Spring Budget 2017 Key Announcements

Whilst Philip Hammond’s first (and last) Spring Budget delivers a rosy assessment of the British economy with unemployment at an eleven year low, it is overshadowed by the imminent triggering of Article 50 and big questions over the UK’s global economic future outside the EU.

In making sure we have enough “gas in the tank” for the Brexit journey, the Chancellor is raising taxes and investing more in infrastructure and technical training, to secure the funds, tools and skills he thinks the country will need.

Mr Hammond also recognises the need for greater productivity to improve the balance of payments, but is he really helping small businesses who are facing digital quarterly reporting next year, and unfair changes in the VAT flat rate scheme and IR35?

Our full Budget Summary can be downloaded here.

Recap – key tax changes previously announced:

• Tax free personal allowance £11,500 from April 2017
• Higher rate threshold retained at £43,000 in Scotland
• Apprenticeship levy for large companies from April 2017
• Tax relief for landlord’s finance costs restricted from April 2017
• Certain non-UK dom individuals become UK doms from April 2017
• New IHT nil-rate band for residences from April 2017
• £1,000 tax free allowances for micro businesses from April 2017
• New Lifetime ISA for anyone under age 40 from April 2017
• ISA annual limit becomes £20,000 from April 2017
• Termination payments attract employers’ NIC from April 2018
• Corporation tax reduced from 20% to 17% by 2020
• Insurance Premium Tax increases to 12% from June 2017

Spring Budget 2017 key measures:

• Corporation tax reductions confirmed. Will be 17% by 2020
• Making Tax Digital delayed by one year for businesses with turnovers below the VAT registration threshold (£83,000)
• Promise of further tax reforms for the self employed
• National Insurance Contributions for the self employed to be aligned with employees. That means a 1% increase in Class 4 NICs from April 2018 to 10% and then a further 1% in April 2019. Class 4 NICs were not included in the government’s tax lock
• £5,000 Dividend Tax Allowance reduced to £2,000 from April 2018
• National Living Wage to rise to £7.50 per hour from April 2017
• Personal tax allowance to rise to £12,500 as planned by 2020
• New green paper on protecting consumers
• More infrastructure spending on technology to improve productivity
• Salary sacrifice schemes scrapped from April 2017 except for ultralow emission cars, pensions, childcare and cycle schemes
• The charge for the Annual Tax on Enveloped Dwellings will rise in line with inflation for 2017/18

Finance Bill 2017

Whilst we have some information today on these announcements, the detailed provisions will be published on 20 March in Finance Bill 2017.

Autumn Statement 2016

You can read our full summary of the announcements made in the November 2016 Autumn Statement here.

Budget Analysis Seminars 2017

We are holding our Annual Post-Budget Analysis seminars in four venues across the East of Scotland on Monday 13 March 2017.

We would be delighted if you could join us to hear EQ Taxation’s experts cover the main announcements, changes and how they will impact you and your business.

If you would like to attend one of our seminars, please email us with your name and choice of venue. Full details on each location can be found below.

Rothes Halls, Glenrothes – Monday 13 March at 8am

The Scores Hotel, St Andrews – Monday 13 March at 12:30pm

The Apex Hotel, Dundee – Monday 13 March at 5:30pm

Panmure Arms Hotel, Edzell – Monday 13 March at 5:30pm

As always, refreshments and a light buffet will be provided at each venue with a chance to network and ask our taxation experts any questions you may have.

If you have any questions or want to book your place, please email Laura Hutt with your chosen venue or question.