A breakdown of the Autumn Budget 2017 tax changes
As 2017 draws to a close and 2018 is almost upon us, we’re faced with the after-effects of the autumn statement 2017 and how the changes will impact organisations and individuals over the next year.
Whilst some of the tax changes were implemented immediately, many are due to come into action 2018 and some even later. So to help you and your organisation streamline your finances and prepare for the future, we’ve delved deeper into the autumn statement tax changes to be mindful of.
Autumn Statement Tax Allowance
- In the autumn budget 2017, it was announced that the basic personal allowance threshold will be raised from £11,500 to £11,850 in 2018/19, and will be £12,500 by 2020.
- The higher rate tax threshold will also increase from £45,000 to £46,350 in 2018/19, and will be at £50,000 by 2020.
Taxes on Employee Business Expenses
- In 2018, the Government will consider extending the scope of tax reliefs on work-related training costs.
- Employers no longer have to check receipts when reimbursing necessities using benchmark scale rates.
- Further guidance will be provided on the process for claiming unreimbursed employment expenses.
Autumn Statement Tax Credits
- Research and development expenditure credits raised to 12% from 11% to support business investment.
- The first year tax credit scheme will be extended until the end of the current government. This is to ensure loss-making companies are still investing in energy-efficient technologies.
- Corporation tax will stay at 19% until 2019, and will lower to 17% by 2020.
- Fuel duty will remain frozen in 2018/19.
- Vehicle excise duty supplement to be introduced in April 2018.
- The company car tax diesel supplement will be increased from 3% to 4% in April 2018.
- Air passenger duty will remain frozen.
Alcohol and Tobacco Duty
- A new duty band will be introduced to target white ciders.
- Tobacco duty will rise by 2 points above RPI inflation until the end of the current Parliament.
- The minimum excise tax will rise to £280.15 per 1000 cigarettes.
Stamp Duty Land Tax
- Stamp duty land tax abolished for first-time buyers purchasing houses priced at £300,000 and under.
Here at Alexander, our team of expert tax accountants can help you interpret the autumn statement 2017, ensure tax legislation compliance and maximise your wealth by reducing tax liabilities.