Accounting, Taxation

How The Spring Budget 2017 affects you

hm treasury

From April 2017:

  • The personal allowance will rise by £500 to £11,500.
  • The basic and higher rate thresholds will increase to £33,500 and £45,000 respectively.
  • Road tax rates for cars registered before April 2017 to rise by up to £5 whilst vans and pre-2001 cars’ owners pay £5 extra.
  • The VAT registration threshold will increase to £85,000 from £83,000 and the deregistration threshold will rise from £81,000 to £83,000.
  • ISA allowance increases to £20,000.
  • Corporation Tax main rate decreases to 19% for financial year 2017/2018.
  • From September 2017, free childcare for three and four year olds will increase from 15 to 30 hours, worth up to £5,000 for each child.
  • Non-UK domiciled individuals (‘non-doms’) will be deemed domiciled in the UK for tax purposes where they have been UK resident for 15 of the past 20 tax years. Additionally, individuals who were born in the UK with a UK domicile of origin, but have acquired a domicile of choice elsewhere, will be deemed UK domiciled for all tax purposes while they are UK resident. NOTE: Non-doms who set up a non-UK resident trust before becoming deemed domiciled in the UK will not be taxed on any income and gains retained in that trust.
  • For those providing services to public sector bodies, responsibility for operating off-payroll working rules, and deducting any tax and NICs due, will move to the public sector body, agency or other third party paying the individual’s personal service company.

From April 2018:

  • The self-employed NICs rate will be 10%, moving to 11% a year later. This compares with the 12% rate currently paid by employees. Class 2 NICs will be abolished from April 2018. [Abandoned as the chancellor made a U-Turn on 15 Mar 2017 to keep rates the same as promised in the party manifesto.]
  • A cut in the dividend allowance from the current £5,000 to £2,000.

About Phoenix

Accountant | Tax Specialist | Dreamy Entrepreneur | Blogger


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