Rough guide to the Autumn Statement
Last week's Autumn Statement contained plenty of new announcements that will have a direct impact on the UK accountancy sector. Even so, it is easy to miss the important news lost among the bigger headline grabbers.
For the UK economy, any changes to rules and regulations surrounding taxation and business practises are likely to have long-lasting effects, so here are some of the most noteworthy aspects of the Chancellor's Statement.
The apprenticeship levy
In what some are seeing as an effective increase in employers’ NIC, this new levy will be set at 0.5% of the employer's payroll costs and come into play from 6 April 2017. However, as every employer will get a £15,000 levy allowance similar to the current employment allowance, SMEs should be spared the worst, as only employers with wage bills of over £3 million will be affected.
If intangible assets are held through partnerships and LLPs that contain a company as a member, a new change in law will see these taxed under the intangible asset rules that apply for companies, as opposed to individuals.
Excess balancing allowances or charges under the capital allowances rules for the disposal values of plant and machinery are to be adjusted to reflect the payment (in whatever form) actually received for the asset.
Other changes to look out for are the setting of an additional 3% Stamp Duty Land Tax (SDLT) charge for landlords, proposed quarterly reporting for the self-employed and landlords and the acceleration of tax payment dates.