Budget 2017: A Recap
9 March 2017
The Spring Budget was delivered yesterday by Chancellor Philip Hammond. Like most years, there has been plenty of discussion and debate surrounding the newly announced plans.
Most people are keen to know how any reforms will affect their day to day lives. For business owners, it’s more about how they are going to be maintain current revenue, output and staffing levels.
Even the smallest increase or decrease to certain taxes can result in serious problems – a penny either way can often make the difference.
Like most Budgets, there is good news and bad news for the year ahead. Here is our quick recap of everything that the Chancellor has announced.
- FUEL TAX – There will be no increase on fuel duty this year, and this will be reviewed as part of the next Budget.
- NATIONAL INSURANCE – The only change made is for self-employed workers. National Insurance will rise by 1% to 10% in April 2018 and then to 11% the following April. It works out, on average, at £240 extra in National Insurance payments per person per year.
- TAX FREE ALLOWANCE – This will rise to £11,500 this year and to £12,500 by the year 2020.
- NORTH SEA OIL – Review of taxation for producers in order to help sustain the industry for the future.
- LOSSES CRACKDOWN – There will be an £820 million tax avoidance crackdown, including action to prevent businesses from converting capital losses to trading losses.
- ROAMING CHARGES – The government is slapping VAT on roaming telecoms services outside the EU.
- CIGARETTES – A minimum duty has been introduced based on a packet price of £7.35. You can no longer buy packets of 10 and packets of 20 will cost 35p more. The price of tobacco has now risen at 2% above Retail Price Index inflation.
- ALCOHOL – Whisky will cost 36p per bottle; gin will cost 32p more; a pint of beer will cost 2p more and a pint of cider will cost 1p more.
- SUGAR TAX – Most sugary fizzy drinks will be subject to tax at 24p per litre as the government has a mandate to tackle childhood obesity.
- THE BARNETT FORMULA – There has been a £350 million adjustment to Scotland’s allowance, owing to spending increases in England (such as £1 billion extra for social care).
Do you agree with the latest Budget? Are you self-employed and will be hit by the increase in National Insurance? Comment below and let us know.
Written By Mary Palmer