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Budget Report March 2016

Philip Hammond’s first Budget as the Chancellor of the Exchequer was a largely quiet affair but it did contain a few announcements that may directly affect freelance contractors.

Call 0161 703 2549 or email info@championcontractors.co.uk

Here are some key changes that may affect you:

  • From April 2017, the Corporation Tax rate will fall to 19%. In 2020 it will fall again to 17%
  • The tax free dividend allowance will be reduced from £5,000 to £2,000 from April 2018
  • The off payroll rules (IR35 reform) in the public sector will take effect from April 2017 - click here for further information
  • The government will introduce a new 16.5% rate from 1 April 2017 for businesses with limited costs that operate within the VAT Flat Rate Scheme - click here for further information
  • From 1 April 2017, the VAT registration threshold will increase to £85,000 from £83,000
  • The main rate of Class 4 National Insurance Contributions (NICs) paid by Sole Traders (unincorporated businesses) will increase from 9% to 10% in April 2018 and 11% in April 2019
  • The personal allowance will increase to £11,500 in April 2017 - the higher rate tax threshold will increase to £45,000.
You can obtain much more detail about the March 2017 Budget by clicking on our

Budget Report Summary