Autumn Budget Report 2017

This Report, which was written immediately after the Chancellor of the Exchequer delivered his Budget Speech, is intended to provide an overview of the latest announcements and recent measures most likely to affect you or your business.

The 2017 Autumn Budget represents the first step in the government’s new Budget regime, which sees the main Budget now being presented in the Autumn, to be followed by a Spring Statement the following year. 

We can help to ensure that your financial plans remain effective, even as your personal and business circumstances change. We will work alongside you to help you achieve a rewarding and financially secure future.

How to make the most of our services

The 2018/19 Tax Calendar details many of the important dates and deadlines for the coming tax year.

Do contact us as soon as possible to discuss any action you may be considering, and to review your long-term plans. We always welcome the opportunity to help.

Please note: while most taxation changes take effect from the start of the new financial year, or tax year, some may not take effect until 2019, or later. Where relevant, details of these changes have been included in this Report. 

To Email or print this report please use the icons at the beginning of this article. To see the report in full click the link below..

See the full report - 2017 Autumn Budget Report

November 17 Budget Update

The key points from yesterday’s budget are:

Pensions

The pension lifetime allowance will rise to £1,030,000 and reassuringly there are no changes to the pensions funding limits – i.e. the annual allowance remains £40,000 and will not be tapered until adjusted income exceeds £150,000.

Income Tax

The personal allowance and higher rate threshold will increase to £11,850 and £46,350. The income tax rates and bands which will apply to Scottish taxpayers will be announced in Scottish Budget on 14th December.

The dividend allowance will be cut to £2,000 as already announced. In particular, thus will hit small and medium sized business owners who take their profits as a dividend. Employer pension contributions will become an even more attractive way of extracting profits from a business.

There are no charges to any other income tax bands.

Capital Gains Tax

The Capital gains tax allowance will increase by £400 to £11,700.

Inheritance Tax

As expected, the IHT nil rate band will remain at £325,000 until April 2021 and the residence nil rate band will increase from £100,000 to £125,000. In total that will mean that, from April, couples can leave assets up to £900,000 to future generation free of IHT.

Trusts

There will be a consultation published in 2018 to consider the simplification and fairness of trust taxation.

ISA’s

Annual ISA limits stay at £20,000 per person, with a range of different ISAs to choose from. Each has its own rules and limits and is designed for different purposes, whether that’s medium or long term investing, or saving for a house or deposit.

November 2017 Budget

Today the beleaguered chancellor, Philip Hammond, will deliver his November Budget. Under pressure to please the Leavers and the Remainers in the government and against a backdrop of weakening growth, falling living standards and Brexit uncertainty he's probably not slept well.  We hope you did.  To get you off to a good start today here is a link to some key charts which have been bothering our chancellor in recent weeks.

KEY CHARTS

The BBC will be providing news and analysis of developments as they unfold on its web site HERE from 12.20 pm.

 

Excuses, excuses!

Here are HMRC’s Top 10 excuses from last year for late tax returns– You’ll be glad to know that “the dog ate it” makes a welcome return, but what was the Number One reason?

In reverse order:

10. Sorry, but the postman doesn’t actually deliver to my address
9. My internet was broken
8. It’s my husband’s fault – he told me the deadline isn’t until 31 March
7. One of my workmates borrowed my return to photocopy…..and lost it
6. I couldn’t send it in as my child drew all over it
5. My husband left me…..with the accountant. I’m now trying to find a new accountant. [No mention of finding a new husband, though!]
4. The dog ate it!! [And it was a hungry dog as the excuse also claimed the dog ate all the reminders as well.]
3. My wife helps me do it but she had a headache….for ten days
2. There was a wasp in my car and it caused an accident, destroying the car and the tax return

And, this year’s Number One is…..

1. My tax return was on my yacht…..which caught fire!!!

Please be careful! 

A number of our clients have been receiving an email or text message pretending to be from HMRC stating that they are due a tax refund.

This email/text usually contains a link which when clicked can download a virus to your computer or alternatively when clicked has an option to put in your bank details!

HMRC will never send you an email or text stating you are due a refund, therefore please delete anything of the sort to avoid these sorts of scams/virus's.

Stay Safe!

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Well done Fraser

A Big congratulations to Fraser here in the office on passing another AAT exam, only 2 more to go!! 

Keep up the good work!!

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Socks and Chocs donation

Dalton Pardoe donating £250 to a local charity group 'Socks and Chocs for the Homeless‘ who do a great job in Wolverhampton and surrounding areas providing homeless people with a few basic home comforts at Christmas.

https://www.facebook.com/sockschocs

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Extracting cash from your company in the most tax efficient way.

The way in which your business is structured will affect the amount and type of tax and National Insurance that you pay.

Depending on the set up, ways to extract money from your business range may include Salaries, Benefits in Kind, Dividends and Pension provisions along with other more complex ways.

It is worth giving some thought to the best way to extract profits from your company as planning ahead can generate substantial tax and NIC savings.

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Well done Lucy

We would like to congratulate Lucy here in the office on passing her AAT Level 2 Foundation Certificate in Accounting', Now onto level 3!

Keep up the great work!!