IR35 extended to the private sector
Medium-sized and large businesses will become responsible for assessing an individual’s employment status and determining whether the off-payroll rules apply.
The reform will not apply to the smallest 1.5 million businesses and will be introduced in April 2020.
Business rates for smaller firms
Small retail businesses in England with rateable values below £51,000 will see business rates reduced by a third from 6 April 2019.
The Government estimates that 90% of small retail businesses, such as pubs, independent shops cafes, will benefit.
Apprenticeship levy
Large businesses that use the apprenticeship levy will be able to invest up to 25% of their levy to support apprentices in their supply chain.
Some employers will pay half of what they currently pay towards apprenticeship training – from 10% to 5%. The Government will pay the remaining 95%.
Annual investment allowance
The annual investment allowance is to increase five-fold from £200,000 in 2018/19 to £1 million.
Also, from October 2018, businesses will be able to deduct 2% of the cost of any new non-residential structures and buildings off their profits before they pay tax.
Entrepreneurs’ relief
To benefit from entrepreneurs’ relief, individuals will need to meet the qualifying conditions for a minimum of two years – up from 12 months previously.
Private residence relief
From April 2020, lettings relief will be reformed so that it only applies to those who are in shared occupancy with a tenant. The final period exemption will be reduced from 18 months to nine.
VAT-registration threshold
The VAT-registration threshold will remain frozen at £85,000 until April 2022.
An in-depth Budget report will appear on our website on Tuesday 30 October 2018.