Autumn Statement – An unexciting offering for business
From a tax perspective Phillip Hammond’s first and in fact last Autumn Statement was a fairly unexciting offering. They’ve actually been scrapped going forward.
He was businesslike and to the point, at times funny.
There were lots of economic and social elements but as an accountancy practice we focus here on tax news
The edited highlights:-
- Income tax threshold to be raised to £11,500 in April, from £11,000 now and an increase to £12,500 by the end of the Parliament
- Higher rate income tax threshold to rise to £50,000 by the end of the Parliament
- Tax savings on salary sacrifice and benefits in kind to be stopped, with exceptions for ultra-low emission cars, pensions, childcare and cycling
- National Living Wage to rise from £7.20 an hour to £7.50 from April next year
- Employee and employer National Insurance thresholds to be equalised at £157 per week from April 2017
- Insurance premium tax to rise from 10% to 12% next June
- The rules of Corporation tax to be held as previously advised dropping to 17% by 2020
- Review of the use of the VAT flat rate scheme
Most ominously, Cheryl Lawes a director of England and Company noted the following statement made by the Chancellor:-
“The government will consider how we can ensure that the taxation of different ways of working is fair between different individuals, and sustains the tax-base as the economy undergoes rapid change”.
This was not entered on to any issued briefing but suggests a consultative process on the taxation of incorporated businesses and perceived advantage is on its way. We’ll have to watch this space!!
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