Some key points from yesterday’s budget………
- The tax-free dividend allowance will be reduced from £5,000 to £2,000 from April 2018
- Confirmation that the off payroll rules for public sector will be coming in from 6 April. Minor tweaks trailed in the announcement include an option “for an agency or public sector body to take account of the worker’s expenses when calculating the tax due”. The planned tax yield has gone up slightly from the consultation to £185mn in 2017/18.
- Class 4 NIC rates on self-employed workers due to rise by 1% from April 2018 and an additional 1% the following year with Class 2 being abolished in 2018.
- A rise in April in the registration threshold for VAT to £85,000 - (up from £83,000 now)
- A rise in the deregistration threshold for VAT to £83,000 – (up from £81,000 now)
If you have any questions following yesterday’s budget update and how it will affect you please feel free to email or call us to discuss further.