Autumn Statement Highlights
Philip Hammond, the Chancellor delivered the autumn statement yesterday.
Here are the key announcements relevant to our Industry made by the Chancellor:
- National Living Wage to rise from £7.20 an hour to £7.50 from April next year
- Employee and Employer National Insurance thresholds to be equalised at £157 per week from April 2017
- Class 2 National Insurance contributions to be abolished from April for the self-employed (see paragraph 4.8 in the statement)
- The government will reform ‘Off Payroll working rules’ for PSCs in the public sector from April 2017 (see paragraph 4.11 in the statement)
- The tax and employer National Insurance advantages of salary sacrifice schemes will be removed from April 2017, (with some exceptions) (see paragraph 4.13 in the statement)
- Business Corporation tax to be brought down to 17% by 2020. (see paragraph 4.23 in the statement)
- Making Tax Digital - In January 2017, the government will publish its response to the Making Tax Digital consultations and provisions to implement the previously announced changes. (see paragraph 4.42 in the statement)
- Budget 2016 announced changes to tackle use of disguised remuneration schemes by employers and employees. (see paragraph 4.46 in the statement)
- Flat Rate Scheme - The government will introduce a new 16.5% rate from 1 April 2017 for businesses with limited costs, such as many labour-only businesses (see paragraph 4.51 in the statement)
- Tax free personal allowance to be raised to £11,500 in April
- Higher rate income tax threshold to rise to £50,000 by the end of the Parliament
Finally, the Chancellor announced that this was the last Autumn Statement as starting in 2017 Britain will have an autumn Budget and a "Spring Statement" from 2018, announcing tax changes well in advance of the start of the tax year.