By Matthew Perry
Here it is, the last Spring Budget for Britain. Before you begin reminiscing on the theatrics of the Spring Budgets of the past, let us remind you that there will still be a fiscal statement made in Spring. While it may be the last major Spring fiscal event, this will not be the last time we hear about major tax reforms, and a little hyperbole, at this time of year.
This Budget comes at a time when Britain is yet to invoke Article 50, meaning this could be extremely lightweight in terms of large scale changes to the financial system. While this may hold the Chancellor back from announcing anything with the ‘wow factor’, here is what we are expecting from Budget 2017.
- London business rate hike – These are being revalued for the first time in 7 years. There is concern among many small business owners with a physical set up in London that this will leave them at a major disadvantage to digital stores. Philip Hammond is expected to address the disparity by allowing local government to reduce the bills sent out. The proposed bailout contribution from the Treasury is likely to be around £300 million.
- Crossrail 2 vs. High Speed 3 – It is likely that there will be a dispute over the distribution of funding to the nation’s transport network, as London and northern England both fight their corner. Crossrail 2 could unlock an estimated 200,000 new homes and 200,000 jobs whereas major northern cities such as Manchester and Leeds see HS3 as being key to unlocking an increase in growth opportunities with wider access to talent across England.
- MTD – The buzz phrase that seems like it has been around forever – Making Tax Digital. Due to take effect from April 2018, HMRC’s grand scheme to help smaller business owners and freelancers take better control of their taxes should be further clarified in tomorrow’s talks. This comes in the wake of their latest release of the ESS, enabling self-employed workers to assess their standing under IR35.
- Brexit Backup Fund – This Budget will not reveal a large spending spree. The Chancellor is building a fund in case there is an economic downturn after Britain has left the EU.
- Buy-to-let tax changes – There are complex changes coming to landlords managing buy-to-let properties. Find out about the details in this article.
- Corporation Tax – Further drops below the guaranteed 19% (this April) are unlikely.
- Personal Tax – This is expected to be low-key, with many of the various personal tax contribution rates having already been confirmed.
As we always do, we’ll be reacting live to the statements made tomorrow on our Twitter channel @RodliffeAcc and will be updating our website with the outcomes of the Budget later this week.
You’ll likely have questions and we’ll likely be able to help! Please contact your Account Manager if you are already a client or get in touch with us via email or phone if you require assistance adjusting to the changes proposed in the Spring Budget 2017.