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Budget Backtracking

March 22, 2017

Following the recent budget announcements announcing a hike in Class 4 National Insurance rates for the self employed, the government has announced immediately that this will be scrapped, which is good news for self employed individuals.

 

Making Tax Digital

In other good news from the budget - announcements that the government plans to delay their Making Tax Digital plans will be welcomed by many Sole Traders, who now have until April 2019 to get ready for the changes.

 

Dividend Tax

While this backtracking benefits sole traders and partnerships, it was announced that the harsh new £5,000 per annum dividend allowance for individuals, introduced last April, will be cut to £2,000 from April 2018, which will unfortunately result in a tax rise again for many company directors and shareholders who rely on dividends as a main part of their income.

 

The changes announced mean it is more important than ever to plan ahead and think about a tax efficient remuneration package for company directors. Get in touch to see how we can help.

 

 

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