Autumn Budget 2017
Posted on 23rd November 2017 at 09:30
The Chancellor Philip Hammond delivered his Autumn Budget speech on 22 November 2017, at 12:30pm. The key points for freelancers, contractors and small business are set out below.
The Personal Allowance (being the amount an individual can earn tax-free for the year) will increase from £11,500 to £11,850 for the 2018/19 tax year.
The Higher-Rate Threshold will increase from £45,000 to £46,350 for the 2018/19 tax year.
The Dividend Allowance (being the amount of dividends an individual can earn tax-free for the year, in addition to the Personal Allowance above) will decrease from £5,000 to £2,000 from April 2018. This was pre-announced in the Spring Budget 2017 and has now been confirmed.
The rate of Corporation Tax will remain at 19% for the 2017/18 and 2018/19 tax years.
Despite predictions that it may be reduced, the VAT Threshold (the point at which you must register) will remain at £85,000 for the next two years.
From 22 November 2017 there will be no Stamp Duty for first time buyers buying residential property up to the value of £300,000.
Finally, it comes as no surprise that HMRC have announced a consultation into reforms to IR35 for the private sector. This follows the changes to the public sector introduced in April 2017.
As always, we will be writing to our clients in due course with tax planning strategies for the new tax year, including the optimum salary and dividends for 2018/19. Keep a look out for an email in the new year!
If you are not yet a client, but are keen to hear our views on the Budget, or indeed anything else - please get in touch.
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