Autumn Statement Summary

 

 

Autumn Statement Summary

 

In his first Autumn Statement Philip Hammond announced that it would also be the last.  The budget will be moved to the Autumn, replacing the Autumn statement, and in the budget’s place will be a Spring statement. 

Confused? 

Let’s look at the tax highlights:

• There was confirmation that Corporation Tax will be reduced to 17% by 2020.
• Rules will be tightened on some salary sacrifice schemes from April 2017.  Salary sacrifice schemes allow an employee to forgo some of their salary in exchange for company provided benefits, such as provision of a company car or phone contract, resulting in the employee not paying income tax on the benefit and the company avoiding paying national insurance.  Excluded from the changes to salary sacrifice schemes are cycle to work schemes, childcare and very low emission cars.
• Class 2 national insurance contributions (paid by the self-employed) will be abolished from April 2018.
• The national insurance threshold for employees and employers will be aligned at £157 per week from April 2017, in a move to simplify national insurance payments for employers.
• Insurance premium tax will increase from 10% to 12% in June 2017.
• The tax free personal allowance is due to be raised to £12,500 and the higher rate band to £50,000 by 2020.
• The national living wage will be increased to £7.50 per hour from April 2017.
• It was confirmed that tax free childcare
• There was no rise in fuel duty.

If you would like to know more about any of the changes ahead please contact us here