Hi <<First Name>>,

As always, the Autumn Statement contains a lot more measures than those picked up by the media. For me, the biggest surprise was the change to the flat-rate VAT scheme from APRIL 2017, so not that far away. It's obviously designed to make sure that the scheme is used for its original purpose of simplifying administration rather than also adding a small slice of extra profit to businesses that predominantly sell time. There will be a lot of unhappy consultants out there today.

The Chancellor noted in his speech that the Office for Budget Responsibility has highlighted the growing cost to the Exchequer of incorporation as tax revenues are eroded. The government will therefore be considering how to ensure that the taxation of different ways of working is fair between different individuals, and sustains the tax-base. They will consult in due course on any proposed changes. I thought the changes to the way in which dividends are taxed took care of that, but apparently not.

Our summary of the 2016 (and last!) Autumn Statement can be downloaded here. As always, feel free to forward this mail it to any friends or colleagues who you think may want to read it.

Kind regards,

Mike

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