toggle menu
Menu
Contact Us

A Budget for Hard-Working Families – the Strivers, Grafters and Carers….

30th Oct 2018
Business, Employment Law, Human Resources

Chancellor of the Exchequer, Philip Hammond’s opening statement which was greeted by laughter in the House with the claim that it will  “pave the way for a brighter future”.

With talk of the economy and Brexit being a daily event, the Autumn statement has never been more in the focus for business owners. With £20bn needing to be found for the NHS alone and government debt to be controlled, there will certainly be pain somewhere.

Whatever your political position, everyone can agree on one issue – the budget is definitely a challenge. Balancing promises made, gaining favour and being “positive” can be no easy feat.

Whilst it may be considered the most significant government publication of the year, we were already aware of most of the detail and indeed today has been mainly a confirmation of what we already knew and statistics showing achievements and optimism – from Hammond’s view at least.

Without political prejudice or comment (unlike Hammond’s humorous quips), here are the key points from the Budget on 29th October:

Income Tax Thresholds – The Conservative manifesto stated that the first £12,500 of earnings will be income tax-free by 2020-21 taking a stepped approach to get this level and that the higher rate tax band will be increased to £50,000.  It was announced that these thresholds would be moved a year early and be in place by April 2019. A welcome treat for us all.

Digital Services Tax – A new UK digital services tax to be introduced on UK generated income for those companies with £500m plus global revenue. This is quite a radical move doing this as a stand-alone government, and Hammond commented that should there be a globally agreed solution it would be considered but that he would not wait to introduce this tax.

Business Rates – A fantastic 30% reduction in business rates to help our local high street. For the next two years, properties with a rate value of £51,000 or less will benefit from this reduction. This gives an annual saving of £8,000 pa.

Public Services Development – PFI will be abolished for future projects whilst existing contracts will be honoured, and managed through a newly created Centre of Excellence, focusing on healthcare PFI initially.

NHS – Confirmation of the additional £20bn announced on the NHS’s 70th birthday, with a commitment to target improvements in mental health services including a new crisis service in every A&E, more mental health ambulances, a 24-hour helpline and more safe havens in the community.

Universal Credit – Additional funding to support the transition to Universal Credit and an increase of £1,000pa once fully rolled out.

VAT – the threshold of VAT remains as is for a further two years. Startups – start-up loans and new enterprise allowance to be extended to 2021

Apprenticeships – the apprenticeship levy to be reduced from 10% to 5% for smaller businesses taking on apprentices.

And for significant announcements that was pretty much it, leaving the studios of experts and reporters desperately trying to find something to say of significance.

Other announcements included:

£400m one-off capital payment directly to schools. This equates to £10,000 for a primary and £50,000 to secondary schools.

Duty freeze on fuel (for the ninth year) and alcohol (to protect the local pub). Although slightly worrying if a wine drinker as only mentioned cider, beer and spirits. Tobacco duty to continue to rise by inflation plus 2%

National Living Wage to rise by 4.9% to £8.21 – an increase of £690 pa. It was noted that the proportion of low paid jobs at its lowest since 1997.

Further investment for 650,000 new homes and relaxation of planning controls to allow conversion of commercial properties into residential

New national rail card for people age 26-30 reducing the cost of rail travel to be introduced

Tax on certain plastic packaging manufacturing and importing. (No tax on the use of plastic cups to yet be introduced with Hammond commenting that he will monitor the impact of the private retailers introducing such a “tax” before taking action).

£10million to deal with abandoned waste.

Local councils will have more resources and controls to help elderly, children in care and disabled through a £650 million grant funding for social care in 2019-2020.

£10million investment to Air ambulance services

£420 million immediately to local highway authorities for potholes, bridge repairs and highway repairs.

Private residence relief for capital gains tax to be altered to only apply if the owner is resident in the property alongside the tenant.

April 2020 large and medium-sized businesses must abide by off-payroll working rules

Despite speculation in the press over the past few weeks, no details were verbally given on national insurance, pension contributions, buy-to-let tax relief, the industrial strategy although comments were made that details would be published.

And in true British humour style, we mustn’t forget the announcement of the introduction of a mandatory business rate relief on public toilets. Hammond giggled at his own jokes and puns, which just kept coming and coming, to be received by a groaning House.  Probably the most memorable part of the speech except for the omission of the word Brexit.

The Toolkit Tour

Take the MAD-HR Toolkit Tour

An affordable, comprehensive HR portal. Access all the latest documents you need as an employer.

Book Demo
Christopher Durand
Christopher Durand
14:28 23 Aug 18
We have used MAD-HR a number of times and I have been very impressed by their knowledge and expertise, which is invaluable for us a small and growing business. All the work they have done for us, and this includes not just contracts and handbooks etc, but also training to make us a better more thoughtful team, I regard as a sound business and personal investment. We intend to make this an on-going relationship to help us develop as a business.read more
Aisleen Marley
Aisleen Marley
14:48 24 Oct 17
Carole immediately grasped my situation and quickly set about creating the perfect document to help drive my business forward. She has a wealth of experience that she was able to apply to my current and future business goals in order to come up with the goods! The process itself was extremely straightforward with a clear system for booking in a call with Carole, where she then talked me through my options. Thoroughly recommended.read more
Rachael Martin
Rachael Martin
19:40 03 Jul 17
Carol offers outstanding support and advice to ensure you are meeting legal requirements. Her toolkit is a very worthwhile investment as it ensures your documentation is up to scratch and you have all that you need in place! Highly recommended - outstanding service.read more
ClarkeCare Ltd
ClarkeCare Ltd
14:03 22 Jun 17
I recently attended a Suffolk Brokerage Registered managers meeting and the very lovely Charlotte from MAR HR was there to give a presentation. Charlotte was fantastic and delivered a great presentation. Her knowledge around all things HR where clearly evident and she answered some tricky questions really well, giving clear, helpful advice. I would highly recommend anyone thinking of gaining support for their business to speak to Charlotte. I know we at ClarkeCare will be engaging their services in the near future. Thank you Charlotte :-)read more
Hana Dickinson
Hana Dickinson
10:36 26 Jul 16
I love working with Carole and the team at MAD-HR. They are so knowledgeable and responsive. I feel really confident that my HR (and therefore my business) is in safe hands. We've had a few issues that we've needed help with and Carole has been right there, with great advice and useful resources (via the Online HR Toolkit) that have made my life so much easier and my blood-pressure so much lower. Thanks Carole and team. You rock!read more
Next Reviews

Brilliant service and advice from MAD-HR.   Thank you so much, you’ve made the process of taking on our first employee an absolute breeze! Highly recommended.