As always, there are mixed reviews on the Budget Philip Hammond delivered and our senior tax manager, James Thompson shares his views on some of the key points that arose in yesterday’s budget:
“The Chancellor has given a surprise but significant boost to the ordinary working person by raising the personal allowance and higher rate threshold earlier than planned.
“It means the take-home pay of a large percentage of the population will be increased, which is great news for millions of people.”
“There are also plenty of positive measures for business. The significant increase in annual investment allowance will encourage more companies to invest in plant, machinery, and infrastructure, and a reduction in business rates for high street retailers is also welcome.
“The rumoured withdrawal of Entrepreneurs’ Relief has not happened, although the minimum ownership period to qualify for relief has been increased from 12 months to two years. It will be interesting to see if this is effective immediately or with effect from 6 April 2019.
"Overall it’s a business-friendly budget with a focus on SMEs.
“The clampdown on tax avoidance continues and includes new measures designed to prevent individuals and businesses from ‘not paying their fair share’, such as the introduction of a new digital services tax and action to make HMRC a preferential creditor in insolvency cases.
These too send out positive messages to entrepreneurs and small business owners who are committed to paying their way and form the backbone of our economy."
If you have any queries surround the new Budget, feel free to contact James Thompson by clicking here or by calling 0161 477 2474