Commenting on the current business rate system, Professor Michael Ben-Gad says: "Generally speaking, Economists do not like the present system of business rates as they disincentivise development and give preferential treatment to agriculture and other industries that may use land less intensively (in terms. A better system would place the burden of taxation on the value of the land itself, since unlike buildings the supply of the land itself is inelastic (fixed).". Commenting on the implications to the uk housing market the changes in stamp duty announced in today's Autumn Statement might bring, Professor Michael Ben-Gad says: "The short-run impact is likely to be a rise in house prices, because the immediate supply of housing is inelastic. "In the long-run, lower taxation should help spur a bit more house building and so in a few years' time, buyers may see some benefit. Of course at the very top, there will be an increase, so this is one way of undermining Labour's mansion tax argument.". Also commenting on the possible implications for the uk housing market of changes in stamp duty, professor of Economics, joe pearlman says: "I agree with Michael that the likelihood is that sellers will reap the benefits of this change in policy.
Contractors questions: How to prepare for
Empirically, we generally find the buy losses suffered by the losers smaller than this theory would suggest. Again, i think people are reluctant to express their concerns regarding culture and identity lest they be labelled bigots and xenophobes, and so gravitate towards economic arguments (no matter how tenuous) instead. Commenting on the news that the government has earmarked Bicester epaper as the site for a new garden city, andy Pratt, professor of Cultural Economy says: "Doing this in austerity times is problematic. Garden cities are classic keynesian investment in infrastructure and pre-investment for growth. Under contemporary administrations, this project is likely to not result in the necessary investment and there is a very real danger of just more green belt development of low quality housing, low quality of life and few jobs. In the 1920s, the development of Letchworth as a garden city, employed world leading housing designers, there was a strong environmental and self-sustainability angle and reliance on public transport - a world away from the uk today.". Commenting on the speculation that Osborne may have announcements about changes to business rates, Charles Baden-Fuller, centenary Professor of Strategy at Cass Business School says: "Business rates are intrinsically unfair because they are levied mainly on physical rather than digital capital and have disincentives. But, (and an important but business rates have low compliance costs, (they are easy to collect) and are fairer (all firms pay them). So comparatively they are the best of a bad bunch. "The real and key issue for the government is to ensure online retailers pay vat and corporation taxes - at present there is evidence that several large firms manage to evade, partially or fully, these important taxes. "Ultimately governments need to recognise high streets are changing and that fiddling about with business rates is not as good as intervening more directly to preserve the nature of high streets.".
Commenting on today's Autumn Statement, Steve schifferes, professor of Financial journalism at City University london, says: "Despite the headline giveaways, the government has actually tightened the public finances. "The headline stamp duty cuts and increase in the personal allowance have been more than compensated by increased taxes on banks and companies, leading to a net increase in government revenues of nearly 1bn. "In the longer run, the government is dangerously dependent on its forecast that borrowing costs on government debt will continue to stay at historically low levels if it is to meet its budget deficit targets.". Commenting on the proposed changes to migration benefits, michael Ben-Gad, Professor of Economics says: Dissuading people from coming here to claim benefits, though probably illegal under existing eu legislation, when implemented, will deter very few people from migrating, at least from within the. This policy is seemingly a reaction to increased support for ukip and I suspect that support is more about unease toward the threat migration poses to British identity and the changes it brings to cultural norms, than it is about economics. Like trade, migration creates both economic winners and losers among the absorbing population. The paper overall effect is probably a small net benefit, but we should expect to see a much stronger shift in income from unskilled to skilled, from workers to owners of business and property.
We are concerned by Mr Hammonds rhetoric on entry the issue. Get in touch with us at for professional. Or you can call. Managing Director, looking for more of summary the latest headlines on LinkedIn? In relation to vat in the march Spring Budget, the announcements were mainly around tightening legislation on avoidance, evasion and aggressive tax planning, together with the dates for the introduction of making Tax Digital for businesses, a policy which will, eventually, have widespread implications. Business finance, series: Expert Comment, city University london academics comment on what's inside george Osborne's red briefcase. First published Thursday, 4th December, 2014.
Conclusion: The impact felt among public sector contractors will probably level at 10 on the richter scale. I mentioned the drip-drip-dripping, and some in the contracting field, myself included as a contractor Accountant, predict its only a matter of time before the same measures will apply to all contractors. So come the budget in spring 2017, Id bet all the tea in China, india, and East Africa as well, that the chancellor will announce a lot more aimed directly at the contractor market. Anti-avoidance measures seemed to form a large part of this chancellors efforts to raise revenue, and the contractor and freelancer market Id predict is seen as the easy target: IR35, disguised remuneration, supervision direction and control (sdc off-payroll rules, intermediaries legislation (call them what you. I wasnt alone, andy Chamberlain, deputy director of policy at ipse, commented: Were very disappointed that the chancellor mentioned the self-employed contractors in the same breath as tax avoidance. He didnt acknowledge that the rise in self-employment has led to a reduction in unemployment. He talked about the self-employed in the terms of tax yield and tax awareness the self-employed are not self-employed in order to avoid tax.
The 4th edition of the cch
So how is he likely to go about doing so? At the budget 2016, the former Chancellor Osborne announced ratcheted up measures to stamp out disguised remuneration; the current chancellor in his Statement confirmed further measures to tackle rapidly rising incorporation and self-employment hitting tax receipts. New legislation will apply to public sector contractors and employers within the public sector, making them jointly and severally liable for non-compliance. To add insult to injury, the 5 tax-free allowance for those working in the public sector is to be withdrawn as well, to reflect the fact that workers no longer bear the administrative burden of determining whether the rules apply. Inappropriate use of the, vat flat rate scheme (FRS) thesis was targeted as well, now anyone using the vat frs, who provides services rather than goods, is likely to lose out. As of, a new.5 rate (rather than the 12.5 vat frs rate used currently) will be introduced for businesses with limited costs, such as many businesses providing services.
The tax advantages of employee shareholders status is abolished, in response to growing evidence it is being primarily being used for tax planning by high earners. This means that the capital gains tax exemption and the income tax and National Insurance contributions relief for shares awarded under Employee shareholder Status agreements will be closed down. Salary sacrifice and benefit-in-kind (BIK) perks are being cut back from (on company cars, health screening, mobile contracts, laptops, school fees, accommodation and these will be subject to the same tax as other taxpayers. However, empire the cycle-to-work, pension contributions, ultra-low emission cars, and childcare vouchers remain protected. And the chancellor announced a new penalty for those who enable use of tax-avoidance schemes, later successfully challenged by hmrc. Professional advisors of taxpayers discovered to be using aggressive or illegal tax avoidance schemes, or those that have introduced them to the scheme, will be penalised. The defence of having taken reasonable care by seeking the advice of a non-independent advisor will no longer stand up for anyone involved.
Also, hammond pledged an extra.4 billion to construct 40,000 more affordable properties. How do you view the autumn Statement? Is it helpful or detrimental to small businesses and landlords? Tell us in the comments below. Published on December 8, 2016, managing Director, exactly five calendar months after the uk voted to leave the uk, the post-Brexit.
Chancellor Philip Hammond delivered his Autumn Statement. He said he wanted to address the long-term weaknesses of the economy (the obr helped make that look poor housing, growth, and regional disparity, and to prepare the country for Brexit by maintaining fiscal discipline while offering investment for productivity as well. Did the chancellors Autumn Statement contain anything likely to directly impact on contractors? Were the anti-avoidance measures that have been drip-drip-dripping into the uk tax system over the last decade evident, and do you, like me fear anti-avoidance measures are shaking the contractor market, splitting apart, and destroying an important sector of the uk economy? No doubt, the budget in spring 2017 will reveal more. How will the autumn Statement Affect Contractors? Although the chancellor didnt focus on it in the autumn Statement, tax avoidance is still high on the list of priorities for the government. Mr Hammond stated that he expected anti-tax avoidance measures to raise an extra 2 billion over the forecast period.
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Richard Lambert, the national Landlord Association chief executive, said: Increasing landlords overheads, as well as limiting their ability to take their business expenses off their taxable income, is bound to result in rents rising. The right to purchase. Hammond announced a big regional pilot scheme of a right to purchase venture for council house daddy tenants. This will be offered to over 3000 people. Experts estimate that the bill for this venture will be 250 million over a five year period, with housing associations receiving reimbursements for the price reductions tenants will get on the properties. Building houses, hammonds speech included a pledge to provide.3 billion for housing infrastructure. Reportedly, this will allow as many as 100,000 new houses to be built in areas of high demand. This could signal hope for the construction industry after official data showed house building stalled after growing economic uncertainty by builders following the vote to leave the.
Furthermore, hammond indicated a crackdown on people who use vat flat rates inappropriately. What this actually means though, is not yet entirely clear. Insurance considerations, lastly, hammond said that reviews tax on insurance will increase from 10 to 12 during June 2017. This is an increases insurance premium tax (IPT). If you want to find out how the autumn Statement will affect tradesman, please click here. Fees for Letting Agents, as far as landlords go, the most publicized headline of the statement was the ending of fees charged by letting agents, to be implemented in the near future. Hammond said: Landlords hire letting agents, so landlords ought to pay these fees. Nonetheless, straight after this announcement, groups representing landlords said that this policy might cause rents to.
there will be a rise in research and development of 2 billion. The Economys Current State. The budget Responsibility Office expects growth of two percent over the next five years. To be more precise,.1 is predicted for 2016,.1.The obr reports that the uncertainty caused by Brexit is the reason behind the worse than previously expected forecasts. Notwithstanding, the Chancellor did emphasize that forecasts over the medium term still predict a rate of growth over imf expectations for countries like germany and France. Tax Considerations, once parliament ends, the personal tax free allowance will be 12,500, and the top rate threshold will increase to 50,000. After this, the allowance will increase at least relative to inflation. People who receive benefits were given a boost, with the announcement of cuts to the taper rate for Universal Credit.
Investment in Start-ups, concern was expressed by the Chancellor that larger competitors were buying uk start-ups before they had the opportunity to grow to scale. He announced as a means of combating this, a new investment in the British Business Bank of 400 million. The eventual intention here owl is to unlock a 1 billion total investment. Infrastructure Spending, a series of pledges were made by the Chancellor on infrastructure spending which includes: In local transport networks in England,.1 billion investment. On digital infrastructure including fibre broadband and 5g, at least 1 billion. For the English regions,.8 billion. To the Oxford to cambridge Expressway research and development, a commitment to building. Pointing out that it lags behind major competitors in the eu, the Chancellor emphasized concerns regarding uk productivity.
Fears grow about tax attack on pensions telegraph
While care has been taken to ensure the accuracy of the contents of this newsletter, no responsibility for loss occasioned to any person acting or refraining from action as a result of any statement in it can be accepted by the authors. Readers should take specialist advice before entering into any specific transactions. Will the autumn Statement 2016 benefit you? Last week, philip Hammond, Chancellor of the Exchequer, delivered the autumn Statement marking his first big speech since taking on his new role. In addition, he outlined the latest economic predictions from the budget Responsibility Office since the Brexit vote and with reports of consumer spending in decline, it was a significant moment for Britain. Dont worry if you missed out on all the fuss; we have summarised some key points lined for you: Wages, as announced prior to the speech, from April 2017 there will be a rise in the national living Wage from.20.50. The capacity of uk export Finance will also be doubled by the government. They are the body assisting exporters to win contracts and then fulfil them.