Autumn Statement Highlights
Here are the highlights from "last autumn statement" as the Chancellor announced that starting in 2017 Britain will have an autumn Budget and a "Spring Statement" from 2018, announcing tax changes well in advance of the start of the tax year.
Philip Hammond, the Chancellor delivered the autumn statement yesterday.
Here are the key announcements relevant to our Industry made by the Chancellor:
- National Living Wage to rise from £7.20 an hour to £7.50 from April next year
- Employee and Employer National Insurance thresholds to be equalised at £157 per week from April 2017
- Class 2 National Insurance contributions to be abolished from April for the self-employed (see paragraph 4.8 in the statement)
- The government will reform ‘Off Payroll working rules’ for PSCs in the public sector from April 2017 (see paragraph 4.11 in the statement)
- The tax and employer National Insurance advantages of salary sacrifice schemes will be removed from April 2017, (with some exceptions) (see paragraph 4.13 in the statement)
- Business Corporation tax to be brought down to 17% by 2020. (see paragraph 4.23 in the statement)
- Making Tax Digital - In January 2017, the government will publish its response to the Making Tax Digital consultations and provisions to implement the previously announced changes. (see paragraph 4.42 in the statement)
- Budget 2016 announced changes to tackle use of disguised remuneration schemes by employers and employees. (see paragraph 4.46 in the statement)
- Flat Rate Scheme - The government will introduce a new 16.5% rate from 1 April 2017 for businesses with limited costs, such as many labour-only businesses (see paragraph 4.51 in the statement)
- Tax free personal allowance to be raised to £11,500 in April
- Higher rate income tax threshold to rise to £50,000 by the end of the Parliament
Finally, the Chancellor announced that this was the last Autumn Statement as starting in 2017 Britain will have an autumn Budget and a "Spring Statement" from 2018, announcing tax changes well in advance of the start of the tax year.