With the Spring Budget in March and an Autumn Budget set for the 22nd of November 2017 you could be forgiven for losing track in what has been a bumper year for Budgets. Not to worry, accounting software provider FreeAgent have their finger on the pulse and have put together this quick guide to straighten things out.
A bumper year for Budgets
The UK is the only major advanced economy in the world to make two major changes to its tax system each year. These have traditionally been announced at the start of the year in the Spring Budget and towards the end of the year in the Autumn Statement.
In 2016 the Chancellor announced that the UK was moving to a single fiscal event each year which would be held in the Autumn. 2017 has been the transition year, waving farewell to the Spring Budget and introducing the first ever Autumn Budget in place of the Autumn Statement.
2018: enter the Spring Statement
Don’t clear your diaries for Spring 2018 just yet, as there will still be a financial event in spring: the Spring Statement. Unlike the Autumn Statement of old, however, the Spring Statement simple be a response to the bi-annual forecast from the Office for Budget Responsibility and will be unlikely to include any major changes to tax legislation.
What does this mean for freelancers?
The Budget, now in Autumn, will continue to amend existing tax legislation in a way that will impact freelancers. While the announcement nearer to the start of the tax year, the Spring Statement, might prove less significant, it could still contain news that would be of interest to the self-employment sector.
A brief timeline of events
8th March 2017 – Final Spring Budget announced
22nd September 2017 – First Autumn Budget will be announced
Spring 2018 – First Spring Statement will be announced
Autumn 2018 – Second Autumn Budget will be announced
About the author
Emily Coltman is Chief Accountant at FreeAgent, the online accounting software specifically designed for freelancers, contractors and micro-businesses, covering everything from invoicing to tax.
