Budget Statement 8th March 2017 - What Does it mean for your business?
Don't get left in the dark, find out what you need to know about the budget 2017.....
Phillip Hammond stood by his promise to reduce corporation Tax from 20% to 19% on 1st April 2017 with a further promise to reduce to 17% by 1st April 2020.
Business Rates Increase
Following the negative publicity surrounding the proposed business rate increases in England, £435m has been set aside to help those affected including £300m hardship fund for the worst hit.
As well as annual rate increases being capped at £600 annually for small businesses affected by losing small business rates relief, local authorities will also be able to offer an element of discretionary relief.
Pubs with rateable value of less than £100,000 to get a £1,000 discount on rates they would have paid for one year.
Reform of Loss Relief
From 1st April 2017 companies with brought forward losses can set these more flexibly against total taxable profits. Previously certain losses could only be used against certain income, for example, trading losses against trading income. However, companies can only carry forward losses up to 50% of the profit made in the year. This means companies who made substantial profit in a year can no longer eradicate tax completely with carried forward losses.
VAT registration and deregistration limits
From 1 April 2017:
Registration threshold increased to £85,000
Deregistration threshold increased to £83,000
Making Tax Digital
The proposed digitalisation of taxation that would mean most businesses, self-employed and landlords having to report to HMRC quarterly has been put back to 2019 for unincorporated businesses and landlords with turnover less than the VAT threshold.