Budget 2017 Where Are the Stealth Taxes

Published / Last Updated on 09/03/2017

Budget 2017

Where Are the Stealth Taxes?

With increased spending on the NHS, which takes up around one third of total UK spending yet the Government trying to reduce public debt and prepare a ‘war chest’ for Brexit, we looked at the small print in the Budget report to establish where you are going to be taxed more to fund this given that income tax rates have not increased and personal allowances are rising.

Insurance premium tax will be raising nearly £1bn pa by 2020/21.
Corporation Tax relief on interest debts and offsetting losses will save over £1.2bn a year by 2020/21. This is to stop foreign companies trading in Britain, borrowing money rather than investing money to develop their business and also then offsetting losses from overseas parent businesses. A well-known coffee/café firm has not paid taxes in the UK for 10 years!
Little help for the young. Changes to apprenticeship funding will save over £3bn pa by 2020/21.
Digital Tax records efficiency will save nearly £1bn pa by 2020/21.
Changes to social housing will save around £0.75bn pa by 2020/21.
Likewise, reduced TV licence help for over 75s will save £0.75bn pa by 2020/21.
Cars are another big deal: increased new car excise duty will raise just under £1.75bn pa by 2020/21. A hit on foreign car manufacturers.
Company Car Tax increases will raise an additional £0.8bn pa by 2020/21. Another hit on foreign car manufacturers.
Tax credits only applying up to 2 X children will save nearly £2bn pa by 2020/21.
Even a ‘pop’ soft drinks levy will raise £0.4bn pa by 2020/21.

Remember, these figures are year on year, this is not a cumulative saving over the next 5 years, these are yearly savings/increased revenues.

Here’s a summary of some of the ‘stealth’ taxes that will fund the NHS, create a Brexit ‘war chest’ and hopefully reduce the national deficit, now running at £66,000 per household:

	Revenue increase £m 2017/18	Revenue increase £m 2018/19	Revenue increase £m 2019/20	Revenue increase £m 2020/21	Revenue increase £m 2021/22
2% Increase Insurance Premium Tax	£520m	£840m	£840m	£845m	£855m
National Insurance Increases	£180m	£150m	£155m	£155m	£155m
Remove Salary Sacrifice Advantages	£85m	£235m	£235m	£235m	£260m
Pension Money Purchase Allowance down to £4kpa	£65m	£70m	£70m	£70m	£70m
VAT Flat Rate Scheme up to 16.5%	£165m	£135m	£135m	£130m	£125m
Soft Drinks/ Pop Levy	£0	£385m	£390m	£385m	£380m
Corporation Tax Restriction how much debt interest can be offset against profits	£1105m	£1140m	£1080m	£980m	£1020m
Corporation Tax Reform Loss Relief	£495m	£355m	£305m	£255m	£215m
Apprenticeship Employer Support	£2630m	£2720m	£2810m	£2925m	£3045m
Working away temporary accommodation expenses	£255m	£235m	£245m	£260m	£270m
Digital Tax Records/Systems	£0	£10m	£400m	£805m	£965m
Social Sector Housing support aligned with Private Sector Housing	£0	£440m	£570m	£660m	£740m
Vehicle Excise Duty (new cars)	£175m	£675m	£895m	£1340m	£1735m
Company Car Tax 2% increase 2017/18/19	£200m	£410m	£420m	£420m	£445m
Company Car Tax 3% increase 2019/20	£0m	£0m	£305m	£315m	£325m
Over 75’s TV Licence	£0m	£180m	£430m	£735m	£765m
Tax Credits limited to 2 Children	£310m	£765m	£1205m	£1615m	£1990m