So yesterday was the first Autumn statement by the new Chancellor, Philip Hammond and to be honest, it was a fairly “safe” statement with nothing really surprising in it.
These are the key points of note within Mr Hammond’s statement.
Income Tax Personal Allowances
- Personal Allowance to rise to £11,500 from 6 April 2017
- Higher rate tax threshold to rise to £45,000 from 6 April 2017
- The government is committed to raising the Income Tax Personal Allowance to £12,500 and the higher rate tax threshold to £50,000 by the end of the current parliament
- Tax savings on salary sacrifice and benefits in kind will be stopped, there are exceptions to this for pensions, childcare, ultra-low emission cars and cycling
- The government will also introduce new Income Tax allowances for trading and property income of £1,000 each. Those individuals who have trading or property income below £1,000 will no longer need to declare OR pay tax on that income
- The government reiterated that the 0% starting rate for savings income in 2017/18 will remain at £5,000.
- The government reaffirmed its commitment that Corporation Tax will be reduced to 17% by 2020
- Employee and employer National Insurance thresholds will become aligned from April 2017 at £157 per week (currently £155 and £156 respectively)
- National living wage will increase to £7.50 an hour from April 2017, up from the current £7.20 per hour
- Insurance premium tax will increase from 10% to 12% from June 2017
- Fuel duty will be frozen again, this is now the 7th year in a row that this has happened
- Working families will be eligible for 30 hours a week of free childcare for all 3 and 4 year olds from September
- New savings bonds through NS&I with a 2.2% interest rate over three years where savers can deposit up to £3,000, more details on this in next years budget.
For full details on the Autumn Statement follow the link below