Tax changes for small businesses and freelancers

The new tax year has brought a fresh wave of tax bracket and regulatory changes that many small businesses and freelancers will need to adapt to.
Some of the changes will have a positive impact and some will be more negative.
We have summarised the most important changes and detailed who they are likely to affect.

At the Autumn Statement, the Chancellor Philip Hammond announced changes to the VAT Flat Rate Scheme that could cost some small businesses thousands of pounds a year.

The Flat Rate Scheme was initially designed to simplify record keeping and get more small businesses paying VAT.

The government is now worried about abuse of the system so the scheme’s advantages are being watered down. But in tackling abuse of the scheme the Chancellor will increase bills and bureaucracy for thousands of innocent companies as well.

Experts have claimed that the first revaluation of business rates since 2010 will benefit online retailers and high street chains, to the detriment of offline businesses and independent retailers.

Due in April, the controversial revaluation was initially welcomed by ministers.