2017 SPRING BUDGET HIGHLIGHTS

Personal Tax

  • Personal allowance will be £11,500 from April 2017
  • Higher rate income tax threshold £45,000 (and therefore Basic Rate band £33,500)
  • 1% rise in Class 4 National Insurance for the Self Employed from April 2018, followed by a further 1% rise from April 2019
  • Dividend allowance to be reduced from £5,000 to £2,000 from April 2018

Business Taxes

  • Corporation tax will reduce to 19% from April 2017, with a further reduction to 17% in April 2020
  • A series of measures to ease transition for those facing higher bills for business rates
  • Changes to Research and Development Tax Credits to encourage smaller companies to make claims

Making Tax Digital (MTD)

  • Introduction of MTD for businesses with turnover below the VAT threshold (£85,000 from April 2017) will be deferred by one year to April 2019

New rates and allowances

The new rates and allowances can be seen by following this link:

https://www.gov.uk/government/publications/spring-budget-2017-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances