The 2017 Autumn Budget & Small Business
The 2017 Autumn budget introduced a few changes impacting UK businesses. Though the changes are slight, changes such as business rate increases being inline with CPI and changing the time frame for businesses to translate over to online tax systems will help businesses in the coming years.
Mileage rates for landlords
Unincorporated property businesses will now be able to calculate their motoring costs for business related trips, making their tax calculations a touch easier. It should be noted though that this option is only available to landlords who are not in companies, or mixed partnerships (a partnership with both individual and non-individual members).
Making Tax Digital for Business
The government has amended the time frame of their MTD requirements, in order to make sure that small businesses have time to make proper arrangements.
In the new timeframe, by April of 2019, businesses above the VAT threshold will be required to use digital systems for VAT.
Income tax will not be mandated until at least 2020, and HMRC is currently working with software developers to determine functionality requirements for software.
Corporation tax becoming digital is yet to be introduced, though an announcement in early 2018 has been speculated.
National Living Wage and Minimum Wage increases
In April 2018, National Living Wage (NLW) and National Minimum Wage will increase as follows,
NLW £7.83/hour £7.50/hour
21-24 year olds £7.38/hour £7.05/hour
18-20 year olds £5.90/hour £5.60/hour
16-17 year olds £4.20/hour £4.05/hour
Apprentices £3.70/hour £3.50/hour
Business Rate to be in line with CPI rather than RPI
From April 2018, business rate increases will be set to rise in line with the Consumer Price Index, rather than the Retail Price Index.
This change is expected to save businesses money over the long ter, as the CPI typically rises at the lower rate than the RPI.
How we can help
At Optimum Office, we can help you make sure that all of your books are up to HMRC's standards, and ease the tax burden that all business owners feel. f your business still needs to prepare for Making Tax Digital for Business, we can help your business on to a digital bookkeeping and payment service, to make the transition as seamless as possible.