Autumn Budget 2018 - Budget summary for small businesses

429
Views
The Chancellor confirmed that the Government would meet its manifesto pledge of raising the personal tax allowance to £12,500 and the basic rate threshold to £50,000 within the current parliamentary term. These increases will take effect from April 2019 - a year earlier than originally planned - and will be maintained in 2020.
 
Announcements affecting businesses include an increase in the Annual Investment Allowance (AIA) from £200,000 to £1 million for two years until January 2019. Also, from October 2018, businesses will be able to deduct 2% of the cost of any new non-residential structures and buildings from their profits before they pay tax.
 
Following strong lobbying against a possible abolition of entrepreneurs’ relief, the Chancellor committed to retaining it for the present time. However, in a bid to support longer-term business investments, from 6 April 2019, the minimum period throughout which the qualifying conditions for relief must be met will be extended from 12 months to 24 months.
 
Many experts expected the Budget to include proposals for changes to the existing IR35 rules. The Chancellor announced that IR35 off-payroll working rules, which have already been introduced for the public sector, will be extended to the private sector. However, in response to representations made during the consultation earlier this year, implementation will be delayed until April 2020 and will only apply to large and medium sized businesses. Under the reforms, responsibility for operating the off-payroll working rules will move from individuals to the organisation, agency or other third party engaging the worker. According to HMRC, small organisations will be exempt, minimising administrative burdens for the vast majority of engagers and HMRC will provide support and guidance to medium and large organisations ahead of implementation.
Rate:
 
Added By: Sue Taylor on 01st Nov 2018 - 12:38
Last Updated: 01st Nov 2018 - 20:24

Number of Views: 429
Got A Question?

If our news items leave you with a question you need answering, let us know using one of the following:

  1. Call us on 01252 522221
  2. Email us
  3. Use our enquiry form
  4. Use the comments form below

We're happy to help.