News and facts

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If you would like to discuss how My Business Centre can help you and your business, then please call Fiona on 01392 590068 for the Exeter and Crediton area or Claire on 01837 55482 for the Okehampton and Tavistock area.

Autumn Statement - November 2016

The Autumn Statement and the Spring Budget are being abolished….but the Autumn Budget and Spring Statement are being introduced.  As a result, we can look forward to two Budgets in 2017 but with the promise of future years only containing one where significant changes are announced….phew!

National living wage

For those aged 25 or over, the national living wage will increase from £7.20 to £7.50 per hour with effect from April 2017.

National minimum wage

The government has also announced the new national minimum wage rates that will apply from April 2017 will be as follows:

  • 21 to 24 year old: £7.05 per hour
  • 18 to 20 year olds: £5.60 per hour
  • 16 to 17 year olds: £4.05 per hour
  • apprentices: £3.50 per hour.

VAT flat rate scheme

The chancellor announced the introduction of a new 16.5% flat rate of VAT for ‘businesses with limited costs'.

From 1 April 2017, businesses will be required to determine whether they meet the definition of a limited cost trader at the same time as establishing their applicable VAT rate, based on their trade sector. This also applies to existing users of the VAT flat rate scheme.

A limited cost trader will be one whose VAT inclusive expenditure on goods is either:

  • less than 2% of their VAT inclusive turnover in a prescribed accounting period
  • greater than 2% of their VAT inclusive turnover but less than £1,000 per annum

Income tax  

The personal allowance for 2017/18 will increase by £500 to £11,500 and the higher rate threshold to £45,000. 

The intention is for the personal allowance to increase to £12,500 and the higher rate threshold to £50,000 by the end of this parliament. 

Property and trading income

As announced at Budget 2016, there are to be 2 new income tax allowances of £1,000 each for trading and property income. Individuals with trading income or property income below the level of the allowance will no longer need to declare or pay tax on that income. 

Pensions and savings 

The ISA limit will be increased to £20,000 from 6 April 2017.

The band of savings income that is taxed at the starting rate of 0% will remain at £5,000 in 2017/18.

A new 3-year investment bond will be introduced from spring 2017, with an indicative rate of 2.2%. The bond will offer the flexibility to save between £100 and £3,000 and will be available to those aged 16 or over.

Other

Rural rate relief 100% - to remove the inconsistency between rural rate relief and small business rate relief, rural rate relief will double to 100% from 1 April 2017.

Letting agency fees - the costs of letting agency fees are being passed from the tenant to landlords, another cost for landlords to weigh up in their changing tax landscape.

National Insurance contributions - the starting threshold for employee and employer National Insurance bands will be aligned from April 2017, at no cost to employees but an additional cost of £7.18 per employee per year for the employer.

 

See our Tax Card for some of the most commonly used rates.

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Exeter Office

13 Dix's Field, Southernhay,
Exeter, Devon, EX1 1QA

Phone: 01392 590068

Opening Hours: Monday to Friday 8.30am to 4.30pm

Okehampton Office

Jacob's Pool House, 11 West Street,
Okehampton, Devon, EX20 1HQ

Phone: 01837 55482

Opening Hours: Monday to Friday 9am to 5pm