Our experts have been looking at what the Chancellor could, should and shouldn’t do at next week's Autumn Statement.
National Insurance, PAYE & self-employment
Blick Rothenberg partner Genevieve Moore suggests:
- "The Chancellow could move corporate taxation closer to PAYE, by introducing monthly corporation tax payments for all companies. This could be extended to self-employed individuals and individual landlords, as an extension to the Making Tax Digital arrangements already proposed.
- National Insurance exemptions should be provided to employers that are training employees for qualifications, to encourage businesses to invest in training staff and help set off the costs of providing the training/exams.
- The Chancellow should reverse the impact of cliff-edges in the UK income tax system, such as the phasing out of the personal allowance over £100,000, to reduce punitive tax rates applying to specific income bands.
- The National Insurance and personal income tax thresholds should be aligned."
Blick Rothenberg partner Nimesh Shah comments:
Corporate tax, businesses & start ups
- "The Chancellow should scrap the personal savings allowance and make bank interest completely exempt from tax.
- The ISA regime could be extended further with the introduction of a ‘Workplace ISA’ whereby employers contribute to an ISA for employees."
Anti-avoidance and evasion
- Rob Pullen, senior manager, comments: "The Chancellor should reduce corporation tax to 10% for companies operating in areas identified as specific enterprise regions in the UK to encourage businesses to establish in these areas and encourage growth and employment where it is most needed. Following Brexit such flexibility in the tax system should be possible without it being regarded as illegal state aid under EU law."
- "He should reduce the interest rate on government start-up loans (currently 6%) and extend the arrangement to businesses which have been trading for longer than 24 months" suggests partner Genevieve Moore.
- Manager Isobel Clift comments: "The Chancellor could introduce more anti-avoidance measures in response to the consultations that took place during 2016 regarding the requirements to correct and asset based penalties."
- Nimesh Shah: "The UK's tax system should be updated and simplified. A revamp to some of the legislation is well overdue; it is not only outdated but it also does not work well with more recent additions."
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