There were no new tax measures and no spending changes in the Chancellor’s first Spring Statement. The Office for Budget Responsibility (OBR) trimmed its projections for government borrowing, but Mr Hammond simply banked the savings for his Autumn Budget. Spending will be subject to a detailed review in 2019.
While the Chancellor appeared to say little, his statement was followed by the publication of a range of documents covering areas including:
- Entrepreneur’s relief A consultation paper was published on how to give entrepreneurs’ relief in circumstances where it would otherwise be lost because of a new share issue.
- VAT threshold The government issued a call for evidence on restructuring the VAT registration threshold to offer more incentives for small businesses to grow. There is some evidence that businesses deliberately limit growth to avoid crossing the existing £85,000 threshold (which has been frozen for the next two years).
- Tax and the digital economy There were several papers examining taxation issues surrounding the digital economy, including VAT and income tax leakage through internet trading platforms.
- Self-funded work-related training A consultation paper was published examining how to extend the existing tax relief framework to self-funded work-related training by employees and the self-employed.
- English business rates The next revaluation of business property in England will be brought forward one year to 2021, with three-yearly revaluations thereafter.
Many of these documents will eventually result in legislation, but that does not mean no tax changes in the interim. The impact of last November’s Budget (and some earlier measures) will soon be felt with the start of the new tax year.
2018/2019 Tax Tables
Our new Tax Tables for the 2018/19 tax year are up-to-date with everything announced in the Spring Statement, giving you all the key numbers in one place.
Key changes for the forthcoming 2018/19 tax year include:
- Increases to the personal allowance, and basic and higher rate tax thresholds.
- New income tax bands and rates for Scotland.
- A cut in the dividend tax allowance from £5,000 to £2,000.
- Revised company car tax scales, with an increase in the diesel levy.
- The first increase in the lifetime allowance since 2010.
- An increase in the maximum tax relievable investment in Enterprise Investment Schemes.
If you have any questions about the contents of our Tax Tables or how any aspects of your tax and financial planning may be affected by the Budget, please call us to discuss them.