The main points to be noted by employers from the Autumn Budget 2017 announced by the Chancellor of the Exchequer, Philip Hammond, are:
• National Living Wage to rise in April 2018 by 4.4% from £7.50 an hour to £7.83.
• The personal tax allowance will increase by £350 (lower than last years increase of £500) from £11,500 to £11,850 from 6th April 2018, this is in line with the government's goal to have the personal tax allowance at £12,500 by 2020.
• Higher rate tax threshold to increase to £46,350 (up £1,350)
• VAT threshold for small business to remain at £85,000 for two years
The below are not mentioned in the budget but still relevant to all employers:
• Threshold for Student Loan Plan 1 will increase from £17,775 to £18,330 from April 18
• Threshold for Student Loan Plan 2 will increase from £21,000 to £25,000 from April 18
• Transcash Service to pay HMRC via the Post Office is being withdrawn from December 17
Automatic enrolment duties apply to all new and existing employers. Don't ignore it - you have legal duties to meet. Click here to check what you need to do and when.
The Dividend Allowance will decrease by £3,000 from £5,000 to £2,000 from 6th April 2018. This means that there is no tax payable on dividend payments up to £2,000 from April 2018 onwards. Any dividends above this allowance will be taxed at 7.5% for basic-rate taxpayers, 32.5% for higher-rate taxpayers and 38.1% for additional-rate taxpayers.
As always, should you have any queries regarding any of the above and how it will specifically effect your business, give us a call on 01254 781969 or drop us an email at email@example.com