Earlier this month we saw Philip Hammond deliver his first Spring Statement. During the short 30 minute speech, the chancellor updated on the progress made since the 2017 Autumn Budget and launched a number of forthcoming consultations. Of the 13 consultation papers that are set start this year, here are five of the key consultations that are most relevant to you:
- VAT Registration Threshold – A review has been launched into the design of the VAT threshold, amid concerns it may be preventing small businesses from growing beyond a £85,000 turnover.
- Self-Funded Work Training – The Government is calling for views on extending tax reliefs for self-employed and employed people who fund their own training.
- Business Rates Revaluation Brought Forward – The Government has announced it will bring forward the next property revaluation for business rates from 2022 to 2021. This follows the decision from the Autumn Budget 2017 to hold revaluations more frequently.
- Tax on Digital Multinationals – After consulting on the corporate tax system for digital multinational businesses, the Government has published its views on how such businesses can be taxed fairly.
- Cashless and Digital Payments – This is a call for evidence on the transition from cash to digital payments and its impact on different sectors.
Some businesses and industry groups felt the Spring Statement was a ‘missed opportunity’, with there no mention of the increases in the personal allowance and basic rate band to pass on savings to stretched taxpayers.
However, we were told that the economy is growing and that the Office for Budget Responsibility (OBR) has increased its forecast for growth for this year and GDP now forecasted to be 1.5% in 2018 and 1.3% in 2019 and 2020.
With proposed changes to IR35 announced in the 2017 Autumn Statement, we kept a keen eye out for any mention in the consultation papers and whilst it wasn’t specifically included there has been a consultation confirmed that will is due to be published in the coming months.
Notably, borrowing and debt are also reducing so that during 2018/19 the country will run on a small surplus. The rate of unemployment is also down and the OBR expects inflation to fall over the next 12 months.
A copy of our full review of the Spring Statement can be found here. For more information on how the changes may affect you, then please contact your local Champion office.
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