The Autumn statement
Nothing very spectacular here but in fairness there wasn’t very much to give away. Some of the projected future debt figures for the government are eye watering but we shouldn’t forget that we live in a relatively low tax economy and in a growing economy so its not all doom and gloom.
In terms of the big headlines for tax:
1.Personal allowance is increased to £11,500 and the basic rate band to £45,000 from April 2017 and there will be an increase to 12,500 and £50,000 by the end of the current parliament.
- Flat rate VAT scheme which is often used to simplify VAT affairs and assist sectors such as drivers. HMRC have decided to attack what they call “limited cost” businesses who they see as unfairly benefitting from the flat rate scheme. From 1 April 2017 if traders do not meet certain criteria in terms of their costs as a percentage of turnover then that business will be required to apply a flat rate scheme percentage of 16.5%.
- Insurance Premium Tax will rise from 10% to 12% on 1 June 2017. So insurance premiums might be coming down but the tax on it is going up.
Disappointing ? well Beans thinks there could of been more to help small business so lets hope April brings better news.