2017 Budget Snippets

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2.5 million to lose on average £240 pa in increased Class 4 NIC’s bit for those earning only a reasonable  family wage  it will be higher  with many facing £1000 additional bills from HMRC. It may seem fair to many but the lack of paid sick, maternity or paternity leave and no holiday pay is being  held up as a good reason to pay less than those in employment.

Over 1 million people to lose around £320 a year due to reduction in tax free allowance on dividends

A shocking fact and large tax bill looms on 31st Jan 2018 for freelance workers taking income as dividends rather than purely a salary . And now their annual allowance falls from £5000 to £2000 a year meaning disaster for many small companies.
The first increased Tax bill in January  is times 1.5 as you have to  pay half of the following  year’s tax up front!! Are you prepared?
Following the budget you can expect a tax hike of around £1200 a year and many will not be able to meet this. This cost can only be passed on to the customer as corner shops, newsagents, tradesmen as well as consultants are kicked while they are already down. Liquidations may well result fur those unable to cope or want out of the company system.

New T Levels to help those turning to a technical education rather than a purely academic one ! Great news

Cheapest cigarettes will now rise to £8.82 a pack says the chancellor but effectively a packet of 20 is likely to run at around £10.26 but will smokers  still complain about  a tax rise! They are facing one with every puff! Stop smoking and become a tax evader!

Motor insurance premiums to rise by 10% hitting everyone hard following controversial changes to compensation payouts!

The new NS & I Investment bond launched paying 2.2% on a maximum Deposit of only £3000 over three years,  may not be as great a deal as you think. Inflation is officially forecast to run at  2.4% so it may not inflation proof those savings typically pensioners hope to expect.

Tax free ISA’s going up from just over £15,000 to £20,000 an increase of £4760

Home owners renting out a room in their own home to lodgers have for years benefitted from the tax free Rent A Room scheme
on income of up to £7500 a year. But where there’s a rule there’s a loophole! And many of those renting out short term under Airbnb or web trading have been using this scheme against the spirit of the concession.  So the scheme is under review by the government with a view to making it fit for the original
purpose intended ! Hopefully those towing the line won’t lose out following  the ones who have abused the scheme!


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