The pressure is on the Chancellor who has promised a “bold” budget to be revealed on Wednesday. Don’t worry if you won’t have time to watch – we’ll be watching for you and our Full Report will be available on Thursday Morning.
Here are the key areas that we are looking for:
In the spring the government proposed an increase in Class 4 National Insurance contributions from 9% to 11%. This was subsequently abandoned but could it be revived in this budget? The atmosphere is that the government may have to make concessions in Student Loans and Stamp Duty for first time buyers, any tax gifts will have to be paid for somewhere.
In the 2016 Budget, the government pledged to reduce the corporation tax rate from the current rate of 20% to 17% by 2020. Given the uncertainty around Brexit negotiations and a public perception that big business is not paying it’s way, it’s unclear if any changes will be made.
It’s possible that the Chancellor may target pensions tax relief in order to maintain the state pension. With a study by the FCA revealing that almost a third of UK adults have no pension provision there is also talk that the Auto-Enrolment regime may be extended to the Self-Employed with deductions being made during Self-Assessment.