Below are a summary of the key points in the Chancellor’s budget on 8th March 2017, from a Tax perspective:

 

·         Corporation tax rate to fall to 19% from April 2017, and to 17% by 2020 as planned

·         The “Making Tax Digital” requirements to be delayed for those companies below VAT (£83,000) threshold by 12 months

·         Business rates – any business coming out of small business rate relief next year will not see more than a £50 per month increase

·         90% of pubs will have £1,000 discount on their business rates bill

·         Class 4 NIC’s for the self-employed will increase by 1% to 10% in 2018, with further 1% rise in 2019

·         Class 2 NIC’s to be abolished from April 2018 (currently £2.80 per week for self-employed with profits over £5,965 per year)

·         Reduction in tax free Dividend allowance from £5,000 to £2,000 in April 2018

·         Personal allowance to rise to £11,500 from April 2017 – as previously announced

·         National Living wage to rise to £7.50 per hour from April 2017

·         Continued commitment to increase personal allowance to £12,500 by 2020, and to raise the threshold for 40% tax rate to £50,000 by 2020