Today Chancellor of the Exchequer, Philip Hammond, has delivered his Autumn Budget – the last Budget before we leave the EU in March 2019. It was widely anticipated as the one that would put a marker down as the end of austerity. The key elements of this Budget include:
- The threshold for VAT registration will remain unchanged for a further two years.
- The Chancellor set out measures to clamp down on tax avoidance, evasion, and unfair outcomes which are expected to raise another £2 billion over the next five years.
- The personal allowance, which is currently £11,850 will increase in April to £12,500 – a year earlier than expected.
- In addition, the higher rate tax threshold, which at the moment starts at £46,350 will change to £50,000 in April – again 12 months earlier than previously set out.
- The National Living Wage will increase by 4.9%, from £7.83 to £8.21 an hour, from April 2019.
- Annual investment allowance to be increased from £200,000 to £1m for two years
- Contribution of small companies to apprenticeship costs to be reduced from 10% to 5%
- Retail business rates bill for firms with a rateable value of £51,000 or less to be cut by a third over two years. This will benefit 90% of independent shops, pubs and restaurants
- £900m in business rates relief for small businesses and £650m to rejuvenate High Streets
- New 100% mandatory business rates relief for all lavatories made available for public use!
- Extending changes to the way self-employment status is taxed, from the public sector to medium and large private companies, from 2020
- Stamp Duty will be abolished for first time buyers of shared ownership properties
Over the next few days we will be reviewing further the detail of the Budget and the impact that it will have on our clients. If you have any queries please contact Jackie or Andrew on 01625 524127.