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budget day 2018

Branston Adams Accountants

Paul Adams spoke on his predictions: 

 

Pre Budget Press Release

Three aspects of the timing are unusual:

  • Earlier in the year than normal, presumably to avoid clashing with the final stage of Brexit negotiations in November.
  • Budget is being presented on a Monday (first time since 1962), normally it is a Wednesday after Prime Minister's Questions. This year that would mean it would fall on Halloween - a gift to headline writers - government denies that was a factor in choosing the day.
  • Chancellor will start speaking about 15:30 GMT, three hours later than usual. Parliamentary business starts later on a Monday giving MPs time to travel to London from their constituencies.

Thoughts and Forecast

What we know

  • The government has committed to finding an extra £20bn for the NHS by 2023. Ministers have indicated it will be partly funded by tax rises.
  • Mrs May also said that the borrowing cap for local councils wanting to build new homes will be scrapped, potentially adding to the national debt.
  • At the party conference Mrs May stated that she was extending the duty freeze for a ninth year in a row.
  • Class 2 NIC continuing.
  • The last scheduled Budget before Brexit.

So What could happen

  • Increases in so called Sin taxes – duty on Cigarettes and Alcohol. 
  • Increase in personal Allowance - at the 2017 election that the thresholds would rise to £12,500 by 2020. Could be deferred.
  • Increase in starting rate for 40% tax - at the 2017 election that the thresholds would rise to £50,000 by 2020. Could be deferred.
  • VAT registration limited reduction – possibly a future measure as limit previously announced VAT registration limit set at £85,000 for 2 years from 01/04/2018.
  • I am expecting more anti Avoidance Measures for those not prepared to pay the “right amount of tax”.
  • Pensions Tax relief could be cut for those earning More than £150,000; I am expecting higher tax payers to have to be pay more tax in some shape or form.
  • Possibly reduction in Capital gains Tax Allowances for the Wealthy. 
  • IR35 rules which changed in the public sector – may be extended to the Private sector – April 2019 or 2020. I expect more tax to be levied against the “Self-employed” as it seems to be viewed that self-employment is being “used incorrectly”.
  • Some changes to Lifetime ISA's and Employee Share Schemes to encourage investment.
  • Insurance Premium tax rise – currently 12% (increased from 6%) but lower that VAT 20%.
  • Mr Hammond announced in his party conference speech that he intended to impose a new “digital services tax”. Possibly with deferred implementation

 

Biz Awards 17 Branston Adams

Branston Adams Tax Accountancy- Episode 4: Budget Day!

Biz spoke to Paul Adams from Branston Adams Tax Accountancy and he spoke all about Budget Day!