On Wednesday 23rd November the Chancellor, Philip Hammond, gave his first Autumn Statement.
He described it as a plan to ensure the UK economy is “match-fit” ahead of Brexit.
Autumn Statement 2016 – highlights for small businesses
The key points that we feel matter most to our clients are:
- Government recommits to raising the personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of Parliament
- Recommits to cutting Corporation Tax to 17% by 2020
- National Living Wage to increase to £7.50 from April 2017
- Employee and Employer NIC thresholds aligned at £157 per week from April 2017
- Class 2 NICs abolished from April 2018
- Off-payroll reforms in the public sector from 2017 – this will impact contractors so we’re watching this one very closely
- New tax allowance for property and trading income of £1,000 each, which means that income below this will not incur tax or need to be declared.
He also announced the move towards a single Autumn Budget from 2017, meaning that tax changes will happen only once a year in future, which can only be a good thing!
Or to discuss how these changes affect you and your small business call Esther or Natasha on 01737 652 852.