Budget Update March 2017 -How will it affect you ?
Today Philip Hammond delivered a Budget to prepare Britain for a brighter future with a ‘fair, stable and competitive’ tax system. It was a speech light on tax content. The main highlights are set out below by Premier Accounting.
Introduced in 2016 as £5,000 this will be reduced to £2,000 from 2018. This measure is aimed at director shareholders.
The abolition of Class 2 NIC will go ahead in April 2018 but this will now be coupled with an increase in Class 4 to 10% in 2018 and 11% in 2019. This is intended to reduce the gap between employed and self-employed.
Making Tax Digital (MTD)
For businesses with turnover below the VAT registration threshold quarterly reporting will be postponed until April 2019. This gives these businesses more time to prepare.
Qualifying Recognised Overseas Pension Scheme (QROPS)
Measures will be published in Finance Bill 2017 (but effective from 9 March 2017 to apply a 25% tax charge on pension transfers to QROPS. There will be some exceptions to the charge but these will be tightly drawn.
We will continue to look through the finer points and keep you updated