From 23 November 2016 to 31 March/5 April 2019, businesses will be
entitled to a 100% First Year Allowance for the cost of installing
electric charge-point equipment for electric vehicles.
From 1 December 2016, income tax and CGT advantages of new shares
issued in return for “employee shareholder status” will be withdrawn
(shares already held not affected).
From April 2017
Income tax rates and allowances confirmed as announced at Budget
2016: tax-free personal allowance will be £11,500, threshold for 40% tax
will be £45,000.
National Insurance thresholds for employers and employees to be
made consistent at £157 per week (currently £1 apart at £155 for
employees, £156 for employers).
Tax and National Insurance advantages of “salary sacrifice” schemes
to be withdrawn, apart from arrangements involving pensions, childcare,
Cycle to Work and ultra-low emission cars.
As previously announced, new trading and property allowances for
£1,000 each for individuals with low levels of income from these
sources.
New tax-free childcare arrangements to be introduced on a trial basis in early 2017 and rolled out later.
As previously announced, tax advantages of foreign domiciled status
will be lost for those resident in the UK for 15 of the last 20 years,
and UK property held by a foreign domiciled individual through offshore
structures becomes chargeable to inheritance tax.
ISA investment limit rises from £15,240 to £20,000 per year.
Public sector employers become responsible for tax due from
individuals working for them through personal service companies and
similar arrangements.
Limit on pension contributions for those who have already made a
flexible income drawdown from a pension scheme will fall from £10,000
per year to £4,000 per year. Limit for those who have not made such a
drawdown remains £40,000.
Rural rate relief doubles to 100% to match small business rate relief.
Benefit of VAT Flat Rate Scheme almost completely withdrawn for
businesses spending less than 2% of their turnover or less than £1,000
per year on goods, excluding capital goods, food, vehicles and fuel.
Reforms to restrict interest relief and relief for brought forward losses for corporation tax.
From 1 June 2017, Insurance Premium Tax rises from 10% to 12%.
New penalty for taking part in tax avoidance schemes that are held
to be ineffective: VAT measures to be introduced from 1 September 2017.
New penalty for being connected with a VAT fraud in circumstances
in which the person “knew or ought to have known” that a fraud was going
on to be introduced from Royal Assent to Finance Bill 2017.
From April 2018
Class 2 National Insurance Contributions abolished; self-employed
retain contributory entitlements through Class 4 NIC on profits or
voluntary Class 3 contributions.
“Making Tax Digital” reforms apply to income tax, according to
present Government plans; responses to consultations on the proposals to
be published in January 2017.
To be announced
New measures to counter “disguised remuneration” schemes used by self-employed people and employers.
We are a firm of Chartered Accountants with a difference. We like to establish client relationships that allow us to understand both your business and personal goals.
Our forward-thinking approach means that we are consistently up to date with the latest tax and business legislation.
We provide a solution that allows our clients to rest assured that we will work towards achieving the best possible outcome for them.
