March 2017 Budget Briefing | Solicitors in Bury St Edmunds offering fixed prices in easy to understand packages
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March 2017 Budget Briefing

On Wednesday the 8th March the Chancellor Philip Hammond delivered his Budget for the coming year. We have compiled an overview that summarises the key areas that are likely to impact upon you in the coming year and beyond.

Taxation

Class 4 National Insurance contributions for the self-employed will go up to 10% in April 2018 and increase by a further 1% in 2019.

Financial penalties to be levied on professionals who create and use tax avoidance schemes that are later defeated by HM Revenue & Customs.

The current tax free dividend allowance for private shareholders and company directors will be reduced from £5,000 to £2,000 as of April 2018.

Tax free childcare policy launches next month, and from September, parents will be eligible for 30 hours a week of free childcare. Government pledge to spend £6bn a year on childcare by 2020.

Savings

NS&I Bond will pay 2.2% on all deposits up to £3,000.

Business

Any type of business that comes out of rate relief will not see their bill increase by more than £50 a month, and further increases will be capped.

There will be a £1,000 discount for all pubs with a rateable value of less than £100,000.

Local authorities will have access to a £300m discretionary fund to allow them to provide business rate relief on a case by case basis.

Further clampdown on tax avoidance – pledge to stop businesses converting capital losses into trading losses, UK VAT to be charged on roaming telecoms services beyond the European Union and plugging the loophole that allows individuals to place funds into foreign pension schemes and thus avoid UK taxes.

Alcohol & Tobacco

No change to previously planned upratings of duties on alcohol and tobacco, but a new minimum excise duty will apply to cigarettes based on a packet price of £7.35.

NHS & Social Care

Hospitals will get £325million to implement ‘transformation plans’ and another £100 million will be put into a new triaging projects in England.

£3 billion to be pumped into social care over the next three years, with £1 billion of this available in the coming tax year (2017/18).

Education

£320million to help fund up to 110 new free schools, including Grammar Schools and new specialist ‘Maths Schools’.

£500million to encourage and develop technical training and place it on an equal footing with academic studies.

£216million to rebuild and refurbish existing schools in England.