Queen’s Speech and Tax Legislation – What’s to come?

The Queen’s speech contained some key information around tax legislation in the current parliament.

There are some certain changes:

  • A National Insurance Contributions Bill will legislate for NIC changes announced in Budget 2016 and Autumn Statement 2016 will relate mainly to ‘disguised remuneration’ and also the abolition of class 2 NIC .
  • The climb down on the proposal to reform class 4 NIC for the self-employed, announced this year in March, will not be reinstated.
  • There will be a Customs Bill to ensure UK stand-alone regimes for Customs and for VAT post Brexit.
  • Certain items were also removed from the finance bill prior to the “snap” general election – in particular Making Tax Digital .

In relation to this, it was announced that there will be three finance bills in this parliament to implement budget decisions. The first of these finance bills will be the Summer Finance Finance Bill 2017, which could be published relatively quickly and we hope includes Making Tax Digital.

Without other detail, there was a statement that this bill will a range of measures including those to tackle tax avoidance. It remaons to be seen whether this includes widening the IR35 reforms to the private sector.

Following the pattern laid down by Chancellor of the Exchequer Philip Hammond, a Finance Bill will come in autumn 2017 with legislation which will come into force in March/April 2018.

And following this, another finance bill in autumn 2018, with provisions coming into force in March/April 2019

Article written by FCSA Business Partner, JustAccounts.

 

Image courtesy of Phil_Bird at FreeDigitalPhotos.net