The live highlights as the chancellor Philip Hammond makes his first and last Spring Budget, keep refreshing to read more! MTD: postponed for small business by one year, NICs to increase for the self employed and dividend allowance decreases to £2k in 2018.

The UK has robust growth and record employment and this budget is to prepare strong and stable foundation ahead of Brexit.

  • Britain's economic growth in 2016 second only to Germany. 
  • Government debt, poor qualified school leavers and just about managing families still major issues.
  • OBR forcasts growth of 2% this year but will drop to 1.6% before rising back to 2% in 2020.
  • OBR: net public borrowing set to fall from 3.8% to 2.6%, then to rise ahead of Brexit before reducing again.
  • Britain's total debt is currently 1.7 trillion pounds: this budget is self-funding.

Corporation tax

  • Rate cuts as previously announced: no further reductions.
  • R & D regime: measures to reduce tax burdens.
  • New high tech grants for disruptive technologies, 5G hub and full fibre broadband.

Making Tax Digital

  • Postponed by one year (i.e. to 2019) for small business with turnover below the VAT threshold.

Business Rates

  • Will look at reform of future revaluation metrics
  • Any business coming out of small business rate relief: increases capped to £50 per month.
  • Pubs: £1,000 discount if rateable value is lower than £100,000
  • Local Authorities given a discretionary fund to assist businesses adversely affected.

The Self employed 

  • National Insurance rates to increase. 
  • Class 4 NICs to increase to 10% in 2018 and then 11% in 2019. Class 2 
  • Those with income of less than £16,250 will see a decrease in their NICs bills.

Personal service companies (PSCs)

  • Sounds like some measures are being considered but uncertain from speech if this is simply limited to changes to the dividend allowance.


  • Tax-free dividend allowance reduced to £2,000 from 2018.

Personal allowance and basic rate bands

  • Allowances to rise moderately (as previously announced the aim is to set the personal allowance to 12,000 by 2020). 


A series of measures including (but not limited to):

  • To ensure income taxed as income and not capital.
  • VAT on roaming charges
  • Enhanced penalties for professional enablers of tax avoidance schemes

Non-tax highlights:

  • Support for women's charities
  • Powerful mayors for the cities
  • Funding for midlands
  • Competition for local authorities to devise their travel plans
  • Investment in schools and also to create 110 more selective free schools
  • A new qualification: the T level for apprentices, with maintance loans for higher training.
  • DFE pilots in retraining.
  • £2b new funding for social care over two years.









Not the budget: good news for personal service companies (PSCs) working in the public sector: HMRC concedes that its guidance for corporation tax relief did not make any sense. PSCs may now take the net direct deemed payment as turnover.