Published on: 8 Mar 2017
The Chancellor, Philip Hammond, has presented his Budget to Parliament. Although the Budget was relatively low key, other changes were already planned – see Autumn Statement 2016 . Here’s a summary of things that might affect you, but you can find out more on the BBC and Gov.uk websites.
Savings and investments
NS&I Investment Bond with a market-leading interest rate of 2.2%
The three-year bond will be available for 12 months from April 2017.
It will be open to everyone aged 16 and over with the flexibility to save between £100 and £3,000 over three years.
Lifetime ISA for those between 18 and 40
The Lifetime ISA will allow people to save up to £4,000 each year and receive a bonus of up to £1,000 a year on these contributions. Funds can be withdrawn tax-free to put towards a first home or saved for a pension from the age of 60.
Childcare and education
Tax-Free Childcare will provide up to £2,000 a year in childcare support for each child under 12, with £4,000 a year for disabled children up to the age of 17.
Working parents in England will also be able to apply for an additional 15 hours of free childcare for three and four year olds, bringing the total to 30 hours a week.
Free transport for children from poorer families who go to selective schools
Children aged 11 to 16 who get free school meals or whose parents are on the Maximum Working Tax Credit will get free transport to their closest selective school, if it is between two and 15 miles away from their home.
Investment in technical education for 16 to 19 year olds
New T-levels for 16 to 19 year old technical students will be introduced from autumn 2019. Students will be able to choose from 15 different routes such as construction, digital or agriculture. As part of the course, all students will take part in an industry work placement.
Maintenance loans for students doing higher-level technical courses at National Colleges and Institutes of Technology – like those available to university students – will also be made available.
Thinking of retraining
Investment for new academic research placements
1,000 new PhD places will be created, including in science, technology, engineering and maths.
New fellowships will also be created, including programmes to attract top global talent to conduct research in areas such as bioscience and biotechnology, quantum technologies, and satellite and space technology.
Loans for part time and doctoral students from 2018
The government will provide maintenance loans for people entering part time degrees, and doctoral loans of up to £25,000 to support higher-level study.
Working for yourself
More time for small businesses and landlords under the VAT threshold
Unincorporated businesses (businesses owned privately by one or more people) that have an annual turnover below the VAT registration threshold will have until April 2019 to prepare before Making Tax Digital (MTD becomes mandatory.
Under MTD, businesses will use digital software to keep tax records and update HMRC quarterly.
Tax rise for the self employed
Currently, the self-employed may have to pay both Class 4 and Class 2 NICs:
- Class 4 NICs at 9% are paid on profits between £8,060 and £43,000
- Class 2 NICs are paid on profits of £5,965 or more
- Class 2 NICs will be abolished
- Class 4 NICs will rise to 10% in April 2018 and to 11% in April 2019
Taken together, only a self-employed person with profits over £16,250 will have to pay more as a result of these changes.
Marking International Women’s Day
Returning to work
Working with businesses and the public sector, the government will invest money to increase the number of return-ships, helping people back into employment after a career break.
Combating domestic violence
Money will also support organisations working to combat domestic violence and abuse or supporting victims.
Childcare and nursery costs
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