Following the unveiling of Phillip Hammond’s first – and last* – Autumn Statement, it’s great that the Chancellor immediately recognised how important productivity is as the UK economy competes with other G20 members.
There were some notable highlights for business and personal taxation this year. In particular, committing to reduce the burden of business rates by £6.7 billion over the next 5 years and cutting the rate of corporation tax to 17% by 2020 (the lowest in the G20), is a much needed boost. These are just a couple of steps that will help keep the small business growth on track.
It’s also great to see the government’s forthcoming commitment to raising the personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of the Parliament. Increases to the personal allowance over the last Parliament took 4 million of the lowest paid out of income tax altogether.
Another great initiative for the self-employed is the alignment the National Insurance secondary (employer) threshold and the National Insurance primary (employee) threshold from April 2017. This means both employees and employers will start paying National Insurance on weekly earnings above £157. Moreover, Class 2 NICs will be abolished from April 2018. We approve these proposals. Anything that simplifies the payment of National Insurance for both employers and self-employed is a good thing.
Including the above, here are other important tax and money highlights for small business owners
Pay hikes for minimum wage earners
Insurance tax rises
Sacrifice of Salary sacrifice schemes
Boost for drivers
Good news for savers
Tax free childcare
Universal credit users (a bit) better off
And last but never the least, no more Autumn Statements!
*And to the biggest cheer of the day, the Chancellor finished by announcing it was his first and last Autumn Statement as he has decided to abolish it. From 2017, the Budget will go back to its traditional autumn appearance while there will be a Spring Statement from 2018.