Author: David Richardson

It is 12 months since we sponsored Lucas Martin to climb Kilimanjaro for Childreach – we have just had an update of the benefits of the monies raised…..

Last year, with your amazing support, we opened 86 classrooms following the Nepalese earthquakes helping 2082 children return to school; we also improved learning environments and health standards in Tanzanian schools such as Ronga School, that went from ranking 131^st to just 3^rd in Moshi! With your help, we have achieved this and so much more. (To find out more about what we’ve been up to, follow this link.)

Well Done Lucas.

Now we have got our 2017 design available we thought a preview might be good. We will be sending them out to our clients in due course but if you would like one and you’re not a client just fill in one of our enquiry forms on the main pages of our website and we will pop one in the post to you.

 

 

WHAT DOES THE BUDGET MEAN FOR YOU?

BUDGET MARCH 2017 – key points

Today we saw these new announcements which come into effect from April 2017:

 

• If your business has been affected business rates revaluation then you will now get some relief
• If as a self employed business you use the simplified ‘cash basis’ of accounting for VAT then the registration threshold has been increased to £150,000 for 2017/18, and extended to landlords.

These measures have been announced previously but the Chancellor has confirmed that they will be effective from April 2017:

• The tax-free personal allowance will be £11,500, and the threshold for 40% tax will be £45,000.
• National Insurance thresholds for employers and employees made consistent at £157 per week.
• Tax and National Insurance advantages of ‘salary sacrifice’ schemes are withdrawn, apart from arrangements involving pensions, childcare, Cycle to Work and ultra-low emission cars.
• New £1,000 tax-free allowances for trading and property income apply for 2017/18 tax year.
• New tax-free childcare arrangements to be introduced on a trial basis and rolled out to all taxpayers over the coming year.
• Tax advantages of foreign domiciled status will be lost for those resident in the UK for 15 of the last 20 years, and UK property held by a foreign domiciled individual through offshore structures becomes chargeable to Inheritance Tax.
• ISA investment limit rises from £15,240 to £20,000 per year, of which £4,000 can be in the new ‘lifetime ISA’.
• Public sector employers become responsible for tax due from individuals working for them through personal service companies and similar arrangements where there is an underlying employment relationship. This has a big impact if you are a contractor working in the public sector.
• Limit on pension contributions for those who have already made a flexible income drawdown from a money purchase pension scheme will fall from £10,000 per year to £4,000 per year. Limit for those who have not made such a drawdown remains £40,000.
• Main rate of Corporation Tax falls to 19% from 1 April 2017.
• Benefit of VAT Flat Rate Scheme almost completely withdrawn for businesses spending less than 2% of their turnover or less than £1,000 per year on goods, excluding capital goods, food, vehicles and fuel. The new rate applicable if your business falls in this category is currently 16.5%
• Reforms to restrict interest relief and amend the rules for brought forward losses for corporation tax.
• From 1 June 2017, Insurance Premium Tax rises from 10% to 12%.

New announcements which will be implemented in April 2018:

• ‘Making Tax Digital’ reforms require businesses and landlords with turnover above the VAT registration threshold (£85,000 for 2017/18) to make quarterly online reports updating their tax position; businesses below the threshold will not be affected until April 2019 (when turnover threshold will be £10,000).
• Class 4 National Insurance Contributions rate on profits between lower threshold and upper limit (for 2017/18: £8,164 to £45,000) rises from 9% to 10% (and from 10% to 11% in April 2019).
• Nil rate band for dividend income, introduced at £5,000 for tax year 2016/17, reduced to £2,000 for 2018/19. If you currently receive income by salary and dividend this will impact on personal tax payable which will increase

It was confirmed that from April 2018:

• Class 2 National Insurance Contributions for self-employed abolished.

 

If your business will be affected by any of the above changes please contact us to discuss further so that we can provide you will specific advice.

 

 Merry Christmas to everyone from all at McGinty Demack!