First of all, it’s happening earlier in the year than normal, presumably to get it done before vital Brexit negotiations in early November. It will be presented on a Monday (it’s normally on a Wednesday – this year that would mean it would fall on Halloween!) It will also kick off at 3:30pm, later than the normal lunchtime slot.
What do we know?
The government has committed to finding an extra £20bn for the NHS by 2023. Ministers have indicated it will be partly funded by tax rises.
Mrs May also said that the borrowing cap for local councils wanting to build new homes will be scrapped, potentially adding to the national debt.
At the party conference Mrs May stated that she was extending the duty freeze for a ninth year in a row.
Class 2 NIC continuing.
The last scheduled Budget before Brexit.
What could happen?
Increases in so called Sin taxes – duty on Cigarettes and Alcohol.
Increase in personal Allowance - at the 2017 election that the thresholds would rise to £12,500 by 2020. Could be deferred.
Increase in starting rate for 40% tax - at the 2017 election that the thresholds would rise to £50,000 by 2020. Could be deferred.
VAT registration limited reduction – possibly a future measure as limit previously announced VAT registration limit set at £85,000 for 2 years from 01/04/2018.
I am expecting more anti Avoidance Measures for those not prepared to pay the “right amount of tax”.
Pensions Tax relief could be cut for those earning More than £150,000; I am expecting higher tax payers to have to be pay more tax in some shape or form.
Possibly reduction in Capital gains Tax Allowances for the Wealthy.
IR35 rules which changed in the public sector – may be extended to the Private sector – April 2019 or 2020. I expect more tax to be levied against the “Self-employed” as it seems to be viewed that self-employment is being “used incorrectly”.
Some changes to Lifetime ISA’s and Employee Share Schemes to encourage investment.
Insurance Premium tax rise – currently 12% (increased from 6%) but lower that VAT 20%.
Mr Hammond announced in his party conference speech that he intended to impose a new “digital services tax”. Possibly with deferred implementation.
If you have any concerns or need advice, do not hesitate to contact Paul Adams, Branston Adams Accountants and Business Advisors on 01252 728598.