It is important for businesses to understand the changes that will be taking place over the coming years as a result of the Autumn Budget 2017. This will help with planning your finances and will allow you to be prepared when these come into force. We have summarised five key changes that you need to be prepared for going forward.
Corporation Tax Rates
The main rate of corporation tax is currently 19%. The rate for future years is:
- 19% for the Financial Years beginning on 1 April 2018 and 1 April 2019
- 17% for the Financial Year beginning on 1 April 2020.
Class 2 National Insurance Contributions (NICs)
There has been a delay in the changes. Class 2 NICs will be abolished from April 2019.
Partnership Taxation
There will be some changes coming in regarding the taxation of partnerships. This is mainly to ensure that all parties have greater clarity about the different partnership arrangements that exist and how much tax is to be payable. There will also be a new structured mechanism for the resolution of disputes between partners over the allocation of taxable partnership profits and losses shown on a partnership return.
Mileage Rates
From 6 April 2017, unincorporated businesses will have the option to use a fixed rate deduction for every mile travelled by car, motorcycle or goods vehicle for business journeys.
Improving Research and Development (R&D)
There will be an increase in the rate of the R&D expenditure credit which applies to the large company scheme from 11% to 12% where expenditure is incurred on or after 1 January 2018. There will be a proactive process to ensure all companies are aware of the R&D tax credits scheme and the process of applying for these will be made simpler.
To find out more about business tax changes have a read of our Summary of the Autumn Budget 2017. If you would like support with any changes that will impact your business taxes then contact us by calling 01623 490 120 or email