Autumn Budget Roundup: Impact on Contractors and Small Businesses

//Autumn Budget Roundup: Impact on Contractors and Small Businesses
By Matthew Perry

Today saw the return of the Autumn Budget. Here are the main takeaways from the largest financial event of the year.

What was announced?

IR35 – Introduction of new rules to the private sector

There were plenty of rumours circulating in the lead up that the IR35 update which was introduced in the public sector earlier in the year would make an appearance in the private sector. Despite these rumours, there will be no immediate rollout of this policy in the private sector. Instead, the Government will be consulting on how to tackle non-compliance in the private sector and will be commissioning external research, due to be published in 2018.

Income tax and personal allowance

From April 2018, the higher rate tax band will increase to £46,350. The personal allowance will increase to £11,850 from April 2018.

Company vehicles

Fuel duty increase which was scheduled for April 2018 has been scrapped.

The existing diesel supplement in company car tax to rise by 1%.

Research and development

A further £2.3bn has been allocated to investment in research and development.

R&D tax credits will increase to 12% in April 2018.

National living wage

This will increase by 4.4%, from £7.50/hr to £7.83/hr. This new rate will be applicable from April 2018.

What stayed the same?

There were no changes to the VAT threshold, corporation tax, NIC or the annual dividend allowance.

2017-11-22T17:37:39+00:00 November 22nd, 2017|Accountancy|Comments Off on Autumn Budget Roundup: Impact on Contractors and Small Businesses