As far as the recruitment industry was concerned, the 2016 Autumn Statement was extremely dramatic. The announcement of the public-sector reform of IR35 changed the world for many contractors, and stakeholders at every level of the supply chain have been vocal in their criticism of the reforms themselves, and their implementation
Dividend allowance: The tax-free dividend allowance will be reduced from £5,000 to £2,000 from April 2018*. A £2,000 dividend allowance will continue to mean that 80% of general investors pay no dividend tax, including those with sizeable investments (typically, up to £50,000). *Snap election.
The VAT Flat Rate Scheme makes it easier for small businesses to calculate the VAT they need to pay. Businesses can voluntarily register for VAT before their turnover reaches the £85,000 VAT registration threshold so they can make use of the flat rate scheme and have a cash advantage.