In reaction to the Chancellor Philip Hammond’s Budget speech, Chas Roy-Chowdhury, head of taxation at the ACCA (Association of Chartered Certified Accountants) says on:
Personal allowance and 20% tax band
‘The accelerated personal allowance increase to £12,500 as well as the extension of the basic rate band to £50,000 being brought forward earlier to the next tax year is welcome. Many hard pressed individuals, who have had little or no pay rises over the last several years. This is the biggest signal the Chancellor could give that austerity is almost over.’
Tax crackdown on fake self-employment
‘It is right for the Chancellor to target those who take on work through a private company when they should actually be treated as employees and pay the appropriate national insurance contributions, both the employer and employee.
‘However, opinion on whether the public sector IR35 rules are really working is sharply divided, and it is good to see the Chancellor heeding calls for a measured approach to implementation. But these new rules should be accompanied by clear guidance and a pragmatic approach from HMRC so that those who are genuinely self-employed are not penalised and put off setting up in business. The UK urgently needs entrepreneurs and this should not be a road block to start ups and existing businesses.
'The UK urgently needs entrepreneurs and this should not be a road block to start ups and existing businesses.’
‘We fully welcome this significant announcement and consider it to be a good start. Much more needs to be done to reduce the disproportionate tax burden which small businesses suffer around tax compliance and red tape in general.
‘ACCA has been involved in discussions with Government Departments to find ways to relieve the burden of rates on small businesses.’
International tax reform for the digital tax
‘The OECD is already working on the new digital services tax. The UK needs to be very careful about the design of the tax to ensure it specifically taxes the platforms in a targeted manner, should be time limited and details need to be consulted on.'
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