Minimum Excise Tax - The government will introduce a Minimum Excise Tax for cigarettes. This will target the cheapest tobacco and promote fiscal sustainability. The rate will be set at £268.63 per 1,000 cigarettes. It will take effect from 20 May 2017.
Business rates relief (England only)
Over the past few months there has been an increasing clamour amongst the press and small businesses as to the unfairness of, and steep hikes in, the business tax rate liabilities that some organisations have to pay. The government, whilst not directly acknowledging the concerns, have proposed that the following measures are put in place to support businesses facing increases in rate bills as a consequence of the revaluation process. Permanently double Small Business Rate Relief from 50% to 100% (on property with a rateable value of £12,000 or less) thereby removing a business rate liability from 600,000 businesses. Introduce a cap on business rate increases for small businesses coming out of the Small Business Rate Relief to not more than £50 per month or £600 per annum for this year and the next. Public houses to be given a £1,000 discount for premises with rateable values of less than £100,000. Local authorities will have a £300 million fund for discretionary relief to allocate where needed. Reform of the business rates process with a consultation before next revaluation process due (2022).
As part of the process of increased devolution to London the government has also agreed to explore how the administration of business rates can be included.
Corporation tax
Corporation Tax will reduce to 19% from 2017-18 and 17% by 2020 as planned.
Tax credit debt
As announced by the Secretary of State on 9 February 2017, the DWP will recover a volume of HMRC tax credit debt using its existing powers including the use of Direct Earnings Attachments.
Fuel Duty
Fuel Duty is to be frozen again for the 2017-18 tax year.
Insurance Premium Tax (IPT)
The government will legislate to introduce anti-forestalling provisions and increase the standard rate of IPT to 12% from 1 June 2017, as announced at Autumn Statement 2016.
Value Added Tax (VAT)
From 1 April 2017 the VAT registration threshold will increase from £83,000 to £85,000 and the deregistration threshold from £81,000 to £83,000.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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