The final Spring Budget will be on Wednesday 8th March and will be marked down in history as the last time we have a budget this time of the year. In future years, there will only be one budget and this will be in the autumn.
So what has the chancellor got in mind for us?
He will be greatly encouraged by the strength of the UK economy since the decision was taken to leave the European Union. On the other hand, he will be cautious knowing that Article 50 is about to be invoked. The UK has enjoyed the positive features of making the decision to leave the EU, without actually leaving. We now enter a period of uncertainty as we begin the journey out.
Making Tax Digital (MTD)
The Government are very keen to introduce this as quickly as is practical. However, it is hoped that the Chancellor will make changes on the de minimis limits where an individual is caught by the need to register automatically. The current proposals require you to register for (MTD) if you have an income of £10,000 or more which is not taxed at source. This means that if you had one rental property which had a gross income of £10,000 you would have to register under (MTD). The requirements of making tax digital are onerous, as you will have to file four tax returns a year.
We hope the chancellor will have listened to dissenting voices and increase the de minimis figure to the vat threshold.
It is likely that the Government will be issuing proposals to remove the £30,000 tax free status of these payments. We would expect the government to now provide the detail
of how they intend to change the rules in respect of these payments.
Review of the valuation of benefits-in-kind
As announced at the Autumn Statement 2016, the government will consider how benefits in kind are valued for tax purposes. The government will publish at the Budget 2017 a call for evidence on the valuation of benefits in kind, and additionally a consultation on employer-provided living accommodation.
Flat Rate Vat
The government will be making major changes to the flat rate vat scheme so if you are supplying labour only services you will be paying a much higher flat rate vat rate.
Please seek our advice if in doubt about whether the new rules apply to you.
Finally, those running a business who may be facing an increase in business rates will be hoping that the chancellor will bring in something to help them with transitional arrangements which will cover any major increases in their business rates increase.