[23.11.16]

The Chancellor, Phillip Hammond, has presented his Autumn Statement to Parliament. The main headlines from the statement focused on building an economy that works for everyone, providing certainty for businesses, a fair and sustainable tax system, as well as addressing the economic imbalance and housing needs.

In case you missed them, here are some of the key announcements from the Autumn Statement that will affect small to medium sized businesses…

1. The National Living Wage for those aged 25 will increase to £7.50 and the National Minimum Wage across all ages will increase from April 2017.
2. £4.3million will be spent on helping small businesses understand the rules and cracking down on employers who are breaking the law by not paying the minimum wage.
3. A commitment to cut Corporation Tax to 17% by 2020 benefitting over 1 million businesses.
4. £400million of funds though the British Business Bank will be invested in innovative small businesses with potential for growth.
5. A total of £23billion to be spent on innovation and infrastructure over five years, ensuring the UK’s economy is fit for the future.
6. Motorists will benefit from the decision to freeze fuel duty for the seventh year in succession, saving drivers £130 on average.
7. Income tax threshold to rise to £11,500 in April and £12,500 by 2020; and the higher tax rate threshold raised to £50,000 by the end of this Parliament.
8. Plans to scale back “unfair” salary sacrifice schemes so they will be subject to the same tax as cash income. Exceptions include, ultra-low emission cars, pensions saving, childcare and the cycle to work scheme.
9. Employee and employer National Insurance thresholds to be equalised at £157 per week from April 2017
10. Insurance Premium Tax to rise from 10% to 12% in June 2017.
11. Letting agents will no longer be able to charge renters an admin fee.

Over the next few weeks we will be reviewing the detail of the 2016 Autumn Statement, and will be in touch with more information.  In the meantime if you have any queries on the above and how it affects you, please contact Jackie or Andrew.

Castletons Accountants