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Panthera Budget 2017

Panthera Budget 2017
Wednesday, November 29, 2017

Last week the Chancellor of the Exchequer, Phillip Hammond, delivered his Autumn Budget to the House of Commons. 

For clients starved of time, Panthera have compiled the ultimate summary of the most important points in the Chancellor’s speech.

 

Funding and growth

 

Hammond announced that an extra £6.3 billion will go to the NHS to help fund improvements to NHS buildings, A&E performance, overall care, and to help reduce waiting times. There was also a pledge of extra cash to support new pay settlements for nurses in the UK.

 

An additional £3 billion has been allocated to Brexit preparations over the next two years.

 

£500 million will be used to fund a variety of technological projects across the UK, ranging from 5G technology and broadband to research into artificial intelligence.

 

Devolved administrations will benefit from increased spending power in the Autumn Budget, with an extra £2 billion going to the Scottish Government, £1.2 going to the Welsh Assembly, and £650 million going to the Northern Ireland Executive. They can spend this money as they see fit in devolved areas like health, schools and transport.

 

Government borrowing has fallen by three quarters since 2010 however Hammond said that the UK’s debt is still high at over £1.7 trillion.

 

Inflation is set to peak at 3% in the end of 2017 but is predicted to drop to 2% over the next 12 months. The Office for Budget Responsibility have revised down their estimates for economic growth in 2017 by 0.5% and have also lowered their expectations for future growth in 2018 by 0.2%.

 

Wages and personal taxation

 

Workers in the UK will soon benefit from changes to National Minimum Wage and National Living Wage.

 

As of April 2018, over 25s will see living wage increase by 4.4% from £7.50 to £7.83 an hour. Minimum wage will rise to £7.38 per hour for 21 to 24-year olds, £5.90 for 18 to 20-year olds, £4.20 for under 18s, and £3.70 for apprentices.

 

The personal tax-free allowance will rise to £11,850, meaning the typical tax payer could save an average of £1,075 in 2018-19 as compared with 2010-11. The higher-rate tax band for England and Wales will also increase by £1,350 with Scotland yet to set their own rate.

 

Hammond’s Budget also stated that Air Passenger Duty will be frozen for all short-haul and economy flights, but premiums on tickets for long-haul and private jet flights will increase.

 

Taxation on tobacco has been increased to 2% over the rate of inflation, whilst alcohol duty has been frozen on all but white ciders.

 

Business taxation

A report from the Office of Tax Simplification earlier this year warned that the VAT threshold could drop from £85,000 to £26,000, meaning that most of the 55% of UK businesses currently not liable for VAT would have to register.

 

However, Hammond’s speech did not address these concerns and he told the House that the £85,000 threshold would be maintained for at least another two years before reconsideration.

 

Early 2017 also saw widespread changes to business rates with the revaluation of all business premises. Where some no longer had to pay non-domestic rates under the new rules, others saw their bills increase threefold.

 

The Autumn Budget declared a switch from using the Retail Price Index to the Consumer Price Index, meaning business rate increases will be lower than originally anticipated. Non-domestic rates will also be revalued every three years instead of every five under the new rules, starting in 2022.

 

“Knowledge intensive companies” will see the relief on their EIS investment tax double to as much as £2 million. Larger businesses that invest in Research and Development will also see a 12% relief under the Enhanced R&D scheme.

 

The housing market

 

Those taking their first step on the housing ladder will now no longer have to pay Stamp Duty Land Tax for their purchases of up to £300,000. For homes costing between £300,000 and £500,000, the first £300,000 will be discounted when working out how much SDLT they need to pay.

 

Whilst purchases of over £500,000 will not receive this relief, 80% of first time buyers will still benefit from the change.

 

The Budget also accounted for £44 billion in capital funding, loans and guarantees being used to build 300,000 new homes each year over the next five years – an amount not achieved since 1970.

 

Hammond also promised to build a million new homes in the “Cambridge-Milton Keynes-Oxford” corridor by 2050.

 

Transportation

 

As part of their current efforts to discourage diesel vehicles, the government have announced that there will be a rise in both vehicle excise duty and company car tax for new diesel cars from April 2018. The additional revenue brought in from these charges will go towards reducing air pollution in the UK.

 

The Budget declared that £1.7 billion would be used in improving transport systems in English cities with a further £337 million going towards a new fleet of trains for the Tyne and Wear Metro.

 

£400 million will be used to build new charging infrastructure for electric cars across the nation. £40 million will go towards developing the technology for these charging stations and new rules will be set into place to protect people charging their cars at work from benefit-in-kind taxation.

 

The Autumn Budget and you

For more information on the changes and how they may affect you, call us on 01235 768 561 or email the team at

enquiries@pantheraaccounting.co.uk.

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
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The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

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Ash & Tim Lane

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We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

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John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

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