Today the Chancellor announced the Spring Statement, which is essentially like a mini-budget. He outlined some new tax changes as well as anticipating changes coming in the future. Please note that this post may be updated overnight as further information becomes available.
Personal Tax Changes
The Chancellor announced two big changes to personal tax.
Business Tax Changes
|Fuel Duty||The tax on fuel is reducing by 5p per litre.|
|Employment Allowance||Rising from £4000 to £5000 a year.||This will mean it is cheaper to employ people as the government covers the first £5000 of employer national insurance contributions.|
|Business Rate Discount||The planned 50% cut in business rates for retail, hospitality and leisure will come in.|
|National Insurance Costs||The planned 1.25% rise in Employer and Employee National Insurance contributions will still go ahead.||This raises Employers National Insurance from 13.8% to 15.05% and Employee National Insurance from 12% to 13.25%.|
|Dividends Tax||The planned 1.25% rise in the Dividends Tax will still go ahead.||The £2000 allowance stays but dividends will now be taxed at 8.25% for basic rate taxpayers.|
|Economic Growth||Forecasts cut from 6% to 3.8%.|
|Minimum Wage Rise||The National Living Wage will rise to £9.50 per hour. The Minimum Wage and Apprenticeship Rates will also rise.||For more info see – https://www.gov.uk/national-minimum-wage-rates|
|Vat on Hospitality||The VAT rate on hospitality will return to 20%.|
|Autumn Budget Plans||The Government look at tax reforms on training, R&D, and capital allowances and announce new measures in the Autumn Budget.|
|5 year Vat Relief on energy efficiency measures||The VAT rate on energy efficiency measures like insulation, solar panels, heat pumps e.t.c. will be cut to 0% for the next 5 years.|
|£5000 grants for Heat Pumps to replace boilers||£5000 grant available towards the cost of installing a heat pump to replace a boiler.|
|Doubling Household Support Grant||£500 million extra given to local councils to help local people struggling with energy bills.|