Welcome to our 2017 Budget Update

At AIMS we know that you are busy and we want to make sure that we give you only the tax and business information and tips that we think you really need. We don’t want to impress you with our knowledge and we don’t want to bombard you with all the details.

Every business is different, and every business owner has different requirements so we would be happy to discuss with you in detail if and how any of these latest updates in the Budget will affect you personally.

Remember we don’t charge by the hour so you can call your local accountant anytime. We focus on the numbers so you can focus on what is it important to you – running your business.

Too many Budgets?

The 2017 Spring Budget was the first of two this year. The Chancellor did say that he was leaving some things alone “in view of the Autumn Budget” so we are limiting this Update to the things we think are important to you.

National Insurance Contributions

National Insurance Contributions for the self-employed will increase by 1% to 10% from 5 April 2018 and by a further 1% to 11% from 5 April 2019.

Small Business Rates Relief

Businesses losing entitlement to Small Business Rates Relief because of the forthcoming rating revaluation will have their Business Rate increases limited to the greater of £600 or the existing transitional relief cap.

For 2017/2018 only the operators of pubs with a rateable value of up to £100,000 will be given a £1,000 discount on their Business Rates bills.

Dividends

The dividend allowance of £5,000 introduced with effect from 5 April 2016 will be short-lived, it is to be reduced to £2,000 from 5 April 2018.

VAT threshold

From 1 April 2017, the VAT registration threshold will increase from £83,000 to £85,000 and the deregistration threshold from £81,000 to £83,000.

Making Tax Digital

We now know that businesses and landlords with a turnover below the VAT registration thresholds will be able to delay entering the Making Tax Digital regime until April 2019.

VAT Flat Rate Scheme – Reminder and update

From 1 April 2017, there will be a new 16.5% rate for "limited cost traders". A limited cost trader is one who spends less than 2% of VAT inclusive turnover or if they spend more than 2% less than £1,000 a year on goods.

Goods must be used exclusively for the purpose of the business but exclude:

  • capital expenditure
  • food or drink for consumption by the flat rate business or its employees
  • vehicles, vehicle parts and fuel (except where the business is one that carries out transport services - for example a taxi business - and uses its own or a leased vehicle to carry out those services)
  • goods for resale, leasing, letting or hiring out if the main business activity doesn’t ordinarily consist of selling, leasing, letting or hiring out such goods
  • goods for disposal as promotional items, gifts or donations

There will be provisions to prevent anyone gaining an advantage by invoicing or receiving payment for a supply made after 1 April 2017 before that date.

About AIMS

We are a market leader in core accountancy and taxation services for small, local and independent businesses, established for 25 years and with over 200 qualified accountants nationwide.

Our success is down to our clear focus on our clients, our systems and our accountants - our accountants are personally responsible for each client, ensuring a personable and quality service guaranteed.

AIMS accountants have the knowledge and expertise in all areas of accounting and tax, we do what you expect an accountant to do and we do it well.

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