Chancellor’s Budget U-turn on NIC rises
In the budget Chancellor Phillip Hammond announced that he would be raising Class 4 national insurance contributions. However, after much debate the Chancellor has scrapped the increases, citing that it could be seen as breaking election promises.
2016 Autumn Statement
Mr Hammond started with lists of figures for GDP growth and borrowing. As usual, there were references in the speech to matters that were covered in more depth in the documents released on the internet. This report explains the more significant announcements on tax and also includes a reminder of some of the measures that are coming into effect in the near future after having been announced some time ago.
Personal Income Tax
Tax rates and allowances (Table A)
As previously announced, from 6th April 2016 the Personal Allowance is
increased to £11,000 and the rate at which higher rate tax becomes payable
to £43,000. Basic rate taxpayers also receive a savings allowance of £1,000
(£500 for higher rate taxpayers), which will tax interest income at 0%.
The basic rate of tax remains at 20%, the higher rate at 40% and the
additional rate at 45%.
The first £5,000 of taxable dividend income is taxed at a zero rate.
Thereafter, dividends are taxed at 7.5% on basic rate taxpayers, 32.5%
on higher rate taxpayers and 38.1% on additional rate taxpayers. With the
abolition of the dividend tax credit, these changes mean that taxpayers who
run their business through a limited company, taking minimum salary and
maximum dividends, will pay significantly more tax on dividends in 2016/17.
CHILD BENEFIT CHARGE
You will probably be aware that from January 2013 the Government is implementing the Child Benefit Charge for those with “high” income. This will mean that Child Benefit will effectively be withdrawn gradually from those where one parent/child carer or their partner has taxable income of more than £50,000, and withdrawn entirely from those families where taxable income of one parent/child carer or their partner is more than £60,000 per annum.
iXBRL-Changes to the Way Company Accounts are submitted to HM Revenue & Customs (HMRC) - what you need to know
iXBRL update February 2012
Further to the paragraph contained in the above article entitled ‘How much will this cost me’. Following a review of the time required to tag corporate accounts using the compulsory iXBRL (inline eXtensible Business Reporting Language) as required by HMRC, it has been decided that no additional cost will be levied on the client at this time.