Spring Budget 2017

Chancellor Philip Hammond has delivered his Spring Budget 2017. Here is our summary of the key outcomes:

Personal allowance:​ From 6 April 2017 the tax-free personal allowance will increase to £11,500. The higher rate threshold will rise to £45,000 except in Scotland where it remains at £43,000. 

National Minimum Wage: The national minimum wage for those aged 25 and over will rise to £7.50 as from April 2017.

Dividend allowance: The tax-free dividend allowance will reduce from £5,000 to £2,000 from April 2018.

Corporation tax: The corporation tax rate will fall to 19% from April 2017 and to 17% in April 2020.

Capital Gains Tax: The annual capital gains tax exemption increases by £200 to £11,300 from April 2017.

VAT Registration and De-registration Thresholds: The taxable turnover threshold, which requires a person to register for VAT, increases from £83,000 to £85,000 per annum.  The threshold below which a VAT-registered person may apply to deregister increases from £81,000 to £83,000 per annum​. 

Flat Rate Scheme (VAT): With effect from 1 April 2017, businesses eligible to use the flat rate scheme but which are classified as a ‘limited cost’ business, will have to account for VAT at 16.5% of their relevant gross turnover. 

Making tax digital: Businesses with turnover that is less than the VAT registration threshold (currently £83,000)  will have the introduction of quarterly digital reporting delayed by 12 months. 

Contact us on 01786 586419 or by email hello@jjaccountingsolutions.co.uk for a review of your business affairs.