Sunday, June 7, 2020

The Spring Budget – the Budget before the trigger is pulled

By James Pinchbeck, marketing partner at Streets Chartered Accountants.

Philip Hammond’s first and last Spring Budget is unlikely to have left many lasting memories, even for the most avid followers of politics or taxation. Overall it was a Budget Statement that left most, if not all, with a sense that our lives remain very much the same as they did before the Chancellor delivered his statement, both from a business and a personal perspective. Should we have expected more? Perhaps not. With an economy deemed to be more resilient than expected post Brexit, tax revenues up and growth better than forecast, what else needs to be done?

With Article 50 to be triggered before the end of the month, perhaps the Budget was as much maintaining the status quo and making a statement that the UK is open for business and ready to face the challenges as we decouple ourselves from the EU. Much of this is about ensuring the UK is competitive and productive, which relies on investment in technologies, infrastructure and skills. At the same time we need to remain attractive for businesses in terms of tax take as well as for individuals in terms of the standard of living they enjoy.

Businesses no doubt welcomed the proposed simplification in the admin for tax relief for Research and Development and the introduction of Technical training for 16 -19 year olds with T levels. In addition, those concerned about the impact of the new Business Rates will have welcomed the support and relief they can receive. Equally those businesses and self-employed that trade below the VAT threshold will welcome the decision to defer the requirement for them to do complete quarterly digital tax returns and their take up of “Making Tax Digital” by a further year.

Perhaps greater concern should be around the Chancellor’s intention to look into the differing tax regimes and the implications enjoyed by the self-employed. Seemingly he will be looking into the use of differing trading entities giving rise to inequalities or inconsistencies in the tax – this is likely to be a target for his Autumn Budget. His attack on the use of dividends through incorporation by business owners, with a reduction in the tax free amount which can be paid from £5,000 to £2,000, is a warning of things to come. This, along with the 1% increase announced for Class 4 Nic which is payable by the self employed.

Whether the Chancellor has done enough in terms of addressing the often complex and growing demands on the NHS and social care it is hard to say. Whilst additional funding of £2 billion for care no doubt is good news, perhaps it might only be a drop in the ocean. Again we will have to wait and see what incentives or tax treatments might be put in place in the Autumn Budget to meet the cost of looking after an ageing population.

Whilst Spring is a time for green shoots and optimism, the 2017 Spring Budget probably left most of us with more of a feeling of a dull grey day. Let’s hope the second Budget of 2017 is more Autumn Gold.

For further commentary, details on the announcements and the new tax rates please visit www.streetsweb.co.uk, download our free app Streets iAccountant or watch our Spring Budget 2017 video on YouTube. 

James Pinchbeck is marketing partner with Streets Chartered Accountants, a top 40 UK accountancy firm. Email info@streetsweb.co.uk or visit www.streetsweb.co.uk

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

Union hits out at East Midlands aerospace parts firm as 420 redundancies planned

Aerospace parts firm SPS Technologies "must not exploit the lockdown" to slash jobs and terms and conditions at its sites in Nottingham, Leicester and...

Streets focus on job and employment schemes in latest business update

Streets Chartered Accountants provide details of changes to Coronavirus Job Retention Scheme including the introduction of flexible furlough in its latest business support update. As...

3 business tips for saving money during Coronavirus

Coronavirus has changed every business in the world. Whether you’ve been made to work remotely, put your staff on furlough, or redirected your resources into...

New ownership for Market Harborough ventilation, maintenance & hygiene company

System Hygienics, formerly the service arm of the Hotchkiss group - the largest duct manufacturer and installer in the UK – have new ownership,...

Construction of Kirkby’s new Leisure Destination takes a step closer

Plans to bring a new state-of-the-art leisure centre to Kirkby in Ashfield have taken another step forward. Ashfield District Council is seeking tenders from contractors...

Related news

Shared office spaces cautiously reopen

Many of the UK’s network of 5,000 shared office spaces are tentatively re-opening this month as more businesses return to the workplace as the...

Union hits out at East Midlands aerospace parts firm as 420 redundancies planned

Aerospace parts firm SPS Technologies "must not exploit the lockdown" to slash jobs and terms and conditions at its sites in Nottingham, Leicester and...

Streets focus on job and employment schemes in latest business update

Streets Chartered Accountants provide details of changes to Coronavirus Job Retention Scheme including the introduction of flexible furlough in its latest business support update. As...

3 business tips for saving money during Coronavirus

Coronavirus has changed every business in the world. Whether you’ve been made to work remotely, put your staff on furlough, or redirected your resources into...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close