Autumn Budget 2017: 25 things you need to know

Autumn Budget 2017: 25 things you need to know

1. There are over 32 million people in work – near a record high
The rise in employment over the past year has been driven by full time workers. Unemployment is also at its lowest rate since 1975.

In 2017 growth has remained solid, but slowed slightly at the start of the year. The UK economy is forecast to grow by 1.5% in 2017. It will then grow at a slightly slower rate in the next three years, before picking up in 2021 and 2022.

Inflation is forecast to peak at 3% in the final months of this year, as measured by the Consumer Prices Index (CPI). It will then fall towards the target of 2% over the next year.

2. Borrowing has fallen by three quarters since 2010, but debt is still high
In 2009-10 the UK borrowed £1 in every £4 that was spent. Last year it was £1 in every £16.

The fall in borrowing means we are adding less to our debt every year. However the UK still has a debt of over £1.7 trillion – around £65,000 for every household in the country.

3. An extra £3 billion to prepare for Brexit over the next two years
The money will make sure the government is ready on day 1 of exit. It will include funding to prepare the border, the future immigration system and new trade relationships.

4. £6.3 billion of new funding for the NHS
£3.5 billion will be invested in upgrading NHS buildings and improving care.

£2.8 billion will go towards improving A&E performance, reducing waiting times for patients, and treating more people this winter.

5. Abolishing stamp duty land tax (SDLT) on homes under £300,000 for first-time buyers from 22 November
95% of first-time buyers who pay stamp duty will benefit.

First-time buyers of homes worth between £300,000 and £500,000 will not pay stamp duty on the first £300,000. They will pay the normal rates of stamp duty on the price above that. This will save £1,660‎ on the average first-time buyer property.

80% of people buying their first home will pay no stamp duty.

There will be no relief for those buying properties over £500,000.

6. 300,000 new homes a year, an amount not achieved since 1970
£15.3 billion new financial support for house building over the next five years – taking the total to at least £44 billion. This includes £1.2 billion for the government to buy land to build more homes, and £2.7 billion for infrastructure that will support housing.

The government will also create 5 new ‘garden’ towns.

Changes to the planning system will encourage better use of land in cities and towns. This means more homes can be built while protecting the green belt.

7. The National Living Wage and the National Minimum Wage will increase from April 2018
The National Living Wage for those aged 25 and over will increase from £7.50 per hour to £7.83 per hour from April 2018. Over 2 million people are expected to benefit. For a full-time worker, it represents a pay rise of over £600 a year.

The National Minimum Wage will also increase:

21 to 24 year olds
18 to 20 year olds
16 and 17 year olds

Apprentices
£7.38 per hour
£5.90 per hour
£4.20 per hour
£3.70 per hour

8. The tax-free personal allowance will rise with inflation to £11,850 from April 2018
The personal allowance – the amount you earn before you start paying income tax – will rise from £11,500 to £11,850. This means that in 2018-19, a typical taxpayer will pay £1,075 less income tax than in 2010-11.

9. Fuel duty will remain frozen for an eighth year
In 2018, fuel duty will remain frozen for the eighth year in a row, saving drivers £160 a year on average.

10. A new railcard for those aged 26 to 30
The government will work with the rail industry on a new railcard which will be introduced from spring 2018.

11. Duty on beer, wine, cider and spirits will be frozen
The cost of a pint of beer or cider will be 1p lower than if duty had risen by inflation. The cost of a typical bottle of wine will be 6p cheaper.

Cheap, high-strength cider will be subject to a new band of duty.

12. Duty on tobacco will rise
The duty on cigarettes will increase by 2% above inflation. Hand-rolling tobacco duty will increase by 3% above inflation.

13. 95% of passengers will not see an increase in their Air Passenger Duty
Air Passenger Duty will be frozen for all economy passengers and all short-haul flights. It will rise for premium fares on long-haul flights, and on private jets.

14. Households applying for Universal Credit will get more upfront support
Households in need who qualify for Universal Credit will be able to access a month’s worth of support within five days, via an interest-free advance, from January 2018. This can be repaid over 12 months.

Claimants will be eligible for Universal Credit from the day they apply, rather than after seven days. Housing Benefit will continue to be paid for two weeks after a Universal Credit claim.

Low-income households in areas where private rents have been rising fastest will receive an extra £280 on average in Housing Benefit or Universal Credit.

15. Electric and driverless cars
The UK will set out rules so that self-driving cars can be tested without a safety operator.

An extra £100 million will go towards helping people buy battery electric cars. The government will also make sure all new homes are built with the right cables for electric car charge points.

16. The world’s first national advisory body for artificial intelligence (AI)
The Centre for Data Ethics and Innovation will set standards for the use and ethics of AI and data. This will allow the UK to lead the world in developing practical uses for the technology.

17. More investment in maths and science in schools
Schools will get £600 for every extra pupil who takes A level or Core maths.

£27 million will help improve how maths is taught in 3,000 schools. £49 million will go towards helping students resitting GCSE maths.

£350,000 of extra funding a year will be given to every specialist maths school that is set up across the country. The number of fully-qualified computer science teachers will also rise from 4,000 to 12,000.

18. £64 million for construction and digital training courses
£34 million will go towards teaching construction skills like bricklaying and plastering. £30 million will go towards digital courses using AI.

This funding is provided in advance of launching a National Retraining Scheme that will help people get new skills. It will be overseen by the government, the Trades Union Congress (TUC) and the Confederation of British Industry (CBI). They will decide on other areas of the economy where new skills and training courses are needed.

19. A £220 million Clean Air Fund for local areas with the highest air pollution
Local authorities will be able to use this money to help people adapt as steps are taken to reduce air pollution. Possible ways the money could be spent include reducing the cost of public transport for those on low incomes or modernising buses with more energy efficient technology.

The money will come from a temporary rise in Company Car Tax and Vehicle Excise Duty on new diesel cars.

20. Reducing single-use plastics waste
The government will seek views on reducing single-use plastics waste through the tax system and charges. Disposable plastics like coffee cups, toothpaste tubes and polystyrene takeaway boxes damage our environment.

This follows the success of the 5p carrier bag charge, which has reduced the use of plastic bags by 80% in the last two years.

21. Business rates will switch to being increased by the Consumer Price Index (CPI) 2 years earlier than planned
Business Rates will rise by CPI from April 2018. Business rates currently rise by the Retail Price Index (RPI), a different way of measuring inflation which tends to be higher than the CPI.

Business rates revaluations will take place every 3 years, rather than every 5 years, starting after the next revaluation, currently due in 2022.

22. Pubs in England will continue to receive a £1,000 business rates discount next year
The discount applies to pubs with a rateable value of up to £100,000.

23. Stopping digital multinationals who hold intellectual property in low-tax countries from avoiding tax
The government will also look to change international corporate tax rules to ensure digital companies pay a fair amount of tax.

24. More money for Scotland, Wales and Northern Ireland
The devolved administrations will all get increased spending power in devolved areas, including education, health and transport. Each devolved administration can decide where this will be spent:

· There will be an increase of £2 billion for the Scottish Government
· There will be an increase of £1.2 billion for the Welsh Government
· There will be an increase of £660 million for a Northern Ireland Executive

Police Scotland and the Scottish Fire and Rescue Service will be able to claim VAT refunds which will save them around £40 million per year.

25. Funding for transport across England
£1.7 billion will go towards improving transport in English cities. Half will be given to Combined Authorities with Mayors, and the rest allocated by a competition.

An extra £337 million will go towards a fleet of new trains on the Tyne & Wear Metro.

An extra £6 million will go towards the Midlands Connect motorway and rail projects.

Transport links along the Cambridge-Milton Keynes-Oxford corridor will be improved by:

  • completing the rail link between Oxford and Bedford, and Aylesbury and Milton Keynes
  • setting up a new East West Rail Company to speed up work on the rail link between Bedford and Cambridge
  • £5 million to help develop plans for Cambridge South Station
  • building the Expressway road between Oxford and Cambridge
Residence Status and Tests for Taxpayer in the UK

Residence Status and Tests for Taxpayer in the UK

In this article, we will cover the rules for determining an individual’s residence status and why it is important for tax payers point of view.

As a general rule;

  • Taxpayers who are resident in UK in a tax year are taxable on their worldwide income and capital gains arising in that year; while
  • Taxpayers who are Not resident in the UK in a tax year are only taxable on their UK income arising in that year (their foreign income is not taxed). Subject to limited expectations, non residents do not pay capital gains tax.

It is therefore important that a taxpayer’s residence status for tax purposes is correctly determined.

The Statutory Residence Test (STR)
The test determines whether or not an individual is resident in the UK for a tax year. This test takes into account both the amount of time the individual spends in the UK and the other “connections” they have with the UK.

The STR has three parts:

  1. The “automatic overseas tests“- if any of these tests are met, the individual is conclusively non-UK resident for tax year.
    • They were resident in the UK in one or more of the previous three tax years and they are present in the UK for fewer than 16 days in the current year;They were not resident in the UK in all of previous three tax years and they are present in the UK for fewer than 46 days in the current tax year;
    • They meet the “work abroad” condition.
  2. The “automatic residence tests“- if any of these tests are met, the individual is conclusively UK resident for the tax year.
    • They are present in the UK for 183 days or more in a tax year; or
    • They have a “home” in the UK; or
    • They carry out “full time work” in the UK for a period of at least 365 days
  3. The “sufficient ties test“- this contains other connection factors and day counting rules which will only need to considered by those whose residence status is not determined by “automatic overseas tests” and “automatic residence tests”. This test considers whether an individual has sufficient UK ties such that they are UK resident when taking into account the number of days they are present in the UK. There are five “ties” or “connection factors” laid out in legislation;
    • Family
    • Accommodation
    • Work
    • UK presence
    • Country

Determining the residence status even after above guidance is some time very difficult. We have a professional team of chartered certified accountants in Ealing and Hounslow who can guide you in establishing your residence status.

Self Assessment Tax Returns in West London

Self Assessment Tax Returns in West London

Being self employed has many benefits, but with the joys of working for yourself come some burdens. One of the most troublesome for many people is the self assessment process: self employed people are expected to complete their own tax returns, and it can be a stressful experience! If you are looking for advice or help with self assessment tax returns in West London then you may want to talk to Majestic Accountants, a friendly and experienced outfit based in Ealing that can help with all your accounting needs.

With a qualified and professional team of accountants on hand, Majestic Accountants can provide you with help preparing your self assessment tax returns, and with any other accounting enquiries that you may have. With excellent rates and many years of experience in helping both individuals and businesses keep their houses in order, Majestic Accountants provide a quality service that is backed up by testimonials from a variety of satisfied clients. Why not give them a call on 020 8577 0204 now and see if they can help you with your tax issues?

Tax Consulting

Tax Consulting

Individuals working in the construction industry you may have to submit ‘CIS’ Returns. We assist all contractors and subcontractor to calculate their right amount of taxes and returns…

Construction Industry Scheme

Construction Industry Scheme

CIS ACCOUNTANTS

Construction Industry Scheme

We offer one of the best CIS accounting services in West London. Whether you are operating the CIS business as sole trader or CIS limited company, Our team of Certified Chartered Accountants can help you and your business to save maximum amount of tax through tax planning and tax advisory upfront. Please contact us on 020 8577 0204 or contact us using the “Contact Us Form”. Please note we offer fixed reasonable competitive accounting fee in this area.

Does CIS apply to you?

You should register for the Construction Industry Scheme (CIS) if you work for a contractor and you’re one of the following:
• self-employed
• the owner of a limited company
• a partner in a partnership or trust
Under CIS, a contractor must deduct 20% from your payments and pass it to HM Revenue and Customs (HMRC).
These deductions count as advance payments towards your tax and National Insurance bill.
If you don’t register for the scheme, contractors will deduct 30% from your payments instead.

Why do you need us?

While government aims at minimizing the tax evasion in construction industry, the aim of the tax payer is always to reduce the tax amounts as much as permissible legally.

Accounting and tax issues related to CIS is complex process and requires handling by experts. We have qualified chartered certified accountants in our team who ensure that you don’t pay extra amount of tax.

We help our clients by providing customised services according to their business needs. Our clients choose us because we;

1. Provide high quality of customer services
2. work proactively with our clients keep up with meeting the deadlines etc.
3. offer unlimited free meetings to assist our customers to reduce their taxes and guide them in their tax planning.
4. have friendly and approachable staff
5. have fixed prices when sign up with us rather than activity based approach where other accountants can charge you higher in line with your activity or turn over.

Self Assessment Tax Returns

Self Assessment Tax Returns

With the tax regime becoming more complex and more emphasis being put on taxpayers’ individual responsibilities, everyone who is subject to taxation needs professional advice and support if they are to optimise their tax position.

It is important that you submit your Self Assessment Tax Return correctly on time. Through our personal tax services, we aim to assist individuals and families to protect and enhance their privately held wealth with effective Tax advice.

Our personal tax services include;

  • Income tax planning
  • Tax returns preparation and submission
  • Tax returns for properties income
  • Tax returns for capital gains income

Please contact us to arrange a free consultation by calling us on 020 8577 0204 or filling the contact us form below.

Accounts

Accounts

We offer a range of comprehensive accounting services to help our client in operating their businesses in accordance with relevant reporting regulations. We provide services in preparation of full statutory year-end financial statements, as well as monthly or quarterly management accounts. We also assist in preparation of budgets and projections for the businesses.

We examine the key ratios and comparatives which are relevant to our client’s business needs. Our aim is to present the information in a clear and concise manner, producing a snapshot of business performance, and discuss the all relevant issues to help our clients achieve continuing success. Our specialist accounting services include:

  • Financial Accounts/Statutory Annual Accounts for Limited companies
  • Management Accounts for Limited Companies
  • Projected Accounts or Forecasted Accounts
  • Sole Trader Accounts
  • Partnership Accounts

Please contact us to arrange an initial consultation either by calling on 020 8577 0204 or filling the contact form below.

Corporation Tax

Corporation Tax

Professional strategic planning can make a real different to tax liability. Our team of corporation tax specialists provide planning and advisory services on how to pay right amount of tax to HMRC.

Our corporation tax services include;

  • Computerised tax returns and computations
  • Tax-efficient remuneration schemes
  • Structuring or restructuring your company’s activities
  • Capital allowance reviews

Please contact us on by calling us on 020 8577 0204 or filling the contact us form below to arrange an initial consultation.

PAYE

PAYE

We have professional team who provides and deals with all payroll services including liaising with the HMRC. Whether you are a micro business or small limited company, we provide a dedicated member of the team to deal with your payroll and reporting requirements and ensure that all of your company’s payroll compliances are met in a cost-effective and efficient manner.

Our payroll services offer the following:
PAYE registration
Employee payroll
Dealings with maternity pay related issues
Dealings with student loan payment issues
Pension related issue in PAYE
Full payment Submission (FPS) to HMRC
Employer Payment Summary (EPS) to HMRC

Please contact us to arrange an initial free consultation by calling us on 020 8577 0204 or filling the contact us form below.

VAT

VAT

VAT is one of the most technical areas of accounting, where client may needs to register voluntarily or compulsory.

VAT requires thorough knowledge, as rules are complex and the consequences are high if not dealt accurately. We have professional technical advisors who provide right advice to comply with HMRC regulations. We offer following VAT services;

  • Assistance with VAT inspections
  • VAT registration and de-registration
  • Advice on choosing the right VAT scheme (e.g. whether Standard VAT scheme vs Flat Rate VAT Scheme).
  • VAT returns preparation.
  • VAT planning/consultancy throughout the business lifecycle.

Please contact us to arrange a free consultation by calling us on 020 8577 0204 or by filling the contact us form below.