Love your heart

Love your heart

Every February the British Heart Foundation celebrates Heart Month.

Heart Month was created to inform and highlight the dangers of Heart Disease. Heart Disease is responsible for more than 73,000 deaths a year. 2.3 million people are living with CHD (Coronary Heart Disease) and 2 million people are affected by Angina.

Sadly, Heart Disease is known as the ‘silent killer’. Unlike many other serious conditions, you can have a heart condition but you may not suffer from any symptoms. Therefore, people are unaware that they are suffering from it.

If symptoms do appear they could include:

  • Chest pains
  • Shortness of breath
  • Fatigue
  • Faintness

However, not everybody would have these as they vary from person to person.

What is the risk to me?

Not to put a doom and gloom on things, but Heart Disease could affect everybody. It is not an old person’s disease. If you are or have been suffering from any of the above symptoms, it is advisable to get it checked out by your doctor.

As a freelancer or contractor, we know how much energy you put into working on your client’s projects. A recent survey showed that 53% of contractors had not taken a sick day in the last 2 years. This doesn’t mean that contractors don’t get sick. It means that even when they are sick they carry on working, even if it means that it could take them longer to recuperate.

Your busy lifestyle means that it is very easy for you to ignore or not notice when you don’t feel well.

It’s important to stop and take stock of our health every now and again. It could save your life.

Prevention is always better than cure.

Consider doing the following to help prevent Heart Disease:

  • Having a balanced diet
    Incorporate lots of fruit and veg into your diet.
    Cut back on sugary foods and drinks.
    Reduce the amount of saturated fats you eat.
    Include foods that contain unsaturated foods.
  • Get active
    Be aware of how often (or not) you move.
    Go out for a walk at lunchtime.
    Take the stairs instead of the lift (maybe not if you are on the 14th floor, though!)
    Join a gym.
  • Maintain a healthy weight
    If you eat a balanced diet and exercise regularly you should be able to maintain a healthy weight. If you are unsure what your ideal weight should be, ask your doctor. Avoid fad diets and extreme exercise routines.

And, if you do smoke, it is best to think about stopping.

For more information on Heart Month and Heart Disease, visit the British Heart Foundation website.

For the love of contracting

February is a month of love and winners.

February 14th is Valentine’s Day, the day we recognise and spoil our loved ones. February is also about celebrating winners; the Super bowl took place on 5th February and the Oscars take place on 26th February.

We thought it would be timely to post our article on why people love contracting and how they made it a successful career for them.

Contracting is not suited to everybody, it can be unpredictable, you might be offered several contracts at once, or, you might be without a contract for months. This unpredictability can put some people off taking a contract role. They like the feel of security that a permanent role gives and they feel a sense of comfort from the fact they will receive a monthly wage.

For those who embrace the contracting lifestyle, they can enjoy:

  • the ability to decide what projects they work on, when and where
  • the variety of projects they can choose from
  • the variety of people they get to work with
  • the ability to learn new skills from other contractors
  • the option to work hard for a period of time and then take an extended period of leave
  • having control over their career
  • the potential to earn good money
  • not having to deal with office politics

If you are thinking of becoming a contractor, our website has a wealth of information that explains the best way to set yourself up as a contractor.

We asked a number of contractors what they did to make contracting a successful career route for them. This is what they told us:

Do what you say you would do, and then some
Fulfil everything the client asked for in the brief and then add a little extra in.

Charge what you think your service is worth
By charging too little you are undermining your expertise, and if you over charge, the client may not be able to afford you.

Make an effort to fit into the team
You will probably be working alongside permanent members of staff and maybe other contractors. You do not want to alienate yourself from these people. This could be noticed by the client and work against you when it comes to contract renewal.

Show the client that your services are adding value
Let the client know what you are doing and the results you are achieving.

Market yourself 
As a contractor you have to think of yourself as a business and market yourself as one. Think about creating a website for your contracting business, have a presence on social media or even create your own blog where you write about things that are happening in your industry.

Network
In person at relevant industry events and online as well.

Enjoy what you do
If you are not enjoying it, don’t do it. How happy you are in your role will show through in the quality of your work.

If you are thinking of entering the contracting world for the first time and are looking for advice on what is the best route for you, give our team a call on 020 8952 2234 and they will be delighted to discuss this with you. 

Scale up your career using social media

In December we published an article ‘Why contractors need to be marketing their services’. It had a great response, and one of the comments we received was how important social media is becoming in the aid of finding new contract work.

As a follow on to this, this post looks at how contractors can harness the power of social media in their quest to find a new contracting role.

Rise of the social channels

There are hundreds of social media channels, all with a different audience base. Not all of them will be suitable for finding contract work. It is better to focus your efforts on the ones that are likely to bring back results, these are; LinkedIn, Twitter, Facebook (maybe) and Youtube.

You don’t need a degree in marketing to be a social media star

You may need a degree to do what you do in your contract career, but you don’t need a degree in marketing to use social media.

Setting up the accounts is extremely easy, LinkedIn requires more information than others, but if you have gathered all the information before you start you can set up a LinkedIn profile in less than one hour.

Let’s look at each one in turn:

LinkedIn

LinkedIn is the largest business social media channel, and it is growing at an extraordinary rate.

If you are only going to set up one social media channel, it should be on LinkedIn. Here you will be able to connect with other contractors, recruiters and hiring managers in one place.

Instead of following an individual recruitment company connect with the agent that deals with your sector. Every time they post an update about a new role, this will appear in your feed.

Also, don’t be shy about promoting yourself on the site. Boast about your accomplishments, successes and add examples of projects you have worked on.

Twitter

Twitter is more than images of cats doing something silly or a picture of what somebody had for breakfast. It has a role to play as a business tool and it should not be ignored.

A top tip we came across is having a link to your LinkedIn profile in the Twitter bio section. You are limited to the number of characters you can use here, so create a shortened version using URL shortener like bitly.com, or goo.gl.

Tweet about your job search and include relevant hashtags. Hashtags will increase the audience size your tweet reaches and will help others find your tweet. A staggering 6,000 tweets are sent every second, so do whatever you can to make yours easy to find.

Follow related job boards and recruiters, and use a Twitter feed tool, like Careerarc for example. Here you can add details about the type of role you are looking for (be very specific, don’t put contractor, as you will end up with hundreds of tweets) and where you want to work (country, city). You can then choose to have roles send to your twitter feed or email.

Facebook

Facebook is tricky. It is mostly used for personal use, and most of us wouldn’t want clients seeing personal images and videos. So make sure your privacy settings are set correctly.

It is worth putting a post out saying that you are looking for a new contract and share it with your friends and family. You never know it might bring something up.

Youtube

Youtube is a bit like Twitter, in that people think of it as a ‘fun site to find quirky videos’. However, businesses are seeing the huge potential of Youtube. It is the second most used search engine behind Google.

There is a massive global audience that can be reached through Youtube and maybe it is worth thinking about using it to reach new clients.

You could think about creating a video of yourself which starts off with a short biography of yourself and then you can explain what type of contracts you are looking for. Keep the video short, around 1-2 minutes will suffice.

An important point to remember is that when you upload the video to Youtube, make sure the video is SEO optimised, so that it can be found by search engines.

Finally, add links to your video from your other social media profiles and email signature.

Closing thoughts

Social recruiting is on the rise and organisations, large and small are now employing specialist firms to help them to incorporate this into their recruitment strategy. Setting up a profile on these social media channels and regularly posting about your search for a new contract, successes you have had in your current contract and new skills or certificates you have gained might help you to find a new contract role.

IR35: It’s coming, if we like it or not

In approximately 10 weeks, new procedures come into effect, changing the way the IR35 status is determined for contractors who operate via their own PSC within the public sector.

The decision for determining if the contractor operates within or outside of IR35 will transfer from the contractor themselves to the public sector body they are engaged with.

What’s the reason for the change?

The government was embarrassed a few years ago when the press revealed that the Chief Executive of the Student Loan Company was being paid through his own limited company. As a result HMRC believe that as it stands, IR35 isn’t working in the public sector. Currently, a contractor’s IR35 status is decided by him or herself.. HMRC are not happy with this arrangement within the public sector and believe that some contractors are classifying themselves as working outside of IR35 in order to pay themselves a salary through their PSC without deducting PAYE. HMRC appear to be ignoring the fact contractors working through their own PSC are paying both Income Tax and Corporation Tax.

By forcing the public sector body to determine a contractor’s IR35 status, they are hoping they will be able to collect more tax revenue through PAYE and NIC.

Is it a welcome change?

Only HMRC see it as a positive step. It has come under fierce criticism from contractors, recruiters and professional bodies representing both contractors and the recruitment industry. Nevertheless, the concerns raised seem to have been pushed to one side and the changes come into effect in April 2017.

Who will it affect?

It will affect any contractor operating via their own PSC and who contracts for a public sector organisation. The term ‘public sector’ itself is extremely broad and includes for example; central government departments, local councils, parliament, NHS, MOD, Police, the BBC and Channel 4.

How will it work?

The public sector body will be held responsible for determining the IR35 status of any off-payroll person they engage with. To make it easier for the organisation to decide this status, HMRC are in the midst of developing an online tool that will help determine if the contractor is inside or outside of IR35.

Firstly, the tool is still being developed, with only 10 weeks left to go and this is a worrying situation. Secondly, the information that the tool gives out will only be as good as the information that is fed into it.

It becomes even more complicated if the contractor is engaged through a third party organisation, such as an agency. In this case, the public sector body is responsible for determining the status and informing the agency of their decision.

If the public sector body fails to do this the agency can write to them asking for their decision. The public sector body then has 31 days to give their response.

The agency’s role is that they are responsible for collecting the appropriate level of tax through PAYE and NIC.

Will it be a failure or a success?

No one knows if it will be a failure or a success, but many are putting money on it being the former.

Contractors who currently operate in the public sector are predicting that they will be forced to find contracts outside of the public sector, and some are already looking for new positions.

If you are a contractor in the public sector and are looking for advice on your tax situation, speak to our team on 020 8952 2234. 

Why people choose to go freelancing

Freelancing seems to be the ‘cool’ thing to do at the moment. Phrases such as the ‘gig economy’ and ‘start-up’ are often bounded around.

Traditionally freelancing was associated with web developers and graphic designers. But, now you will find that people from all industries and niches are going freelance. We attended a freelance networking event not so long ago and we met people who were Change / Program managers, Script Writers, Copywriters, Interior Designers, Business Coaches and even a Composer!

The question I asked all of them was, “what made you become a freelancer?”

Here are some of their reasons:

I do freelance work alongside my part time job. I can work the hours I want which fits in perfectly with having a young family and it is a way for me to earn some extra money“. Caroline, London.

I was made redundant from my position as an IT Manager and after 8 months of looking for a new position, I decided to set up my own freelance business. I now handle the IT requirements for small businesses who can’t afford to hire an in-house IT Manager“. Nick, Manchester.

I got tired of working long hours and building up the business for somebody else. I decided to put my energy into building a business for myself instead. That was 5 years ago and it was the best decision I ever made. I now get to work with clients who operate in different industries, every project is different and they all bring their own set of challenges. I am constantly learning new skills and this keeps me interested in what I am doing“. Claire, Cardiff.

Many of those we spoke said they had simply got tired of the corporate world and were looking for a refreshing change.

In fact, the profile of your average freelancer is changing. If you look back 7-8 years, freelancers were typically in their 20’s. Now, you find that the majority of freelancers are 30+, who have been employed and are now branching out on their own.

Is freelancing for everyone?

No! That may seem like a bold statement. But, the truth is, it isn’t! You won’t work 9-5, it can be lonely (you might spend a lot of your time working on your own), you don’t have colleagues around you to ask for advice, you will not have a fixed monthly salary and you have to say goodbye to paid holidays.

However, it is not all doom and gloom. We mentioned many of the positives earlier, and if you do feel lonely working on your own there are lots of shared workspaces popping up that don’t cost a fortune to use.

Is freelancing risky?

Not anymore. Long term job security doesn’t exist anymore. You could be working for a company for 15 years and then they go into administration and you lose your job.

When you launch your own freelance business, you hold responsibility for the business and it is down to you to make the business a success and profitable.

You are not alone

If you are thinking of going freelance there are lots of sites that can give you useful information, these include; Network Freelance, Freelancer News and Freelance UK.

Additionally, if you are new to freelancing and would like advice about the best way to set up your freelance business, give us a call on 020 8952 2234, and our team will discuss the best option for you.

Cloud Accountancy for Contractors: Do you find it mystifying?

Technology is evolving at a pace that we are finding hard to keep up with. Like it or not, technology now has a major impact on every part of life. Thankfully, the majority of the time it is a positive impact.

Cloud-based accountancy software has definitely made contractors life’s much easier.

For those who are unsure what cloud-based software is, it is another name for internet based software. Therefore it is accessible on differing devices (desktop, tablet, mobile) that has a connection to the internet.

Contractors and freelancers who use it say it has made understanding their businesses’ financial data much easier. What they like is, it;

“cuts back on the time they spend doing their accounts”

“is easy to use, even for technophobes”

“they can access it anytime, anywhere”

Cloud-based accountancy packages are ideal for busy contractors and freelancers as:

  • they require no software upgrades
  • it is accessible anytime, anywhere (as long as you have an internet connection)
  • the accountant has access to the same data as them
  • they can raise invoices through it
  • it can help estimate corporation tax
  • it can be used to keep track of dividends

Cloud accountancy and Making Tax Digital

By 2020, every business must report their tax information online, using a compatible accountancy software package. The first roll out starts in 2018, when sole traders and partnerships will be required to report their tax information online.

Cloud accountancy and accountants 

Cloud-based accountancy software has been described as a ‘virtual accountant’, but it should NOT signal the end of the relationship contractors and freelancers have with their accountant.

Cloud-based accountancy software packages can not provide you with strategic tax planning and advice. You cannot call upon ‘the cloud’ to help you with a question about VAT, for example. However, using the two in conjunction will make you a super-powered contractor or freelancer.

If you are looking to upgrade to a cloud-based accountancy package, speak to us today to find out the many benefits it can have to your business. Speak to us 020 8952 2234. 

Job search apps to look out for in 2017

Apps the way!

Now is a great time to be a contractor. And, the demand for skilled contract professionals is expected to continue to rise in 2017.

This has partially been fueled by the EU Referendum vote. Employers are not willing to risk taking on permanent employees and are instead opting to hire contractors and freelancers.

Recruitment agencies still continue to be a valuable source for contractors, with 80% of all contracts awarded through an agent.

However, times are changing and over the last year there has been a rise in the number of mobile apps and web platforms that are enabling employers and contractors to connect directly, cutting out the middleman (the recruitment agency).

This is not surprising as now 7 in 10 in the UK own a smartphone.  According to data from The Balance, 72% of all jobseekers search for and apply for roles using mobile phones.

Here are top 4 sites for contractors and freelancers to look at in 2017:

Fluxible

This app is specifically targeted at contractors who work in financial crime and compliance. It is scheduled to be launched in January 2017.

The app enables businesses and managed service companies to find and hire contractors directly.

Ryalto

Ryalto has been designed to connect organisations with skilled IT contractors and freelancers.

Contractors and freelancers create a profile detailing their area of expertise, daily rate, number of years’ experience and regions they are willing to work in.

Employers using the app have the ability to search through profiles to find available contractors and freelancers and message them directly.

http://www.ryaltoapp.com/

Elevate

Elevate is an online platform for contractors and freelancers working in all sectors and industries. It has been developed by a team of ex-recruiters to connect skilled professionals with contractors and freelancers.

To create a profile upload your CV and the system automatically extracts the relevant information and adds it to the appropriate section.

Notifications will be sent when the system finds a matching job. You choose to either apply or ignore it.

http://elevatedirect.com/

WiseCrowd

WiseCrowd is specifically aimed at freelancers who operate in the Governance, Risk and Compliance sector.

As with the other platforms, the freelancer creates an online profile listing their skills and details of previous projects they have worked on.

Using a calendar, employers can view details of freelancers who are available to work.

The platform is designed to speed up the hiring process and reduce the inefficiencies that can be experienced by using a third party.

http://wisecrowd.global/

Let’s make 2017 the year of the contractor and freelancer!

Why contractors need to be marketing their services

2017 is nearly upon us and a new year could also mean finding a new contract.

Investing some time and money into marketing could make finding your next lucrative contract a little easier.

If marketing is not amongst your key skillset, it can be confusing knowing where to start.

In this article, we run through some of the things you can do as a contractor to market your services.

What is the purpose of marketing?

The purpose of marketing is to inform clients (recruiters or direct clients) about your services and your expertise and persuade them to hire you to work on the contract.

Contractor marketing

Operating as a contractor means viewing yourself as a business. The service your business sells is your knowledge, experience and expertise.

You should, therefore, focus your marketing efforts on activities that will engage the audience you need to reach.

Your audience consists of recruiters and direct clients.

You should focus your marketing efforts on some or all of the following:

A contractor CV

Your most effective marketing tool is your CV. Typically a CV should be no longer than two A4 pages. However, as a contractor, this can be hard to stick to, as you may have worked on lots of different contracts.

If you are putting together your first contractor CV, or are think of updating it, you will find our article ‘Golden Nugget – CV advice for Contractors’ very useful.

Researching job boards and agencies

There are hundreds of job boards out there all stating they have the most clients and the best result rate. Don’t believe what you read. This is their marketing hype.

Spend some time researching job boards and agencies, and ask other contractors for recommendations.

When doing your research. consider the following:

  • how many vacancies they have advertised on their website
  • how frequently they update these vacancies
  • the quality of the writing. If they are happy to put something on their website that looks like it has been written by a 5 year old. It may be advisable to avoid them.

Social media

There has been an incredible rise in the number of social media channels that have come onto the market over the last couple of years. The biggest social media channels for contractors are; LinkedIn, Twitter and Facebook.

You may view Facebook and Twitter as methods to catch up with friends or search for news topics. However, more and more business are investing money into building a coherent social media presence.

Take for example recruitment agencies. Nearly every recruitment agency we have come across has a Facebook page and a Twitter account which they use to post their latest vacancies. If you connect your Facebook page or Twitter account to theirs, their posts will automatically appear in your timeline.

LinkedIn Profile

LinkedIn is the number 1 business networking site. It has an incredible 467 million members across 200 countries. Having a polished LinkedIn profile is a must for every contractor.

LinkedIn is the number tool for recruiters. If you don’t have a profile you are missing out on opportunities.

Our article ‘Do contractors need a LinkedIn profile’ explains why you should have a presence on LinkedIn and tips on how to create an exceptional profile.

Website

Developing a website is not as expensive as it was 10 years ago. You can build a professional looking site for around £500 these days.

Whilst it is not essential for you to have a website, it can be used as an opportunity to showcase your portfolio of work and also use it as a lead generation tool.

Adding content onto your website that clients will find interesting and educational you are giving them the opportunity to contact you directly instead of through an agent.

Summary

As the contractor market becomes more competitive it is vital that you consider other ways to differentiate yourself from other contractors on the market. Investing some of your time and money into some or all of the things we discussed above could increase your odds of finding new contract work, open up new avenues and increase your networking circle.

Changes to the VAT Flat Rate Scheme

Philip Hammond delivered what as some are seeing as another blow to contractors and consultants in the form of changes to the VAT Flat Rate Scheme.

In his first (and last!) Autumn Statement speech he announced that from 1st April 2017, a new 16.5% VAT flat rate will be introduced for businesses who have limited costs. These businesses have been termed a ‘limited cost trader’.

Are the changes necessary

Well, HMRC obviously think so. They state on their website that the changes are being introduced in order to tackle “aggressive abuse of the VAT Flat Rate Scheme”. These are very hard hitting words.

HMRC believe that some businesses are abusing the VAT Flat Rate Scheme and believe that the change will help to reign in this abuse.

How will the new 16.5% work?

The Flat Rate Scheme was introduced to simplify the process that businesses use to calculate the amount of VAT that they have to pay to HMRC. Our article Choosing the right VAT route explains in great detail how the Flat Rate Scheme works. It is worth having a read of it, if you are unfamiliar with the Flat Rate Scheme.

Businesses will now be required to determine if they are a ‘limited cost trader’ by completing a simple test. If their business, matches the criteria set out for a ‘limited cost trader’ they will have to use the 16.5%, instead of what they previously used as outlined in HMRC’s trade sector list.

What is a limited cost trader?

A limited cost trader is defined as one that spends less than 2% of its sales on goods (not services) in an accounting period.

When working out the amount spent on goods, it cannot include purchases of:

  • capital goods (such as new equipment used in a business)
  • food and drink (such as lunches for staff)
  • vehicles or parts for vehicles (unless running a vehicle hiring business)

A firm will also be a limited cost trader if it spends less than £1,000 a year, even if this is more than 2% of the firm’s turnover on goods.

This definition covers businesses that are labour intensive and includes contractors and consultants.

Don’t delay, start preparing today

The new rules come into force on 1st April 2017, but may affect invoices issued and goods bought, from now on. Further details are available in section 8.2 and 9.7 of the HMRC’s updated Flat Rate Scheme leaflet.

Further details of this change will be made available on 5th December when the draft secondary legislation will be published.

Even though these changes may reduce some of the benefits that the Flat Rate Scheme gives, we believe it will still be more cost effective for certain contractors and consultants to be on the scheme than not.

If you have any questions about how the changes will affect you, give our team a call on 020 8952 2234, who will be delighted to answer any of your questions.

 

Autumn Statement 2016

For weeks now, senior figures from the world of business have been at pains to point out just how important this year’s Autumn Statement will be.

The new Chancellor, Philip Hammond, stepped up to the despatch box to give his most significant speech since he took charge of the Treasury during the summer.

If his predecessor George Osborne, now watching from the backbenches, had come to be defined by his ongoing battle to balance the books in the wake of a financial crisis, the start of Mr Hammond’s tenure was always going to be overshadowed by one word. Brexit.

Businesses across the UK – and indeed overseas – were watching closely to see how the Government intends to steady the economy ahead of the UK beginning the formal process of leaving the European Union.

In his opening remarks, Mr Hammond laid out his stall.

“We will maintain our commitment to fiscal discipline, while recognising the need for investment to drive productivity,” he said.

 

Economic overview

The Chancellor will have been acutely aware, as he rose to address the Commons, that many headlines tomorrow would be dominated by the economic outlook and in particular the fall in growth forecasts.

He sought to extenuate the positives, pointing out that employment levels were at a record high, the deficit was falling as a share of GDP and that the economy had shown resilience in the wake of the summer’s referendum.

But he also acknowledged that the Brexit vote meant it was more imperative than ever to tackle any frailties in the nation’s finances, adding that the Government was committed to tackling these challenges head-on.

Growth is expected to be 2.4 per cent lower over the forecast period as a result of the uncertainty arising from the referendum result.

The Office for Budget Responsibility (OBR) has calculated that growth will be 2.1 per cent this year, falling to 1.4 per cent in 2017.

“That is lower than we would like, but still higher than many of our European neighbours,” said Mr Hammond.

Borrowing, meanwhile, will be 3.5 per cent this year, dropping to 0.7 per cent by 2021-22.

While acknowledging that the Government no longer expected to balance the books by the end of the decade, the Chancellor announced three new fiscal rules: to achieve a surplus in the next Parliament and reduce borrowing to two per cent by the end of this one, to get net debt falling by 2020 and to ensure welfare spending is kept within a cap set by the Government.

Business and Enterprise

The Chancellor was unequivocal that he wanted the UK to retain its reputation as a top destination for businesses.

He reiterated his predecessor’s commitment to reduce Corporation Tax to 17 per cent, although speculation that he may announce a further reduction (perhaps to 15 per cent) proved to be wide of the mark.

There was news of a two per cent reduction in the transitional relief cap, which will be overseen by the Communities Secretary, and Rural Rate Relief will increase to 100 per cent. This will be worth up to £2,900 for eligible firms.

Conversely, employers will have to make preparations for another increase in the National Living Wage next year. The statutory wage floor will increase from £7.20 an hour to £7.50 as of April 2017.

As part of efforts to make the UK a “world leader” in 5G broadband, ministers will also be offering 100 per cent business rates relief on new fibre infrastructure from April next year.
Finally, £400million will be pumped into venture capital funds, via the British Business Bank, to help unlock £1billion in finance for expanding businesses.

Transport and infrastructure

Mr Hammond said that the Government was committed to high-value investment in the nation’s infrastructure and that all of the UK would feel the benefit, acknowledging that too much onus had been placed on London in the past.

At the core of proposals are plans for a new national productivity investment fund, a £23billion pot which will be used to fund innovation and infrastructure.

There was also a commitment that investment in research and development will increase by £2billion annually by 2020, a £1billion digital infrastructure fund (with an emphasis on improved broadband) and the promise of a £1.1billion in additional spending on England’s transport network.

Property

As had been widely trailed before the speech, Mr Hammond confirmed that he would be banning fees charged by letting agents to tenants.

The move, which had actually been Labour policy at the last General Election, was designed to address the fact that fees were continuing to spiral upwards despite the efforts to regulate them. It had nonetheless attracted criticism in some quarters as another “assault” on landlords.

Mr Hammond admitted that a large section of the population continued to struggle to get a foot on the property ladder and said that the Government would shortly be publishing a new white paper to address some of the pressing issues relating to housing.

The Chancellor also confirmed plans for a £2.3billion Housing Infrastructure Fund, which will lay the ground for the construction of 100,000 new homes. In addition, there will be a £1.4billion investment to deliver 40,000 additional affordable homes.

As part of ongoing efforts to increase home ownership, there will be a “large-scale regional pilot” of Right to Buy for housing association tenants.

Personal tax

There was welcome news for many taxpayers in the form of an increase to the personal allowance. This will rise from its current level of £11,000 to £11,500 from April 2017. And Mr Hammond said that the Government remained committed to raising it still further (to £12,500) by the end of this Parliament.

Meanwhile, the 40p rate will increase to £50,000 over the course of the same period.

As regards National Insurance (NI), from next April the employee and employer thresholds will be aligned at £157 a week.

There was good news for the nation’s motorists, with the announcement that the Treasury would be cancelling the proposed rise in fuel duty for the seventh year running. On average this is calculated to save car drivers £130 a year and van drivers £350.

However, insurance premium tax will rise to 12 per cent (up from 10 per cent) which some have suggested is likely to wipe out any savings arising from the crackdown on fraudulent whiplash claims.

Tax savings relating to salary sacrifice and benefits in kind are also to come to an end, although exceptions will be made for pensions, childcare, cycling and ultra-low emission vehicles.

Pensions and savings

There were comparatively few announcements on pensions, although Mr Hammond did confirm that the Government would usher in a ban on pension cold-calling.

The Chancellor said that the Government was also committed to helping the nation’s savers and set out plans for a three-year investment bond, offering a 2.2 per cent interest rate on deposits of up to £3,000.

Tax evasion, avoidance and aggressive tax planning

Mr Hammond said the Government had a proud record of tackling tax avoidance and evasion and that the tax gap was one of the lowest in the world.

As part of the ongoing drive to ensure that businesses pay their fair share, he outlined plans for a new penalty for those who enable tax avoidance, which HMRC later challenges and defeats.

Overall it is calculated that the various anti-tax avoidance measures will raise in the region of £2billion over the forecast period.

End of the Autumn Statement

One of the biggest surprises was the news that this year’s Autumn Statement would be the last.

Next year will be the last time that the Budget takes place in the spring. After that it will be moved to the autumn, and while there will be a Spring Statement, this will be used principally to respond to OBR forecasts rather than as a platform for any major announcements.

Mr Hammond said that having just one financial announcement each year would bring the UK in line with the IMF’s best practice.

Summary

Ahead of today’s speech, the Chancellor seemed to play down the prospect of any dramatic new policy announcements, instead placing emphasis on a tax and spending plan which would prioritise prudence and stability.

Certainly, this wasn’t a delivery sprinkled with giveaways and perhaps the biggest surprise – given that the media had been briefed in advance about many of the headline announcements – was that Mr Hammond’s first Autumn Statement would also be his last.

The decision to condense all the major tax and spending plans into one annual summary is partly designed to give businesses greater stability and this may well be welcomed in the current climate.

Mr Hammond is unlikely to get away from the fact that uncertainty surrounding Britain’s departure from the EU is calculated to have created a £122billion black hole in the national finances.

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