How will the Spring Budget 2017 Affect Liverpool Businesses?
Spring Budget 2017: Key Points at a glance
- UK growth is up this year; borrowing coming down
- Increase in National Insurance tax contributions for the self-employed
- Tax-free dividend allowance will fall from £5,000 to £2,000 in April 2018
- Measures for business rates are effectively a £435m cut, including a £1,000 cut for 90% of pubs
- £2bn for social care
- £100m for new triage programmes in English hospitals
Spring Budget 2017 Overview
Self-employed Liverpudlians are facing an increase in National Insurance contributions as the Chancellor tackles what he described as an unfair burden on people in employment in the budget this week. The increase comes despite a Conservative manifesto pledge that they would not raise national Insurance.
The 9% rate of NI on profits by the self-employed will rise first to 10% and eventually to 11% in 2019 in a bid to raise an extra £2bn of extra tax revenue in the current term of Parliament. Philip Hammond said this is in response to more Liverpudlians choosing to work for themselves. He cited a preliminary review that found lower rates of tax compared to employment were driving this trend.
Mr Hammond also targeted self-employed people who work through a personal service company and pay themselves in dividends. The tax-free allowance on such payments will be cut from £5,000 to £2,000 from next year – raising over £2.5bn by the next election. The move will hit ordinary Liverpool investors as well as self-employed people but only those with more than £50,000 in stocks and shares that are outside ISAs will feel the pinch.
The changes come despite stronger than anticipated growth this year. The Government’s fiscal watchdog, The Office of Budget Responsibility (OBR), revised its borrowing forecasts down for the next five years and said Britain’s debt would also fall faster than predicted just four months ago.
The Chancellor also announced plans to cut Liverpool business rates for nine out of ten pubs as the regime is amended and used the funds raised by the changes announced in the budget to pay for improvements to social care and triage programmes for Liverpool hospitals.
Spring Budget 2017 – Assured Wealth & Estate Planning Liverpool
Talk to our Liverpool Financial Adviser, Wilmslow Financial Advisor, Warrington Financial Advisor, West Kirby Financial Advisor, Altrincham Financial Advisor or Manchester Financial Adviser team today about how the Spring 2017 budget will affect Liverpool businesses and self-employment.