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2017 Spring Budget -Overview of the budget 

   

 

   

 

The Chancellor Philip Hammond stood up and delivered his 1st and 2017 Spring budget at 12:37. and sat down at 13:32 just under an hour 

  

He announced this will be the last Spring budget, and that in future all budget announcements will be released at the same time as the Autumn Statement. 

 

What it means to me for me and my business.  

  

General  

 

·        National Borrowing is forecast to be lower than the Autumn 2016 statement. 

·        Faster Growth of the UK economy 2nd only to Germany, with 2.7 M people in work than in 2010 

·        Inflation is forecast at 2.4% this year, 2.3% next year and 2% in 2019 

·        Further measures in tax avoidance issued 

·        Free school transport extended to all children on free school meals 

·        £260 M extra investment in schools 

·        Sugar levy on soft drinks industry to be introduced in 2018, and this levy to be spent on sport in schools.  Levy will be 18p and 24p on main and higher brands 

·        £16 for new 5G telephone Hub, £200 for broadband networks 

·        Mortgage interest relief confirmed restricted to basic rate on rental properties from 6th April 2017. 

·        Beer duty, cider whisky duties frozen. 

·        Personal allowances confirmed as previous budgets £11,500 from 6th April 2017.  Currently £11,000.  By the end of this parliament £12,500. 

·        Higher tax threshold (40%) confirmed as previous budgets to £45,000 from 6th April 2017.  Currently £43.  By the end of this parliament £50,000. 

 

 

Employers  

 

·        Employers National Minimum wage increased to £7.50 from April 2017 (currently £7.20)  

 

  

Self employed and small businesses  

 

·        Class 2 NIC confirmed abolished from 6th April 2018 

·        Corporation tax is confirmed to be 19% from 1st April 2017 and 17% by 1st April 2020 

·        Dividend £5000 threshold reduced to £2000 from 6th April 2018 

·        Self employment NIC changes as follows 

o       Class 2 NIC abolished from 2018 

o       From 2018 class 4 to increase by 1% to 10% from 6th April 2018 and 11% from 6th April 2019 

·        Businesses of Turnover below £83,000 the chancellor will delay of quarterly reporting from 6th April 2018 to 6th April 2019. 

·        Business rates abolished for all rateable value up to £15,000 (was £6,000) taking the majority of small businesses out of business rates from 1st April 2017, also: 

o       £50 cap on business relief for those now no longer under small business rate relief 

o       Pubs given a £1000 reduction in business rates  

 

 

The above are headlines only.  Should you require further details included in the finance act, please ask a member of staff at R Stride & Co LLP.  


  

  

Rates and Tables  

   

Personal Allowances      

                                                          2014/2015   2015/2016  2016/2017  2017/2018  

 

Personal Allowance  

£10,000  

£10,600   

£11,000  

£11,500 

Transferable personal allowance between spouses   

£ Nil  

£ 1,060  

£ 1,100 

 

Age Allowance (65-74)  

£10,500  

£10,600  

£ 10,800 

 

Age Allowance (75+)   

£10,660  

£10,660  

£ 10,800 

 

Income limit for age allowance  

£27,000  

£27,700 

£27,700 

 

Income limit for personal allowance  

£100,000  

£100,000  

£ 100,000 

 

Personal Savings Allowance (basic rate tax payers)  

N/A 

N/A 

£1,000 

 

Personal Savings Allowance (higher rate tax payers) 

N/A 

N/A 

£500 

 

Tax Free dividend rate 

N/A 

N/A 

£5,000 

 

 

 

  

Tax rates                     

                                              2014/2015         2015/2016       2016/2017          2017/2018  

 

Basic rate               20%  

£0 - £31,865  

£0 - £31,785  

£0 - £ 32,000 

 

Higher rate            40%  

£31,866 - £150,000  

£31,786 - £150,000  

£ 32,001   -£150,000  

 

Higher Rate Threshold **  

£41,865  

£42,385  

£43,000  

£45,000 

Additional rate    45%  

Over £150,000  

Over £150,000  

Over   £150,000  

 

Savings Only Rate 10%  

£0 - £2,880  

n/a  

N/A  

 

Savings Only Rate 0%  

N/A  

£0 - £5,000  

£0 - £5,000  

 

Dividend rate (7.5%) 

N/A 

N/A 

£5,001 - £27,000 

 

Dividend rate (32.5%) 

N/A 

N/A 

£27,001 - £89,000 

 

Dividend rate (38.1%) 

N/A 

N/A 

Over £89,001 

 

   

 National Insurance  

                2014/2015             2015/2016               2016/2017          

 

Employees rate – Class 1  

12%  

12%  

 

Self employed – Class 2  

£2.75 pw  

£2.80 

 

Self employed – Class 4  

9%  

9%  

 

Small earnings exemption – class 2 

£5,885 pa  

£ 5,965 

 

Class 4 Limit 

£8,060 

£8,060 

 

Employees pay NI over  

£153 pw  

£ 155 pw  

 

Employers pay NI over 

£153 pw 

£ 156 pw 

 

Employers rate   

13.8%   

13.8%   

 

Employers Allowance ***  

£2,000  

£2,000  

£3,000 

   

 

  

 

Corporation Tax (Limited Co)    

  2013/2014          2014/2015            2015/2016        2016/2017 

 

Small Profits up to £300,000 ** 

20%  

20%  

20%  

20% 

Next £1,200,000 **  

 23.75%  

21.25%  

20%  

20% 

Over £1,500,000 ** 

23%  

21%  

20%  

20% 

  

** reduced to 19% from 2017 and 17% from 2020 

 

Capital Gains Tax     

                                                           2014/2015            2015/2016            2016/2017     

 

Tax Free Allowance  

£11,000  

£11,100  

 

Entrepreneurs Rate  

10%  

10%  

 

Lower rate **  

18%  

18%  

10% 

Higher rate **  

28%  

28%  

20% 

** depends upon your taxable income – seek advice  

   

Inheritance Tax     

           2014/2015             2015/2016             2016/2017  

 

Threshold  

£325,000  

£325,000  

£325,000  

House Allowance 

£175,000 

Rate  

40%  

40%  

40%  

  

  

VAT   

                                                2014/2015            2015/2016        2016/2017 

 

Lower rate  

5%  

5%  

5% 

Main rate  

20%  

20%  

20% 

Gross to Net Calculation  

1/6  

1/6  

1/6 

Registration Threshold  

£81,000  

£82,000   

£83,000 

Deregistration Threshold  

£79,000  

£80,000 

£81,000 

Cash Accounting Scheme  

£1,350,000  

£1,350,000  

£1,350,000 

  

 

 

 

 

Capital Allowances     

    2014/2015          2015/2016           2016/2017                 

 

New asset limit at 100% **  

£250,000  

£500,000 ***  

 

Balance over above limit  

18%  

18%  

 

Cars over 130g CO2  

10%  

8%  

 

 

** Plant and Machinery and cars under 10g CO2  

*** £200,000 from January 2016 

  

Other Allowances    

2014/2015          2015/2016                       2016/2017                 

  

 

ISA/NISA’s 

£15,000 ** 

15,240 

 

 

Junior ISA’s 

£4,000 

£4,080 

 

 

EIS – 30% relief 

£1m 

£1m 

 

 

Seed EIS – 50% relief 

£100,000 

£100,000 

 

 

VCT – 30% Relief   

£200,000  

£200,000 

 

 

Pension – annual allowance  

£40,000  

£40,000 

 

  

** from 1st July 2014 

  

 HMRC Approved Mileage Rates     

  

Miles                                          Up to 10,000           Over 10,000  

 

Cars and Vans  

45p  

25p  

Motorcycles  

24p  

24p  

Pedal Cycles  

20p  

20p  

Each passenger same trip  

5p  

5p  

  

   

  Company Cars Fuel Benefit Charge 

 

                                                            2014/2015            2015/2016                      2016/2017 

 

Car Fuel Benefit Multiplier 

£21,700 

£22,100 

£22,200 

Van Fuel Benefit Charge 

£581 

£594 

£598 

 

 

National Minimum Wage Rates 

                                                         After 1st October                After 6th April   After 1st Oct  

                                                   2014                         2015                         2016             2016 

 

Under 18 

£3.79 

£3.87 

 

 

18 – 20 

£5.13 

£5.30 

 

£5.55 

Over 21 

£6.50 

£6.70 ** 

£7.20 

£6.95 

Apprentice rate 

£2.73 

£3.30 

 

£3.40 

 

 

 

 

 

 

 

 

 

 

 

This document has been prepared as a general guide. It is not a substitute for professional advice. Neither R Stride & Co LLP nor its partners or employees accept any responsibility for loss or damage incurred as a result of acting or refraining from acting upon anything contained in or omitted from this document. R Stride & Co LLP is a limited liability partnership registered in England and Wales with registered number OC356030.

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