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You were in luck if you picked the word ‘fairness’ as part of the office Budget bingo sweepstake. The Chancellor, Philip Hammond, used the word liberally in his hour-long Budget speech to the House of Commons.

He announced measures to level the tax playing field, and reiterated that the income tax threshold and national living wage would increase to £11,500 and £7.50 an hour respectively.

 

Aside from tackling pre-Budget pleas to plug a funding shortfall in social care, ‘Spreadsheet Phil’ (as he has become known) also offered relief to business owners worried about the cost of their premises, and announced a new investment bond from NS&I which will likely prove popular with members of the public.

Other points of interest include:

  • The tax-free dividend allowance will be reduced from £5,000 to £2,000 from April 2018.
  • Class 4 national insurance contributions for self-employed workers will increase to 10% in April 2018 and rise again, to 11%, from April 2019 (NOTE: this has subsequently been changed by the Chancellor – see our ‘U-turn‘ article).
  • A 25% charge has been introduced on transfers (subject to some exemptions) to qualifying recognised overseas pensions schemes.
  • Unincorporated businesses and landlords with a turnover below the VAT threshold will have until April 2019 before they are required to implement ‘Making Tax Digital’.

If you have any questions about the changes or how any aspects of your tax and financial planning may be affected by the Budget, please contact us to discuss them.