Are you ready for the Spring Budget? Here’s some predictions….
What we think is in store for the budget
In two days’ time Philip Hammond will present his first budget to parliament and trying to second guess any changes he may be considering to the UK tax system is always going to be risky!
Assuming he remains committed to austerity, anticipating any potential fall-out from the Brexit process and maintaining (or more likely slowing down) the repayment of national debt, it is difficult to see where savings can come from to fund tax give-aways.
Most of the annual tax free allowances for 2017-18 have already been set and published, so what we may see are commitments to ease taxation in future years.
There have been rumours that the UK may be promoted as a low-tax area to draw non-EU business to the UK after Brexit. Perhaps we will see a promise to reduce corporation tax below 17%, the rate it is predicted to be from April 2020, or bring forward the reduction to 17%.
Other Spring Budget predictions include:
- Increasing stamp duty thresholds for first-time buyers
- Limiting pensions tax relief at higher rates – a 33% cap has been mooted
- Taking the sting out of the recently announced business rate increases
- Efforts to simplify tax compliance for businesses
Additionally, we may see a start towards the alignment of rules for NIC and income tax, removing or closing the disparity between the overall tax and NIC payable by the self-employed and employed persons.
In some respects, tax payers, their advisors and HMRC have their hands full implementing tax changes already announced. The biggest change on the horizon is Making Tax Digital and the necessity for the self-employed to make quarterly data uploads to HMRC from April 2018.
Many of us are hoping that Mr Hammond will opt for a gently-gently approach. By this time next week, we will know…….
At THP we will be sending out our usual budget updates to all clients and contacts on our mailing list. This year we will also be preparing our very first video summary which, all things being equal, will be available to view the day after the budget.
If you are not already on our mailing list please sign up for future updates by completing the form here
Finally don’t forget that beginning this year, future Budgets are being presented in the Autumn. This means that we’ll be getting a double dollop this year. One just can’t get enough of a good thing it seems….
Looking for an accountant?
If your looking for an account to help you with the latest tax changes we have offices in Wanstead, Cheam, Chelmsford, Saffron Walden and the City.