The Chancellor’s Spring Statement and Budget are always exciting times in the office. We gather together with a decent lunch to watch the speeches with bated breath.
In past years both have had a significant impact on the tax and business world.
The Chancellor committed to leaving these tax style changes to just the budget and he has kept his promise. This month when he gave his speech, he announced no tax changes that we need to share!
- Inflation is on target
- The country’s borrowing is set to fall
- There will be a spending review later in 2019 (expect an interesting budget…)
- National Living Wage is set to increase to £8.21 in April
- Unemployed is at its lowest rate since 1975
- If we can agree on a Brexit deal ‘A brighter future is within our grasp’
What’s happening with Making Tax Digital?
One interesting point was confirmation of the deferral of the ‘Making Tax Digital For Business’ plans. The Making Tax Digital for VAT goes live next month, but the wider, more impactful issue of every business potentially having to report quarterly has again been confirmed as deferred until at least 2020.
The wording was:
‘The focus will be on supporting businesses to transition [to MTD for VAT] and the government will therefore not be mandating MTD for any new taxes or businesses in 2020”
The only another thing announced of interest to us tax geeks were the launch of further ‘consultations’. These are where HMRC look at an issue and ask for feedback. They are normally a good indicator for changes in a given area. We will keep you posted on anything that could impact you.
Tax Year End
As the tax year end is approaching, make sure you read our tips to make the most of your allowances for the year.