The Chancellor's 2018 Spring Statement gave the government the opportunity to consider the longer-term fiscal challenges ahead of Brexit, and initiate consultations on how these can be addressed.

Following this, we have put together a PDF which provides an overview of the updated forecasts for the UK economy and public finances, which we trust you will find useful, to download click the following link Ullyot_2018_spring_statement.pdf

It summarizes the main announcements that may affect you and your business.

For further advice, please contact me.

Sam Ullyott.

This Report, which was written immediately after the Chancellor of the Exchequer delivered his Budget Speech, is intended to provide an overview of the latest announcements and recent measures most likely to affect you or your business. To view more analysis click here

The report will open in a new window, please close the window when you are finished to return to the Ullyott main site.

The 2017 Autumn Budget represents the first step in the government’s new Budget regime, which sees the main Budget now being presented in the Autumn, to be followed by a Spring Statement the following year.

Hammond heralds vision of an ‘outward looking, free-trading nation’

Chancellor Philip Hammond’s first Autumn Budget was delivered against a backdrop of economic and political uncertainty, fuelled partly by the ongoing Brexit process.

Acknowledging that the UK has entered a ‘critical phase’ of negotiations, the Chancellor set out his vision of a ‘new relationship’ with the European Union – though he was keen to emphasise the need to prepare for ‘every possible Brexit outcome’, announcing that £3bn had been set aside for Brexit preparations.

While asserting that the economy ‘continues to confound those who talk it down’, the Chancellor revealed that the Office for Budget Responsibility has revised down UK economic growth for the next five years, with the economy expected to grow by 1.5% in 2017. Debt is also expected to reach a peak this year, reducing gradually thereafter as a share of GDP, while borrowing forecasts have also been revised downwards.

Technology and housing proved to be a key focus of the speech, with the Chancellor announcing a package of support for electric vehicles, including £400m for new charging points, and a £44bn investment fund to support the government’s target of building an average of 300,000 new homes every year, over the next five years. The government will also make changes to the planning system to ‘encourage better use of land in cities and towns’.

There was also some good news for first-time buyers, as the Chancellor revealed that any seeking to buy a property worth up to £300,000 will be exempt from paying Stamp Duty Land Tax with immediate effect. Meanwhile, the income tax personal allowance will increase to £11,850 from April 2018, with the higher rate threshold rising to £34,500.

Although making a feature of his resistance to reducing the VAT registration threshold, the Chancellor did address the issue of business rates, announcing that firms being affected by the so-called ‘staircase tax’ could apply to have their bills recalculated and backdated, and that future revaluations will take place every three years.

Finally, entering at least partially into the festive spirit, the Chancellor announced that duty on most alcoholic drinks will be frozen, although a new band of duty will be introduced in 2019 for certain higher strength ciders.

Budget Highlights

  • Stamp Duty Land Tax abolished for most first-time buyers
  • Personal allowance increasing to £11,850
  • Business rates to rise by CPI inflation from April 2018
  • VAT registration threshold frozen for two years
  • RDEC tax credit increasing to 12% from January 2018
  • National Living Wage to rise to £7.83
  • Increase in VED for the most polluting diesel cars

We can help to ensure that your financial plans remain effective, even as your personal and business circumstances change. We will work alongside you to help you to achieve a rewarding and financially secure future.

Please note: while most taxation changes take effect from the start of the new financial year, or tax year, some may not take effect until 2019, or later. Where relevant, details of these changes have been included in this Report.


Please note: while most taxation changes take effect from the start of the financial year, or tax year, some may not take effect until 2017, or later. Where relevant, details of these changes have been included in this Report.
To view more analysis click here

The report will open in a new window, please close the window when you are finished to return to the Ullyott main site.

Final Spring Budget sets the stage for ‘Britain’s global future’

Chancellor Philip Hammond presented his first – and last – Spring Budget to the House of Commons in belligerent form.

(To view more detailed analysis in our budget analysis mini web site, which will open in a new window, click here)

Despite revealing upgraded forecasts from the Office for Budget Responsibility, the Chancellor announced that he would adhere to the government’s new fiscal plan, with the stated aim of preparing Britain for a ‘global future’. UK economic growth is now expected to reach 2% in 2017, before falling to 1.6% in 2018. Public sector net borrowing has been revised down to £51.7bn for 2016/17 and £58.3bn for 2017/18.

With Brexit approaching, the Chancellor announced a number of significant measures for UK businesses. These include a £435m package for firms in England affected by the business rates revaluation, with a cap on rate rises for those losing existing business rates relief and a £300m local authority 'hardship fund'.

As the government’s flagship Making Tax Digital initiative draws closer, there was also some good news for smaller firms, with the announcement that unincorporated businesses and landlords with turnover below the VAT registration threshold will have until 2019 to prepare for quarterly reporting.

However, a less welcome measure for the self-employed will see the main rate of Class 4 national insurance contributions (NICs) increasing to 10% in April 2018 and 11% in April 2019. Meanwhile, shareholders and directors of small private firms will see a significant reduction in the tax-free dividend allowance, which will fall from £5,000 to £2,000 in April 2018.

Keen to address the UK skills gap, the Chancellor announced the introduction of new ‘T-Levels’ for 16-19 year olds studying technical subjects from Autumn 2019, as well as funding for 110 new free schools.

The Chancellor also confirmed previously announced measures for individuals, including the introduction of the new Tax-Free Childcare scheme, a three-year NS&I Investment Bond and the new Lifetime ISA.

Alcohol duties will increase in line with inflation, while duty on tobacco will increase by 2% above RPI inflation. The main rate of the new Soft Drinks Industry Levy, or ‘sugar tax’, will be set at 18p per litre.

Under the Chancellor’s new timetable, the next Budget will be held in the autumn, followed by a Spring Statement in 2018.

Budget Highlights

  • £435m business rates support package
  • Class 4 NICs to rise to 10% in 2018
  • Tax-free dividend allowance to reduce to £2,000
  • Digital reporting delayed for some smaller businesses
  • New NS&I Investment Bond offering 2.2% on up to £3,000

 

To view more detailed analysis in our budget mini web site click here