Autumn Budget Predictions
Philip Hammond's got his red bag out! Lets see what today holds in store for us and our country! Here's an indication based on what's been spoken about so far:-
Recent press reports, have suggested he may be considering a reduction in the VAT threshold (currently £85,000), apparently sparked by a review of VAT by the Office of Tax Simplification. The review emphasised how generous the UK threshold is by international standards, but I we can't see the Chancellor putting this through at this time.
The rate of corporation tax. was cut from 28% in 2010 to 20% in 2015. During the 2015 and 2016 Budgets corporation tax rate stated that Corporation Tax would be to 19% in 2017 and 17% in 2020 – a move which is welcomed by all directors of their company's. He could still cancel the move to 17% but it looks likely to late to reverse the reduction of 19%.
Tax free income (personal allowance)
As previously announced, workers will see their personal tax allowance rise to £11,500 from 6 April 2017 and the allowance will reach £12,500 by the 2019/20 tax year.
Higher rate tax payers
Higher rate tax payers will receive a further tax break as the 40% tax threshold is increased once more. From April 2017 only those with an income of more than £45,000 will be subject to a 40% rate of income tax. At present the threshold starts at £43,000 and the Conservatives have pledged to increase this to £50,000 by end of the current Parliament.
The minimum wage will rise from £7.20 to £7.50 from April 2017, Mr Hammond confirmed. Additionally, the amount that can be invested in an individual savings account (Isa) will also rise to £20,000 next month.
We also welcomed the axe of additional National insurance from April 2018; class 4 national insurance contributions (NICs) will rise from 9% to 10% and a further 1% increase will be implemented in April 2019. Class 2 contributions were also axed!
Any more info is found at the budget site linked here