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Budget 2018: What caught your eye?

Did spreadsheet Phil 'excel' in his Budget speech?

At over an hour and a quarter this was Philip Hammond's longest Budget speech, and there are certainly plenty of measures in the red book to keep the tax mavens happy. But will it be enough to keep the pre-Brexit economy firing? What caught your eye today?

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29th Oct 2018 19:58

On the subject of owners not paying business rates on public toilets and being a rather uncouth sort of chap myself, I enjoyed his jokes of "it being the only announcement that wasn't leaked" and that "local authorities could now relieve themselves".

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By SKCOX
29th Oct 2018 20:36

"Lettings relief limited to properties where the owner is in shared occupancy with the tenant", says BBC. Gave me a fright.

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By NH
30th Oct 2018 07:01

"A budget for hard working families who live their lives far from this place and care little for the twists and turns of Westminster politics"
He then proceeded to talk for over an hour about those politics that 99.9% of the population cares little for, pretty much everything in the budget was politically motivated and not what is best for the UK financially.
Not much changes

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By raju m
to NH
30th Oct 2018 16:34

All budgets are politically motivated.

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30th Oct 2018 07:44

Hard to say, isn't it ?

The BBC sound bites are so bland they could have several interpretations.

I'll wait for the more detailed reviews.

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30th Oct 2018 08:45

NMW - the so called 4.9% increase is actually just 3.05% net, after taking into consideration tax, NI and AE.

EA will not, on the face of it, be available in year one for new employers.

Putting voluntary Returns on the same basis as statutory Returns simply increases the potential for penalties.

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to SteLacca
30th Oct 2018 08:57

SteLacca wrote:

NMW - the so called 4.9% increase is actually just 3.05% net, after taking into consideration tax, NI and AE.

<

Well, that depends. A full time NMW job only just scrapes past the tax threshold. A mum with a part-time job to fit in with school hours may well get the whole 4.9%.

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to lionofludesch
30th Oct 2018 09:40

True, but 40 hour working week at NMW (current rate) is gross £16,286, so a fair chunk past the thresholds for tax, NI and AE, and in the modern economy, I imagine it's more common that people like to admit.

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By raju m
to lionofludesch
30th Oct 2018 16:39

It will cost the employers 4.9%. plus employers NIC on the 4.9% increase . nearly 6%

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to raju m
30th Oct 2018 16:48

Surely it's 4.9% + 13.9% NIC + 3% Pension, which is 21.8%.

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30th Oct 2018 09:15

From 06/04/2020 CGT returns (& possibly payment) within 30 days for UK residents on residential property disposals will likely catch a few out & result in massive penalties like it has for non-residents.

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to Wanderer
30th Oct 2018 09:44

Probably more so. With the restrictions on LR/PPR, sales of personal homes could be caught, which you can guarantee most people won't think about.

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30th Oct 2018 09:28

What caught my eye was, from April 2020, the changes to insolvency law re some monies due to HMRC.
In effect where a business is acting as tax gatherer for the government those monies will be preferential debts. So VAT, PAYE deductions for tax and employees' NIC, and CIS deductions which have not been paid over to HMRC will be preferential debts. (But, for example, corporation tax will not.)
Also there are proposals to create personal liabilities for taxes avoided or evaded by insolvent companies. That will need some careful thought!
David

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By DJKL
30th Oct 2018 09:53

What caught my eye was the hint that this was an election budget and we are possibly going back to the polls sometime in the next six months or so.

I cannot get excited with £12,500 personal allowance and higher rates starting at £50,000, whilst up here we will get the former they will likely not give us all of the latter,

"ye wull ha hae yer allowance increase, a band increase, well that would be migh excessive, chust be grateful we dinnae tak maur"

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to DJKL
30th Oct 2018 14:42

it smelt very pre-election to me.

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30th Oct 2018 09:56

Does the fact that almost everything comes in from April 2020 give them wriggle room so that if Brexit does not goes as planned (whatever the 'plan' is) they can go back on it all?

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30th Oct 2018 10:22

Did MTD get a mention at all in the budget yesterday?

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By DJKL
to Glennzy
30th Oct 2018 10:50

I did not hear it mentioned so that is it, we're doomed I say, doomed.

I did not actually expect any delay announced, if there is to be a delay ,which I am not sure there will be, I think it will not be announced until after the ongoing H of L select committee deliberations are over.

https://www.accountingweb.co.uk/any-answers/going-to-the-house-of-lords-...

I think my plan to only have 4-5 in house employed accountancy roles is still on track- so long tidying up post event mess and hello only proactive , ahead of the event, FD roles as I head to retirement within the next 7.5 years.

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to Glennzy
30th Oct 2018 12:15

Not a single nod, I was waiting through the whole 75 minutes of bad jokes and campaigning.

The big one for our clients is the IR35 change, which was hardly unexpected but is still a worry. While the rules of who's caught and who isn't don't change, the way it's been applied in the public sector shows that the engagers will often apply a "just in case" approach and tax at source. HMRC still haven't provided a test that's fit for purpose for contractors to use to justify their status and there's no clear process for reclaiming National Insurance incorrectly deducted.

I expect there's a number of our clients outside IR35 who will find themselves dumped inside it by customers who aren't 100% sure one way or another and who don't want to take a risk.

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to Glennzy
30th Oct 2018 13:34

Nary a mention in the speech.

Not a single reference in Red book either.

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to Glennzy
30th Oct 2018 14:41

I assumed its omission meant some back peddling was likely.

He would normally be expected to re-announce his flagship project several times before it happens.

I could not see in the redbook any details of the expected VAT windfall come April when its all digital and generating more tax or some such like fantasy.

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to ireallyshouldknowthisbut
30th Oct 2018 15:39

Thats what I was thinking, and the fact that no adverts have been on TV, the problems with Brexit etc I thought that it was maybe going to be pushed forward again.

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By raju m
to Glennzy
30th Oct 2018 16:44

NO mention of MTD. Hell!!

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30th Oct 2018 15:23

I'm going to lose at least 6 clients due to these 'new' IR35 rules. But as other members have commented - it came as no surprise and was just a matter of time.
I did think it was unnecessary to include the comment under HMRC's "Budget Tax related documents" online that the new rules were 'To help people comply with the existing rules" - HMRC being considerate to their customers as usual.
The 'large companies' will wait until Apr 2020 before putting whoever they really want to work for them on the books.
Abolishing lettings relief was a shock and is going to bring in a lot of money for PH -poss that is where he's getting all the money for repairing roads.
As ever ... hit the landlords - havent they been attacked enough in the past few years?
The media keep saying that this measure was against the 'accidental landlords' but its not only those that will be affected.

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By NH
to Jennifer Adams
30th Oct 2018 15:35

Abolishing lettings relief was a shock and is going to bring in a lot of money for PH

What makes you say that, my first thought was surely that's not going to bring much in and is just another stunt?

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By DJKL
to NH
30th Oct 2018 16:19

Its potentially a big number ( £40,000 @ 28%=£11,200) though there are maybe not that many claims and of course possibly double the above at stake for the married couple- a chunky bit of tax.

If the property market was not so slack/subdued over winter months it might be beneficial, if selling up in mind anyway, to accelerate the process before 5 April.

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