Going into Budget 2018, between leaks and political instability, few expected Chancellor Philip Hammond would have surprises left to spring.
However, under pressure to support No 10’s ‘end of austerity’ message, bolstered by revised growth forecasts from the Office of Budget Responsibility, and safe in the knowledge that it could all go out of the window in the event of a no-deal Brexit, the Chancellor managed to secure a raft of noteworthy announcements.
- Commitments to increased public spending on emotive issues such as schools, high streets, hospitals, village halls, potholes and public toilets.
- A new UK digital services tax, coupled with a two-year cut in business rates for some independent shops, cafes and pubs.
- Minimum wages increase
There were also many specific technical changes in both business and personal tax, including the headline measure of an increase to the personal allowance and the higher-rate threshold from April 2019.
But there are hidden thorns, too. For example, as long expected, IR35 will be extended into the private sector, while entrepreneurs and lettings reliefs are also tightened up.
To understand how the announcements will affect you and your business download our comprehensive 2018 Budget Report.
This report does not constitute advice from taylorcocks, so please contact us if you wish to discuss any aspect of this year’s budget and how it may impact you and your business.