FREE Budget reports and Tax Rate Cards

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Most people, at one time or another, have sat in front of the TV listening to the chancellor’s budget speech and thought ‘What’s that all about?’ and ‘How does it affect me?’. So we decided that it might help if we took the information provided in the budget and created an easy-to-understand Plain English Budget Report each year.

The below guides give you a simple breakdown of exactly what was said and what it means for freelancer's and contractors who operate through their own limited companies, covering areas such as Business and Investment incentives, Personal Taxation and Savings, Capital Taxes and Duties, VAT, Tax Rates and Allowances, Car Taxation and so on. And of course, if you’re still unclear about any accountancy-related issues, feel free to get in touch and we’ll try to help.

Click the below links to download your free reports:

Autumn Statement 2016

 SJD Accountancy Autumn Statement 2016/2017

Budget Reports

 SJD Accountancy Budget Report 2017/2018

 SJD Accountancy Budget Report 2016/2017

Tax Rate Cards

 SJD Accountancy Tax Rates Summer Budget 2015/2016
 SJD Accountancy Tax Rates 2015/2016

2016 Autumn Statement

Key points from the Autumn Statement 2016

In the lead up to today’s Autumn Statement there has been continued speculation in the media regarding the changes that could affect contractors. We have reviewed what the Chancellor, Philip Hammond, presented in Parliament today and have summarised the key points below.
 
There are 3 key announcements pertinent to all contractors and freelancers which relate to people working in the Public Sector and the VAT Flat Rate Scheme.
 
Key announcements:

  1. Following consultation, the government will reform the off-payroll working rules in the public sector from April 2017 by moving responsibility for operating them, and paying the correct tax, from the contractor themselves to the body paying the worker’s company. The public sector bodies will be responsible for the correct payment of tax. No definitive guidelines have as yet been published and we will keep you updated on any future announcements in relation to this.
  2. 5% tax free allowance will be removed for those working in the public sector reflecting the fact that workers no longer bear the administrative burden of deciding whether IR35 rules apply. 
  3. Flat Rate Scheme (FRS): A new rate of 16.5% will be applied from 1 April 2017 for businesses with limited costs (for example labour only businesses). Draft legislation will be published on 5 December 2016 including a handy calculation tool to help contractors assess if the 16.5% rate applies.

Additional points to note:

Taxation of benefits in kind 
Tax and employer NI advantage of salary sacrifice schemes will be removed from April 2017 except for arrangements relating to pensions, childcare, Cycle to Work and ultra-low emissions cars. Arrangements in place before April 2017 will remain in place until April 2018. Arrangements for cars, accommodation and school fees will be protected until April 2021.

Non-payrolled benefits
Any cash contribution ‘making good’ payments to reduce the value of a benefit must be made by 6 July following the end of the tax year. Provisions are to be made in Finance Act 2017 to only tax personal use of business assets for the periods that they are made available.

Property and trading income
A new £1,000 tax allowance is available. If your income is below £1,000, the income is not reported or taxable.

Low emission cars
100% First Year Allowance (FYA) is applicable for expenditure on electric charge point equipment. The allowances expire on 31 March 2019 (in relation to Corporation Tax) or 5 April 2019 (in relation to Income Tax).

Company car
New tax bands and rates for Ultra Low Emission Vehicles have been announced. The rate for cars emitting more than 90g CO2/km has been raised by 1%.

Loss relief
Only 50% of profits can now be used to offset brought forward losses.

Personal Allowance
Personal Allowance increases to £11,500 for all contractors from 6 April 2017. The higher rate threshold will increase to £45,000 from the same date. Income tax rates and dividend tax rates are unchanged.

National Insurance
Employers and employees will now both start paying National Insurance Contributions (NIC) when income exceeds £157 per week from April 2017.

Fuel duty
Duty on fuel remains frozen for the seventh consecutive year.

Letting fees
A ban on letting agents charging fees to tenants is to be imposed as soon as possible (the date is yet to be announced). This is already in place in Scotland.

ISA
The total maximum amount of savings that can be paid into an ISA will be increased from £15,240 to £20,000 in April 2017.
 
This was Philip Hammond’s first, and last Autumn Statement. Following the Spring 2017 Budget, the timetable for Budget announcements will change. The Budget will take place in the Autumn of each year. This will be followed by a Spring statement which is not intended to introduce major legislative changes.
 
As ever, the Autumn Statement contains many legislative and regulatory changes which will impact you. We are sure, once you have had time to digest this information you will have some questions. If you would like to discuss anything in more detail, we will be happy to assist and advise you further. Please do not hesitate to contact your accountant.

For further advice please call our New Client Services helpdesk on 0500 152500 / 01442 275789 or email lisa.wood@sjdaccountancy.com

If you do choose to set up a limited company, which is exactly what our other 15,000 contractor and freelancer clients have done, you may like to choose SJD to help form your company. Last year alone, more than 3,000 contractors formed their Limited company on our website.

SJD Accountancy

SJD Accountancy are the UK's largest specialist provider of fixed fee, Limited company accountancy services to contractors; we've been acting for contractors across the UK since 1992 and have more than 15,000 clients.

We are the only national specialist firm of contractor accountants with offices nationwide. SJD Accountancy has more qualified staff than any other firm in our market with qualifications from the following major tax and accountancy bodies - ATT, AAT, CTA, ACCA, CA, ACA and FCCA.

  • Unlimited face to face meetings. This is a unique service only SJD Accountancy offers - unlimited face to face meetings across the UK - tax is complicated and sometimes only a meeting will do.
  • UK's Largest contractor accountants with more qualified staff. No call centres, no outsourcing, no automated call handling. Simply telephone, email or meet your own dedicated accountant* face to face.
  • Money back service guarantee. All your telephone calls and emails will be answered the same day or we will make a full refund of that months fee.
  • Outstanding reputation. We have won more awards for customer service and accountancy excellence than any other firm in our market, including: Best Accountant for Contractors, Accountant of the Year and Best Professional Service Team to name just a few.
  • All inclusive low cost fixed fee accountancy package which includes completion of accounts*, payroll bureau, dividends and corporation tax computations, personal taxation, free bookkeeping software, your own dedicated accountant* and all company returns for a fixed fee of £120 plus VAT per month.

If you have any questions about contracting or would like any further advice please call our new client services helpdesk on 01442 275789 or email: janice@sjdaccountancy.com.

Appoint SJD Accountancy and never worry about your tax or accountancy affairs again.

Form your own Limited company with SJD - our same day online company formation service includes company bank account set up, VAT/PAYE registration and advice on optimum share structure. 

You may also find the following pages, guides and case studies useful:

*If you would like us to complete your company year end accounts we simply ask that you have been a client of SJD for one year or have made 12 monthly payments. All accountants are part or fully qualified.