The Autumn Budget 2017: What Does It Mean For Me?
Philip Hammond officially announced the Autumn Budget 2017 on November 22nd, adding a final shake to what has been another eventful year for the United Kingdom.
True to form, the most recent Budget contained information pertinent to the entire population. However, the areas that stood out most for us were announcements around the National Living Wage and VAT threshold affecting SME owners.
Here, we take a closer look at the influence and consequences these developments could have on your company and the country itself.
National Living Wage
Many in the hospitality sector had been bracing themselves for announcements about wage increases in the Autumn Budget. Sure enough, Hammond declared that the National Living Wage will increase from £7.50 to £7.83 in April 2018, meaning independent hospitality businesses will have to dig deeper into their pockets to pay employees.
The National Living Wage is tricky territory. Whilst it is undeniably a good thing that hospitality staff have the opportunity to earn more money, these wage increases do put added pressure on businesses operating on a limited budget.
These companies now need to plan for the wage hike with various Budget amendments – an area where Nabarro Poole can supply the best possible support.
Many of our clients teeter on the VAT threshold, and tipping over from one bracket to the next can have huge ramifications for your company. Whilst it can feel precarious sitting in such a position, the Autumn Budget offered some good (albeit temporary) news for small business owners: the VAT threshold will be frozen at £85,000 for the next two years.
The government will have future discussions on whether to change this figure as they look to encourage companies to grow, but in the meantime small business owners can relax in the knowledge that generating less than £85,000 worth of turnover will continue to keep their tax payments lower.
We’ll discuss VAT threshold in greater detail in another blog later down the line, but for now, we consider the freeze – which is cheerily accompanied by a suspension on alcohol duty rises – to be positive.
Want to know more about the budget? Give Nabarro Poole a call…
The November address was packed with all kinds of information that is sure to affect different people in different ways. Along with the changes to the National Living Wage and VAT threshold, there were also noteworthy announcements regarding property (abolishing stamp duty for first-time-buyers), vehicles (fuel duty freeze) and travel (a new card offering rail discounts for people up to the age of 30).
Whilst these issues may be on your periphery right now, they could potentially impact the way you conduct business moving forwards. If you’re looking for clarification on what some of these decisions might mean for your company, all you need to do is pick up the phone and call us on 0161 998 4276 to arrange a free consultation.
23rs November 2017
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