Published: 11 April 2017 | Category: News
The Government recently released the Spring Budget for this year, and it contained a few interesting pieces we wanted to bring to the attention of our readers. There’s also been some confusion as the Government has since chosen to repeal some of their stated intentions, so we wanted to make sure everything was as clear as possible.
One of the changes that stands to affect quite a few people is a reduction in in the tax-free allowance for dividend income. The Government has stated that it is making these changes in the interest of creating a more level playing field between the self-employed and those working for a business. From April 2018, the tax-free allowance will be reduced from £5,000 to £2,000. If you currently run your business through a limited company then this change will probably affect you, increasing your income tax bill by £225. Get in touch with us here at Turner & Turner if you’re unsure.
In the original Spring Budget, the Government announced plans to increase certain National Insurance Contributions for the self employed. This caused something of an outcry, as the Government had previously promised that National Insurance Contributions would never be raised whilst they were in power. Since then the Chancellor has officially scrapped those plans, meaning your National Insurance Contributions should not change.
Here at Turner & Turner we provide expert accountancy services to clients in a range of industries. We help our clients ensure that they are always tax compliant so there are never any unfortunate surprises. If you could use our services, why not get in touch today by calling 01772 716 555 or fill in our online contact form.