Please look at the list above and pick the subjects that you feel are relevant to you. A brief explanation of what the Government plans to do for each topic is listed below.
- Income Tax
- Pension Scams
- Salary Sacrifice
- National Insurance
- ISA’s and the ISA for the under 40’s
- NS&I Savings Bond
- Insurance Premium Tax
- National Living Wage
- New Childcare Scheme
- Corporation Tax
1 Income Tax – Personal allowance and Tax bands
The changes to the levels of Personal Allowances and tax bands that will apply from April 2017 (tax year 2017/18):
The tax-free Personal Allowance is being increased to £11,500.
For higher rate taxpayers, the Government will also increase the threshold above which higher earners start paying 40% tax. It will increase to £45,000 in 2017-18.
The Government is committed to raising the Personal Allowance to £12,500 and the higher rate threshold to £50,000 by the end of this parliament.
Once the Personal Allowance reaches £12,500, the Government have said that it will increase in line with inflation.
2 Pension Scams –
The Government is looking to ban pension cold calling, in an attempt to tackle pension scams. A consultation on this will be launched next year.
3 Salary Sacrifice
The Government raised concerns over the growth of salary sacrifice last year. This is when employees opt to give up salary in exchange for a higher employer pension contribution, or other workplace benefits. Both the employer and employee make National Insurance savings. They have now decided that, from April 2017, most non-cash benefits such as health screening checks, gym membership and mobile contracts received through salary sacrifice schemes will be taxed as cash income.
EXEMPTIONS FROM THE CHANGES ARE:
- childcare vouchers
- cycle-to-work schemes
- cars with CO2 emissions of up to 75g/km.
WHEN THE CHANGES ARE PLANNED:
- all salary sacrifice arrangements in place before April 2017 can remain until April 2018
- arrangements for non-low emission cars, accommodation and school fees in place before April 2017 will be protected until April 2021.
4 National Insurance
Both employers and employees will start paying National Insurance contributions on weekly earnings over £157 from April 2017.
The ISA subscription limit is being increased to £20,000 with effect from 6 April 2017.
ISA’s for the under 40’s
As announced in this year’s Budget, the new Lifetime ISA will be available in April 2017, providing those aged 18-40 with a new way to save for their retirement or to buy their first home. Every £4 saved into the Lifetime ISA will receive a £1 top-up from the Government. The maximum saving will be £4,000 year which would mean an extra £1,000 from the Government.
6 NS&I Savings Bond
NS&I will offer a new 3 year Investment Bond with an indicative rate of 2.2% from spring 2017. Savings of between £100 and £3,000 can be made to savers aged 16 or over.*
This is expected to boost savings, following the recent drop in interest rates. While the rate of 2.2% is only indicative, and will be fixed when the bond is launched, it would represent one of the highest rates in the market currently.*
7 Insurance Premium Tax
Insurance Premium Tax (IPT) will rise from 10% to 12% from 1st June 2017. The cost of insurance premiums for cars, homes and private medical cover will rise, with people who have the highest insurance costs paying the highest IPT.
8 National Living Wage
The National Living Wage will rise from £7.20 to £7.50 per hour from April 2017 for those aged 25 and over.
Full time workers who are currently on the National Living Wage will earn an extra £500 per year*.
9 New Childcare Scheme
Working families will be entitled to 30 hours of free childcare per week for all 3 and 4 year olds from September 2017. The Government will also begin to introduce tax-free childcare across Britain next year.
The new tax-free childcare scheme could represent a saving of up to £2,000 per child*.
10 Corporation Tax
Corporation Tax will reduce to 19% from April 2017. The Government also intends to cut Corporation Tax to 17% by 2020
*Source: Autumn Statement and gov.uk 23rd November 2016
And finally, this will be the last autumn statement as the Chancellor announced the Budget will be in the autumn.
There will be Spring Statements from 2018, but these will not involve any major fiscal changes.
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