14 Points to Take from the Spring Budget -

14 Points to Take from the Spring Budget

Cummins Mellor Head of Finance Simon Dickinson provides us with a quick summary of points from the spring budget that was announced on the 08.03.2017 by Philip Hammond:

  • Personal allowance is to rise to £11,500 (currently, £11,000) for the tax year 2017/2018. This is how much income we can earn tax-free. There are plans to increase this to £12,500 by 2020
  • National Insurance for self-employed workers will rise from 9% to 10% in April 2018, and up to 11% in April 2019- These plans have now been dropped as of 15.03.2017
  • Despite requests, business rates will not be abolished, however, a fairer way of taxing the ever prominent digital economy will be discussed in the near future
  • For those that are falling foul of business rates, there is some relief for those that are leaving the small business rate relief by capping any rates increase by £50/month in order to help the business
  • The government have recognised the importance of Pubs and the role they play within local communities and have put a £1,000 discount on their rates bill (T&Cs apply)
  • An action plan by the government is being designed to clamp down on £820m worth of tax avoidance used by companies converting capital losses into trading losses
  • Introduction of UK VAT on roaming charges/services outside of the EU – likely to increase personal phone bills if calls outside the EU are made
  • The UK is the 2nd fastest growing economy in the G7 in 2016 with the forecast for growth in 2017 upgraded from 1.4% to 2% (although growth forecast for 2018 is expected to stagnate)
  • A further 650k people are expected to be employed by 2021
  • Annual borrowing was £51.7bn in 2016-17, £16bn lower than forecasted
  • Debt rose to 86.6% this year but will fall to 79.8% in 2021-22
  • Tobacco will rise 2% above RPI inflation with a packet of 20 cigarettes costing 35p more
  • Duty on beer, cider, wine and spirits will increase with RPI inflation – basically up to 2p on a pint of beer, 1p on a pint of cider, 36p on a bottle of whisky and 32p on a bottle of gin
  • Reduction in tax-free dividend allowance for directors/shareholders from £5k to £2k

It seemed quite a tame budget, although the rise in National Insurance costs was against the conservatives manifesto

Simon Dickinsonsimon
Head of Finance




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