Following the move from a Spring budget to an Autumn budget, 2017 unusually sees two full-scale budgets. It is likely that there will be some changes from Spring’s budget for 2017/18 that will be adapted further, with two key talking points to look out for being:
1. Self-employed National Insurance Contributions will be simplified by abolishing Class 2 NICs and increasing Class 4 NICs to 10% from 2018/19 and 11% from 2019/20.
2. The tax-free dividend allowance that replaced the 10% dividend tax credit of previous years will be reduced from £5,000 to £2,000 from 2018/19, in a bid to raise more taxes from the self-employed.
At Senstone, we will help you accommodate these changes as best as possible, looking into tax-efficient methods for withdrawing income from self-employment.