This week the Chancellor made his autumn statement – this is the first ‘budget’ since the Brexit vote in June.
Many ‘think tanks’ had called for stability in the business taxation environment and this has largely been delivered.
There are however changes coming in the areas of personal taxation and self employment:
- Increasing the planned the point at which people pay tax (National Insurance has lower thresholds)
- Confirming the abolition of Class 2 National Insurance from 2018
- Stabilising the corporate tax environment and confirming that Corporation Tax will reduce to 17% by 2020
- Reform of the Vat flat rate scheme to include a new 16.5% rate
- An increase in Insurance Premium Tax from 10% to 12%
HMRC is to receive further investment to police the National Minimum and Living wages. There are also likely to be further HMRC activity on the employment status of freelancers. I will be reviewing my fee protection arrangements over the coming weeks and be communicating them to clients - it's never been more important to have something in place to ease the burden of a tax investigation!
Don't forget, this newsletter is designed to draw attention to specific topical issues and is in no way intended to provide advice tailored to your business - advice must always be sought before acting on any item featured.
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