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What the Spring 2017 Budget Means for Business and Employers

09/03/2017

Corporation Tax to be reduced to 19% from 1 April 2017, with a further reduction to 17% by 2020. This would make it the lowest corporate tax rate in the G20.

The VAT registration threshold will increase from £83,000 to £85,000 from 1 April 2017.

As of 6 April 2017, changes will come into effect for those working for a public sector organisation, engaged through an intermediary, such as a personal service company (PSC).

The business rates revaluation takes effect in England from 1 April 2017. The government will set aside funds to provide support for small businesses losing small business rate relief to limit increases in their bills to the greater of £600 or the real terms transitional relief cap for small businesses each year.

The government will also introduce a £1,000 business rate discount for public houses with a rateable value of up to £100,000, subject to state aid limits for businesses with multiple properties, for one year from 1 April 2017.

The government will remove the ability for businesses to convert capital losses into trading losses from 8 March 2017.

Flat-rate VAT industry percentages will be abolished and replaced with a flat 16.50% rate from April 2017.

Class 2 National Insurance contributions (NICs) – a flat rate charge on the self-employed – will be abolished from April 2018.

Class 4 NICs will increase from 9% to 10% in April 2018, and to 11% in April 2019

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