This April sees the personal allowance increase to £11,500 and the higher rate income tax threshold to £45,000. The Treasury says this means the amount someone can earn tax-free in 2017-18 will be over 75 per cent higher than in 2010.
How will this affect me? This is good news for employees of SMEs, as they will take home more of their monthly salary than in the previous tax year. Businesses will need to ensure they have the correct tax code for their employees.
Keeping in line with Philip Hammond?s Autumn Statement pledge, the National Living Wage is set to rise to £7.50 an hour from April 2017.
How will this affect me? SMEs will need to ensure they are paying all employees the correct new hourly wage from 6 April 2017.
From April 2017 the entry threshold for the cash basis will increase from £83,000 to £150,000.
How will this affect me? The measure will increase the cash basis entry threshold to give more SMEs the choice to benefit from the cash basis simplification, which is an optional and simplified method for calculating taxable profits for trading businesses with straightforward tax affairs.
Corporation tax is set to fall from 20 per cent to 19 per cent this year, and again to 17 per cent in 2020. Based on legislated plans, the UK will have the lowest corporation tax rate in the G20.
How will this affect me? As a business owner, you will be paying less in corporation tax than the previous tax year.
For businesses subjected to the increased in business rates from April 2017, there is some relief in the form of £435 million to support businesses affected by the business rates relief revaluation. Funding for local authorities will allow them to provide £300 million of discretionary relief to deliver help to businesses most affected by the revaluation. From April 2017, pubs with a rateable value up to £100,000 will be able to claim a £1,000 business rates discount for one year.
How will this affect me? No small business that is coming out of small business rates relief will pay more than £600 more in business rates this year than they did in 2016-17.
Free Webinars Anyone?
We've put together a brand new list of FREE upcoming webinars that you can access. Take a look below to see if any of them are of interest:
- Monday 24th April 10.00 - 11.00 - HMRC: CASH BASIS FOR THE SELF EMPLOYED
- Tuesday 25th April, 14.00 - 15.00 - SOCIAL MEDIA FOR BUSINESS
- Tuesday 2nd May, 13.00 - 14.00 - SELF EMPLOYMENT & HMRC: GETTING STARTED
- Thursday 4th May, 10.00 - 10.30 - BLOGGING FOR BEGINNERS
5-Minute Lesson - Registering with HMRC
- Go to gov.uk and complete the online form CWF1 - you should receive your UTR within 2 weeks
- Once you receive it, register for your Government Gateway account and receive a one-time use activation code in the post
- Activate the service to gain access to file your Self Assessment tax return online
- If you experience problems with HMRC online service, call the Online Services Helpdesk on 0300 200 3600
Further Information: 0191 587 8137