Budget 2017 – what’s in it for you and your business? 14th March 2017


Have you had time to digest the Chancellor’s first, and seemingly last, Spring Budget statement?

If not, we’ve compiled this business-friendly round up starting with personal taxation and the headline-grabbing rise in National Insurance (NI) payments for the self-employed.

Personal taxation 

  • The main rate of Class 4 National Insurance contributions for the self-employed is to increase from nine per cent to ten per cent in April 2018 and 11 per cent in April 2019. The increases, applying to earnings between £8,060 and £43,000, will raise £145m a year by 2021-22 at an average cost of 60p a week to those affected. All Class 4 earnings above £43,000 will continue to be taxed at two per cent while those below £8,060 will pay nothing. 
  • Class 2 National Insurance, a separate flat rate contribution paid by self-employed workers making a profit of more than £5,965 a year, is to be scrapped as planned in April 2018. Taken together, millions of self-employed workers could pay an average of £240 a year more but ministers say those earning £16,250 or less will pay less.

This announcement on NI certainly dominated post-Budget media coverage. Even traditionally supportive papers such as The Telegraph and The Sun attacked the Chancellor, not least because the NI rise appears to constitute a break of the Conservatives’ previous manifesto pledge not to put it up. Tory MPs have also hit out at the plan, along with former Chancellor Lord Lamont, who said this “tax raid” on the self-employed will be seen as a “rookie error”.

  • The personal tax-free allowance will rise as planned to £11,500 this year and to £12,500 by 2020.

Business

  • £435m for firms affected by increases in business rates, including a £300m hardship fund for the worst hit
  • Pubs with a rateable value of less than £100,000 to get a one-year £1,000 discount on rates they would have paid. As licensed trade accountants, we welcome this news
  • Rate rises for businesses losing existing relief will be capped at £50 a month
    Privately-owned SMEs will get an extra year to prepare for tax digitisation and quarterly reporting

Pensions and savings

  • Reduction in tax-free allowance on share dividends from £5,000 to £2,000
  • Dividend income paid on shares held in a stocks and shares ISA will remain tax free

If you are concerned about any of the above announcements and the possible implications for your business, call SW&A’s friendly team on 01905 620002.


Favourite News Stories...

SW&A Accountants launches it's new website in March 2013 - it's been a long time in the making and has had a lot of input from the owners Neil and Andrew - Andrew says " the website was designed to showcase our services in a lively and informative manner " ...

Our company intends to ensure that our new website become not only a hub of activity but also somewhere as a useful source of information for our current and prospective clients. Neil stated '"it is my intention to use the website as a tool to communicate with out clients; this is something we will grow over the coming years to incorporate our informative blogs, news and social media work."

Keep checking back to find out more..