Spring Budget 2017: Predictions
6th March, 2017
On Wednesday 8 March 2017 Chancellor Hammond will deliver his Spring Budget.
The draft Finance Bill 2017 has provided us with an indication of government proposals to come into force from April of 2017. The key proposals are:
- Alignment of National Insurance Contributions (NIC) for employees and employers;
- Salary sacrifice limitations (the government is fixing a taxable value of those benefit in kinds provided through salary sacrifice at the higher amount of the cash forgone or the amount calculated under existing benefit in kind rules. This means there will no longer be a tax benefit for entering into these agreements);
- Alignment of dates for making good on benefits in kind. This has the effect of reducing the taxable value of the benefit in kind
Additionally, small businesses are set to suffer with Business Rate revaluations coming into place in April, some businesses could be faced with a 400% whilst some larger businesses may actually receive a decrease in their business rates.
More generally, the main focus has been on a predicted drop in government borrowing.
If you have any queries about the proposed changes and how these could impact you and your employees, please contact our Employment Department.