Personal Allowance Increase :
This April will see the personal allowance increase to £11,500 and the higher rate income tax threshold to £45,000. The Treasury says this means the amount someone can earn tax-free in 2017-18 will be over 75 per cent higher than in 2010.
How will this affect me? This is good news for employees of SMEs, as they will take home more of their monthly salary than in the previous tax year. Businesses will need to ensure they have the correct tax code for their employees.
National Living Wage :
Keeping in line with Philip Hammond’s Autumn Statement pledge, the National Living Wage is set to rise to £7.50 an hour from April 2017.
How will this affect me? SMEs will need to ensure they are paying all employees the correct new hourly wage from 6 April 2017.
Cash Basis of Accounting for Trading Income :
From April 2017 the entry threshold for the cash basis will increase from £83,000 to £150,000.
How will this affect me? The measure will increase the cash basis entry threshold to give more SMEs the choice to benefit from the cash basis simplification, which is an optional and simplified method for calculating taxable profits for trading businesses with straightforward tax affairs.