Posted on: 08 March 2017
Today marks the final Spring Budget delivered by the Chancellor of the Exchequer, Philip Hammond, following his announcement last year that the Budget would now be replaced by an autumn Budget and a spring Statement.
Much of what has been speculated in the lead up to the Budget has been addressed with some key changes that may impact small businesses across the UK.
Here is a summary of what has been announced and what it means for your business:
Philip Hammond has announced three key measures in response to change in national business rates to help those facing the biggest increases:
- Any business coming out of small business rate relief will benefit from an additional cap of £50 per month
- Pubs with a rateable value of less than £100,000 will benefit from £1,000 discount on business rates in 2017, which accounts for 90% of pubs in the UK
- £300 million will be provided to local authorities to provide discretionary relief to ‘individual cases of hardship’ in their area for those facing large increases to business rates
- This equates to a total of £435 million in business rate relief
From April 2018, class 4 National Insurance Contributions for the self-employed will rise from 9% to 10%, with a further 1% increase expected in 2019, costing those affected an average of 60p per week.
Directors and shareholders tax free dividend allowance will reduce from £5,000 to £2,000 from April 2018.
Financial penalties will be imposed on professionals who sell a tax avoidance arrangement that HM revenue and Customs later find unlawful.
Philip Hammond has announced the introduction of T-Levels, a new form of technical qualifications aimed at improving skill sets among the English workforce.
Other Key Points:
- ISA allowance will rise to £20,000
- Tax free personal allowance will increase to £11,500 in April 2017 and is set to rise to £12,500 by 2020
- £690 million competition for local authorities to tackle urban congestion across England
- £2 billion additional funding for social care over the next three years
- £100 million available for new triage units by placing GPs in A&E departments by next winter
- £16 million pledged for investment in 5G technology and £200 million for broadband networks
- No increase in alcohol or cigarette duty on top of those already announced
- Vehicle excise duty for hauliers and HGV’s will be frozen for another year
- £5 million funding pledged to support ‘returnships’ – people returning to work after a career break
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