Budget 2018

5th November 2018
budget briefcase

Whilst the welcome news in the recent budget left Insurance Premium Tax (IPT) at 12%, it will have a bigger impact on many commercial markets.

In his Budget 2018 opening comments, Philip Hammond stated: ‘I can report to the British people, that their hard work is paying off, and the era of austerity finally coming to an end.’

Small businesses have been earmarked for a cut to their rates bill in a bid to get the high streets moving and to this end £675 million will be invested in redevelopment.

Key was his announcement on IR35, a part of National Insurance is being rolled out include the private sector having previously only affected Public Sector contractors. IR35 is aimed at those who are not classed as employees, so contractors or those working off pay-roll. However, this change will be delayed until April 2020 and at this point it will only apply to large and medium-sized businesses.

Incidentally, the National Insurance (NI) rate for 2019-2020 will remain the same. However, the thresholds have increased. In addition, the personal income tax allowance has increased, meaning that you can earn more before contributing to NI or paying tax.

Other announcements included a raft of changes to the Business and Digital tech industries. One Guarantee has dived into how the budget affects housebuilding and construction. Always under the microscope was healthcare, which we will be looking at later in the month. Of course, this year’s announcement would not have been complete without referencing Brexit. It’s also interesting to note that, topically, a new plastic tax has been introduced as part of the announcements on the environment.

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