Announcements by the Chancellor in his Spring Budget regarding an increase in Class 4 National Insurance Contributions (NICs) for the self-employed and a delay for certain unincorporated businesses in the mandatory implementation of online tax records will have greatest impact on BALI’s smaller member businesses. Many BALI members will be affected by the revaluation of business rates and they are being advised to acquaint themselves with any appeal mechanisms open to them.
Business rates – A cap announced by the Chancellor means that small businesses coming out of Small Business Rate relief as a result of the revaluation will pay no more than an additional £600 this year than they did in 2016-17. The Government is also providing an additional £300m to Local Authorities to enable them to provide discretionary relief to help businesses most affected by the revaluation.
Class 4 NICs – From 2018 the self-employed will no longer have to pay Class 2 NICs, which are being abolished. Class 4 NICs for the self-employed will, however, increase by 1% in 2018 to 10% on profits of over £16,250, and to 11% in 2019.
Implementation of MTD (Making Tax Digital) – Unincorporated businesses (small businesses owned by one or more people) with an annual turnover below the VAT
taxable threshold of £83,000, have been given an extra year – until April 2019 – before MTD (online tax records and HMRC updating) becomes mandatory.
Tax free dividend allowance – Reduced from £5,000 to £2,000 from 2018.
Skills and training – The announcement that new T-Levels for 16-19 year olds will be introduced from autumn 2019 is excellent news. BALI is meeting with the Minister of State for Education, Robert Halfon MP, this month to discuss our industry’s skills requirements and ensure they are covered within the 15 different T-Level routes. A 50% increase in the hours of training afforded to this age group, including industry work placements, has also been announced. This comes at a time when BALI’s GoLandscape initiative is gaining momentum and every opportunity will be taken to promote the relevant T-Level route pertaining to our industry.BALI hopes that the Autumn Budget this year, which will be the main budget announcement each year going forward, will see announcements on investment in housing and green infrastructure.
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