Important dates and changes for April 2017
As another new tax year begins, here are some important tax dates and changes to be aware of this month.
1 April
Auto-enrolment staging dates
Auto-enrolment staging date for employers who don’t have a PAYE scheme.
Business rates
Rate payers that occupy a single property with a rateable value of £12,000 or less will pay no business rates.
Corporation tax
Corporation tax reduces from 20% to 19%.
VAT
The VAT registration threshold will increase from £83,000 to £85,000. The deregistration threshold will increase from £81,000 to £83,000.
6 April
Income tax
The personal allowance increases from £11,000 to £11,500.
A £1,000 allowance for property income and a £1,000 allowance for trading income will come into effect from 6 April.
You won’t need to declare or pay tax if you have income from either source of less than £1,000.
If you have income above £1,000, you will be able to deduct expenses in the usual way or deduct the £1,000 allowance.
Inheritance tax
An additional nil-rate band of £100,000 will be introduced for property passed down to a direct descendant.
ISAs
The annual investment limit will increase from £15,240 to £20,000. The limit for a Junior ISA will rise from £4,080 to £4,128.
A new type of ISA – the Lifetime ISA – will be available for adults under the age of 40.
Individuals will be able to contribute up to £4,000 a year and will receive a 25% bonus from the government.
These savings can be used to purchase a first home once the account has been open for a year.
Alternatively, savings can be withdrawn for any reason from the age of 60. Withdrawing the funds at other times may lead a withdrawal charge of 25%.
Talk to a member of our team today about your tax obligations.
If you would like more information about tax planning services in Berkshire, please feel free to contact us and we will be more than happy to help.
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