2016 Autumn Statement
Thursday, November 24, 2016
Belsize Accountancy in AAutumn statement, Flat rate VAT, UK Contractors, UK Limited Company Contractors, limited cost traders

Chancellor Phillip Hammond announced his first Autumn statement in November 2016 with a clear message that the UK is still open for business. This is likely to be the last Autumn Statement as he plans to move the Budget to the Autumn and replace it with an annual Spring statement.

Growth forecasts have been revised downwards due to uncertainty over the impact of Brexit. The Budget Deficit, previously forecast to move to a Surplus position by 2020 will no longer be achieved and will be pushed back a few years.

The Government focus will be on increased investment in infrastructure and innovation with a Budget of £23 billion to spend on relevant projects. £2 billion has been put aside to enable easier financing and aid research and development at disruptive technology companies in the UK to not only help them grow, but also remain in Britain. This is good news for Aim listed companies and also UK contractors, particularly in the IT or engineering sectors.

 

Significant tax announcements:

 

Other announcements:

 

In general, the announcements are in line with proposals from the previous Budget announcement and so there are no major surprises. The new Flat rate of VAT will impact UK Limited Company Contractors who will be worse off and will need to consider whether it is worthwhile being Flat rate registered post March 2017.

 

Article originally appeared on Belsize Accountancy (http://belsizeaccountancy.co.uk/).
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