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Autumn 2016 Statement

This is an introduction only and should not be used as a definitive guide, since individual circumstances may vary. For specific advice please contact us.  

Flat Rate VAT scheme changes
From 1st April 2017 a business will be required to use a flat rate percentage of 16.5% if it is a 'low cost trader'. This is equivalent to 19.8% of the net turnover leaving almost no credit at all for the VAT incurred on purchases. A low cost trader is one whose expenditure on goods is less than 2% of its gross turnover. 'Goods' does not include expenditure on services such as rent, IT support, telecoms etc. or expenditure on capital iitems, motor expenses, food or drink. 

If you think this may affect you , you may wish to consider deregistering if your turnover is below the threshold, or coming off the flat rate scheme. Please contact Debbie for individual advice.

Salary Sacrifice
From April 2017 most salary sacrifice scheme will be subject to the same tax as cash income. Schemes where employees exchange some of their salary for a non-cash benefit in kind (such as a mobile phone) to allow both employer and employee to make a tax saving, have been axed.

Certain types of salary sacrifice schemes will be exempt, including pensions, pensions advice, childcare, ultra-low emission cars (emitting less than 5% CO2) and Cycle to Work. 

All arrangements in place before April 2017 will be protected for up to a year, and arrangements in place before April 2017 for cars, accommodation and school fees will be protected for up to four years.

ISA Limits
ISA limit will increase from 15,240 to 20,000 in April 2017

Pensions
The money purchase annual allowance, the amount you can put in a pension without being taxed after you have started taking income from it, will be reduced from 10,000 to 4,000 in April 2017. 

Non-Domiciled Individuals
From April 2017, non-doms will be deemed UK-domiciled for tax purposes if they have been UK resident for 15 of the past 20 years, or if they were born in the UK with a UK domicile of origin

 

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BullockWoodburn Limited  
Registered in England & Wales No: 6479910

Registered Office:  Norfolk House, Hardwick Square North, Buxton, Derbyshire, SK17 6PU

Tel: 01298 22108/9          Fax: 01298 72484          E-Mail: admin@bullockwoodburn.co.uk