The autumn budget was announced today (22 November) with a number of announcements that will affect businesses and first-time buyers. Here are a few key takeaways from the Chancellor of the exchequer.
National living wage increase 2017
The National living wage will rise from £7.50 to £7.83 for workers aged 25 and over in April 2018. The 4.4% rise will amount to an annual increase of £600 for a full-time worker. The minimum wage for workers under 25 are as follows:
- 21-24 – £7.38
- 18-20 – £5.90
- Under 18 – £4.20
- Apprentices – £3.70
The VAT Threshold will be frozen for two years and will remain at £85,000. However, the government will consult on whether the VAT system should be changed in order to encourage companies to grow but the chancellor does not want to change it for the time being.
Basic Rate increase
The chancellor has increased income tax threshold which will save basic rate payers thousands a year. The basic rate will increase to £11,850 (Currently £11,500) as of April 2018.
Higher rate threshold increase
The higher rate tax threshold is set to increase from £45,001 up to £46,350 which will allow people to earn more before their tax rate goes from 20% up to 40%.
As of today the stamp duty for first-time buyers has been abolished for homes costing up to £300,000. Those buying homes worth up to £500,00, however, won’t have to pay stamp duty on the first £300,000. This change applies to first time buyers in England, Wales, and Northern Ireland.