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Wilkins Kennedy – Spring Budget 2017 – Full Report

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The Chancellor has delivered his first and last Spring Budget setting out his plans to build “the foundations for a stronger, fairer and more global Britain”.
We heard that the economy is growing faster than any other in the G7 and that annual borrowing will be falling to £16.8bn by 2021/22.  Whilst reporting an encouraging financial position, the Chancellor reminded us that Britain must get “back to living within its means”.
It is abundantly clear that increasing productivity remains high on the Chancellor’s agenda, reporting that we are 35% behind Germany and 18% behind the G7 average.  A number of measures were announced, but it feels as though there is much more to come.
Turning to taxation, this was a quiet statement compared to previous budget reports.  The most significant measures included.
• Class 4 NIC for self-employed will increase from 9% to 10% in April 2018 and then to 11% in 2019.
• Dividends – tax-free allowance will fall from £5,000 to £2,000 from April 2018.
• Making Tax Digital – quarterly reporting for businesses below VAT threshold will be postponed by one year to April 2019.
• Business rates increase will be capped at £50 per month for businesses coming out of small business rate relief.
• £1,000 discount on business rates for pubs with rateable value below £100,000.
• Capital losses – transferring fixed assets to trading stock, it will no longer be possible to convert capital loss into a trading loss.
• Pledge to simplify the administration of R&D tax credits.
• Consultation to update the tax treatment of employer-provided accommodation.
Please click here to download your Budget Report 2017/2018.
Please click here to download your Tax Card 2017/2018.
If you have any questions about how any aspects of your tax and financial planning may be affected by the Budget, please contact your nearest Wilkins Kennedy office