We’re not planning to offer commentary on the infrastructure spending which was announced or the fine detail relating to the sugar tax. Websites and various media outlets including the BBC will all be providing details and no doubt offering their respective opinions.
The direct tax greatest hits for small and medium sized businesses are as follows:
- Corporation tax rates: will be cut to 17% in 2020
- Personal allowance/higher rate threshold: from April 2017 personal allowance goes up to £11,500 and higher rate threshold of income tax up to £45,000
- Capital gains tax rates: from April 2016 will be cut from 28% to 20% for higher rate taxpayers and from 18% to 10% for basic rate taxpayers. However, the old CGT rates will apply to residential property
- Stamp Duty Land Tax rates for commercial property: new slice basis depending on the market value of property:
- Up to £150,000 0%
- Between £150,001 & £250,000 2%
- Above £250,000 5%
- Redundancy: employers will pay National Insurance on redundancy and termination payments from April 2018
- Class 2 NIC: this will be scrapped for the self-employed from April 2018
- VAT: the compulsory registration threshold is up from £82,000 to £83,000 and the de-registration threshold up from £80,000 to £81,000
- Overseas businesses selling goods through online market places: HMRC is to have greater power to compulsorily register, require security and direct that a VAT representative is appointed by such businesses. The VAT representatives and online market places could be made joint and severally liable for VAT under certain circumstances
If you want to discuss any of these highlights with the Bedrock team do give us a call.
