In his first statement as Chancellor, Philip Hammond delivered the unexpected news that going forward, the Autumn Statement would be scrapped and become the official Budget and instead, a “Spring Statement” will be delivered in March. @UKplc Company Registrations looks at other measures announced by Hammond, and how these might affect your business.
Bad news for landlords and estate agents?
Letting agents in England will soon be banned from charging administration fees to tenants and instead must shift the cost to landlords. Although the Chancellor says that this will save 4.3 million households hundreds of pounds, it’s likely that if you’re a landlord, these extra fees may cause you problems. Estate agents are also likely to be impacted by this change because landlords are free to shop around for the cheapest agent.
Do you offer perks to your employees?
If you offer employees benefits such as gym membership and mobile phone deals through a work benefit scheme in return for a slightly lower salary, you will no longer be able to get away with paying less tax. Hammond says such schemes are “unfair” and many will be abolished from April 2017 onwards.
However, schemes covering childcare, pensions, ultra-low emission cars and cycling to work will not be affected by this change.
You’ll need to give your employees a pay rise
The National Living Wage, which is applicable to people aged 25 and over, is rising from £7.20 to £7.50 in April. National Minimum Wage, which varies depending on your age, is also set to increase. From April, apprentices will be paid a minimum of £3.50 an hour, whilst 16 to 17 year olds will need to be paid £4.05 an hour. Meanwhile the minimum for 18 to 20 year olds will be £5.60 and for 21 to 24 year olds, it will be £7.05.
Your corporation tax will eventually go down
Chancellor Hammond has committed to reducing corporation tax from its current rate of 20% down to 17% by 2020. The government says this will make it the lowest rate of corporation tax in the G20 and will benefit over one million businesses.
More opportunity for innovative businesses to receive investment
The government has committed £400 million through the British Business Bank to invest in growing innovative firms. The aim is to provide innovative small businesses with the potential for growth with the finance that they need to expand.