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CH Accountancy
CH Accountancy

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Autumn Statement - November 2016

The key points from yesterday's Statement are as follows:

  • The personal allowance will rise from £11,000 to £11,500, and the higher rate threshold will rise to £45,000 from April 17.  These wil increase to £12,500 and £50,000 by the end of Parliament
  • National Living Wage will rise from £7.20 per hour to £7.50 per hour in April 17
  • Tax savings on salary sacrafice schemes and benefits in kind are to be stopped - this does not include pensions, ultra-low emission cars, childcare or cycle to work schemes
  • Employee and Employer National Insurance thresholds will be equalised at £157 per week from April 17
  • A reminder that ISA limits will rise from £15,240 to £20,000 from April 17
  • Corporation tax is currently at 20%, this will be reduced to 19% on the 1st April 17, then to 17% on the 1st April 2020
  • There is a big change to the Flat Rate Scheme for VAT - a new 16.5% rate is introduced to businesses with limited costs, ie labour only businesses.  In reality this means that many service companies will no longer be able to benefit from the savings of the flat rate scheme and will be better off withdrawing from the scheme
  • The fuel duty rise has been cancelled
  • Insurance Premium Tax (IPT) will rise from 10% to 12% in June 17
  • The Universal Credit taper rate will be cut from 65% to 63% from April 17
  • Letting agents in England are being banned from charging upfront fees, which will be brought in as soon as possible
  • £2.3bn funding has been allocated to provide 100,000 new homes in high demand areas
  • £1.4bn has been allocated to deliver 40,000 extra affordable homes
The Chancellor also announced that the Budget in Spring 17 will be the last Spring budget.  It will now be moved to the Autumn, from 2017, and the Spring Budget will be replaced from 2018 by a statement responding to the OBR forecast.
If you'd like any further information on any of the points from yesterday's budget please do not hesitate to contact me.

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