There are number of areas in the Autumn Budget that will impact on the retail sector.
The reduction in the VAT registration threshold which had been suggested prior to the budget was avoided, at least for now, with the threshold frozen at £85,000 for the next two years whilst the government consults on the matter.
Making Tax Digital is edging closer and from April 2019, businesses trading above the VAT registration threshold will need to report their VAT information through this system.
The Chancellor announced further measures aimed at reducing the impact of increases in Business rates including:
From April 2018 increases in Business Rates will be calculated using CPI rather than RPI.
Legislation will be introduced to reverse the impact of the so-called “staircase tax”. This is where the Valuation Office Agency (VOA) argues that where a building can be split into several smaller units, its Rateable Value is higher.
The £1,000 business rates discount for Public houses with a Rateable value of up to £10,000 will be extended for a further year from 1 April 2018.
The VOA will in future revalue non-domestic properties every three years rather than five. Property owners and/or tenants will also be required to provide regular updates to the VOA on the use of the property and rent payable. The Government will consult on these changes in spring 2018.
There was also the announcement that the national living wage will increase to £7.83 from April 2018, giving an estimated £600 increase in salary for the lowest paid individuals, but creating an additional cost for businesses, especially when the additional employers National Insurance and pension costs are taken into account.
For more information or advice about how the Budget impacts on retail, please get in touch.
