Spring Budget highlights
- Business rates – SMEs, local authorities and pubs get some relief. There will also be a consultation on business rates reform before the next review (in 2022).
- NI up for Self Employed. The main rate of Class 4 National Insurance contributions for the self-employed to increase from 9% to 10% in April 2018 and 11% in April 2019
- Personal tax-free allowance up as predicted. The allowance is £11,500 this year, moving to £12,500 by 2020.
- An unexpected Dividend tax hit. The tax-free allowance on share dividends will reduce from £5,000 to £2,000 in April 2018
- UK’s growth and employment. The UK was confirmed to be the second-fastest growing economy in the G7 nations in 2016. The UK’s growth forecast this year was increased from 1.4% to 2%. Inflation was predicted to rise from 2.3% to 2.4% in 2017/18 and then subsequently fall to a sustainable 2.0% level. An additional 650,000 people were expected to be in employment by 2021.
For a more in depth review please go to http://www.bbc.co.uk/news/uk-politics-39203784.