An uneventful budget, thank you Phillip!
Here’s a brief round-up of the main points for you as a small business owner:
Personal tax free allowance – to increase to £11,850 for 2018/19 (from £11,500)
Marriage Allowance – increase to £1,185 worth a possible tax saving of £237 (from £230)
VAT Threshold – has been frozen at £85,000 for two years (there’s a hint that this could be lowered in line with other EU countries after April 2020)
Tax free dividend allowance – will be reduced to £2,000 (from £5,000) as we already knew from April 2018.
Corporation tax – to remain at the current rate of 19%.
Making Tax Digital – VAT registered businesses will be required to maintain digital records from April 2019 – meaning that most such business will need to consider using cloud accounting apps.
IR35 – Unsurprisingly, it was announced that HMRC will consult on reforms to IR35 for the private sector (public sector having already undergone reforms).
Self-Employed NI – Will delay the abolition of Class 2 NICs by a year until 6 April 2019. Class 4 will remain at 9%.
National Minimum Wage – increase to £7.83 starting April 2018 (from £7.50)
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