Philip Hammond delivered his first Autumn Statement today.
Other than changes to the future timing of the annual Budget, the content was not very inspiring..at one point the only tax measure was the introduction of 100% first year allowances for expenditure on electric charge point equipment !
Thankfully there was a little more to follow..here is our initial summary of the main tax announcements:
1. Reconfirmed commitment to the business tax road map, which includes cutting the rate of corporation tax to 17% by 2020.
2. Alignment of the thresholds for employers & employees NI contributions from April 2017.
3. Removal of the tax and employer NI advantages of salary sacrifice schemes from April 2017 with some protection offered for existing arrangements until April 2018, and until April 2021 for arrangements involving cars, accommodation and school fees. Pensions, childcare, cycle to work and ultra-low emission cars will not be affected.
4. Announcement of a consultation on incorporations and business structures, required following an increase in incorporations and a move to more self-employment which is being blamed for lower than expected tax receipts.
5. Introduction of new measures to prevent abuse of the VAT Flat Rate Scheme.
Finally not to forget the timing of the annual Budget…..we will move to a single Budget to be held in autumn each year. However to bring the dates in line we will have two budgets during 2017, one in the spring as usual and another in autumn.
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.