The Budget yesterday had all the potential to be a fairy tale, but no!
The annual forecasts are set to rise, more people are forecast to be in jobs by 2022, meaning the tax receipt projections are up, making more spending possible!
Philip Hammond has extended the public sector IR35 assessment rules to contracts between contractors and large and medium sized private sector businesses. It will come into play from April 2020. Read more about this on page 6 of our budget guide.
This Budget has hit business and property owners. The rules have changed for those wishing to dispose of their shares in their own company at a reduced rate of tax. The criteria for claiming Entrepreneurs Relief (ER) has tightened, while those who rent out a former home have taken a blow too. The final period for the private residence relief has been reduced in addition to the Letting Relief having all but disappeared.
But on the positive side all individual basic rate taxpayers will be £130 per annum better off as the increase in personal allowances is brought forward by one year.
Lots of possible help in the Budget for businesses, large and small and we’re here ready to help. We believe it’s better to chat through all plans before taking any action and so if you would like to see how the 2018 Budget changes can help you, your family and your business, please get in touch.