The majority of the budget
meant business as usual for those in the recruitment sector. By way of a reminder and to keep the facts front of mind this is our summary of the November 2017 Budget and the key points that the recruitment sector need to bear in mind and some food for thought:
Further consultation into IR35 – Off payroll working
The government reformed the off-payroll working rules (IR35) for engagements in the public sector in April 2017 and it is possible that this is extended to the private sector. This means that individuals who effectively work as employees are taxed as employees even if they choose to structure their work through a company. The government will carefully consult on how to tackle noncompliance in the private sector. Watch out for their report due to be published in 2018.
The number of people in employment is forecast to continue to increase to 32.7 million in 2022 – a further 600,000 people in work by the final year of the forecast.
3 million more apprenticeships to be in place by 2020
Do you recognise this potential within your sectors and can you help your clients plan accordingly? Are employers amending their recruitment plans in line with these predictions?
Tax-free personal allowance on income tax to rise to £11,850 in line with inflation
April 2018 and Higher-rate tax threshold to increase to £46,350
National Living Wage to rise in April 2018 by 4.4%, from £7.50 an hour to £7.83. As per the usual and expected changes.
£30m to develop digital skills distance learning courses The investment in this sector provides new opportunities for the workforce to develop their skills/retrain and bring knowledge to sectors that are lagging behind in digital.
VAT threshold for small business to remain at £85,000 for two years
£2.3billion allocated for investment in Research and Development (R&D)
Removal of Capital Gains Indexation Allowance for companies from 1 January 2018.
All points to bear in mind for your own business.
If you have any questions on how we can help you with your funding and back office support, so you can concentrate on running and growing your business, please do give us a call on 01943 883 263 or send us an email firstname.lastname@example.org.