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Budget 2017 – key tax changes that caught our interest

Budget 2017 – key tax changes that caught our interest

Here are the key tax changes mentioned by the Chancellor in his speech this lunchtime which you may find of interest.

 
Dividend allowance – the tax free dividend allowance introduced from 6 April 2016 is to be reduced from £5,000 to £2,000 from 6 April 2018. This change is to reduce the tax difference between the self-employed and those working through a company.

 
National Insurance Increase for self-employed – From 6 April 2018 class 2 NIC will be abolished and class 4 NIC’s will rise by 1% to 10% (with a further 1% from 6 April 2019). The change is designed to bring the employed and self-employed more in line.

 
Making Tax Digital – As per previous tax chats quarterly reporting to HMRC was to commence in April 2018 for most individuals and the self-employed. In a welcome change, the introduction will be delayed until April 2019 for unincorporated businesses and landlords who have an annual turnover less than the VAT registration threshold, £85,000 from 1 April 2017.

 
Corporation Tax – As previously announced, rates of corporation tax will reduce to 19% from April 2017 and to 17% from April 2020.

 
For more information, please contact Lesley Sutton on 01484 550037 or email lesley.sutton@revellward.co.uk.

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