The Autumn Budget 2017
Phillip Hammond delivered the Autumn Budget on 22 November and despite speculation, it wasn’t as tough as expected for Freelancers. It was believed the VAT registration level may be reduced and new rules would be brought in to bring contractors and freelancers pay more in line with that of an employee. Fortunately, this is not the case; the VAT threshold remains at £85,000 and new rules around Freelancer and contractor tax rates have not come to fruition.
Here are some of the key points from the budget.
Personal Taxation and Wages
Tax free personal allowance on income tax to rise to £11,850 in line with inflation in April 2018
Higher-rate tax threshold to increase to £46,350
National Living Wage to rise in April 2018 by 4.4%, from £7.50 an hour to £7.83
VAT threshold for small business to remain at £85,000 for two years
It was felt that changes to the VAT threshold at this time would complicate the first intake of businesses into Making Tax Digital, which is set for April 2019 for businesses with turnover above the VAT threshold.
Corporation Tax to remain at 19%
Stamp duty to be abolished immediately for first-time buyers purchasing properties worth up to £300,000
95% of all first-time buyers will benefit, with 80% not paying stamp duty
Hammond signalled that the government would explore tax breaks for landlords who offer longer-term secure tenancies.
Following the success of charging 5p for carrier bags, charges on single-use plastic items are to be looked at next. This is important to help protect the worlds oceans.