On the 22nd of November, the Chancellor of the Exchequer Phillip Hammond announced the Autumn Budget statement for 2017. Are you wondering how this will affect you and your business? Follow the advice of the Glasgow accountant team from The Kelvin Partnership, and find out the key points!
The accountants at The Kelvin Partnership always ensure that our services go above and beyond. It is extremely important to us that every business in each sector we cover is informed of news that will impact them. Our advice has been valued and trusted by personal and professional clients for over 30 years.
How Will the Autumn Budget Statement Affect You?
As a result of economic uncertainty, due to impending Brexit, the Budget details that the UK’s growth forecast has been reduced from 2% to 1.5%. Investments are also more than likely going to reduce as a result of Brexit, which will affect the small and medium sized businesses that make up most of the British economy. However, Phillip Hammond is providing 3 billion pounds to prepare for the UK’s departure of the EU.
A great amount of attention has been brought towards tech development in the Autumn Budget Statement. A positive for those businesses within the industry. The Government is setting out to invest over £500 million towards 5G networks, broadband and artificial intelligence (AI). Also it is detailed that the Government will work on the availability of capital to tech start-ups. When revealing the Budget, Phillip Hammond explained that “the UK is on the brink of a technology revolution,” so is dedicating significant amounts of money towards it.
Business Tax & Investment
The VAT threshold is going to be frozen at £85,000 for 2 years. Which means that some businesses will still be able to remain out of the threshold for VAT registration. Also, as a result to the recent rise in inflation to 2.9%, the Government has committed to provide more than £2.3 billion to support businesses. Which will be a great benefit to small business owners. Along with this support, corporation tax is remaining at 19% which demonstrates again that small businesses are being considered. When it comes to something like business tax and investment, the accountants at The Kelvin Partnership have trusted advice. Interested in hiring an accountant, learn more about the benefits in this blog post.
National Living Wage
Another part of the Budget that will affect businesses is payroll increases. The National Living Wage (for over 25 year olds) is being increased by 4.4% from £7.50 to £7.83. Also the National Minimum Wage is being increased to;
- £7.38 for 21 – 24 year olds
- £5.90 for 18 – 20 year olds
- £4.20 for 16 and 17 year olds
- £3.70 for apprentices
Worried about the affects the Budget is going to have on your business? Our accountants will be happy to provide you with the best advice.