National Living Wage
The National Living Wage will rise to £7.83 from April 2018 for employee over 25 years of age.
Income Tax and Personal Allowance
Personal Allowance will rise to £11,850 from April 2018. The rise to the higher rate tax band will now see it increase to £46,350.
No changes to additional taxes such as Corporation Tax, National Insurance Contribution and dividends have been announced.
Research and Development
Research and Development will be invested in heavily with a further £2.3 billion promised and R&D tax credits will rise to 12%.
No changes to IR35 were announced, however a consultation on IR35 in the private sector is going ahead.
No changes to the VAT threshold were announced. It will be kept at the same level i.e. £85,000 for the next two years.
Changes to the way in which Business rates are to be calculated were announced. This change will see business rates been calculated using the Consumer Prices Index (CPI) rather than the Retail Prices Index (RPI) from April 2018.
‘Making Tax Digital’
No announcements on ‘Making Tax digital’.
New Diesel Cars
A rise in car tax on new diesel cars that do not meet “clean diesel” benchmarks will be charged. This rise pertains to diesel cars only and not diesel vans.
Tactical measures that will allow HMRC to tackle tax avoidance are being planned.
First time Home Buyers
First time buyers will not pay stamp duty on properties up to £300,000. This will apply from the day that the Autumn Budget 2017 was announced. It also applies to any property bought for up to £500,000, where no stamp duty will be paid up to £300, 000 of its value.
Changes to the Spring Budget
The main Budget will be announced in Autumn with a Spring Statement in place of a full Spring Budget from 2018.