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UK tax implications of working abroadInflation at its highest since 2012
Inflation is at its highest rate since 2012, due to a rise in food and transport prices. The Consumer Prices Index (CPI) measure of inflation increased to 3% in September 2017, up from 2.9% in August.
The September inflation figures are significant as they are used to set some rates for the next tax year.
The state pension
The 3% rise in CPI means the state pension will increase in line with inflation in April 2018. Under the ‘triple lock’ guarantee the state pension rises by the higher of inflation, average wage increases or 2.5%.
Business rates
The Retail Prices Index, which is used to determine the increase in business rates from April 2018, rose by 3.9%.
Helen Dickinson OBE, chief executive of the British Retail Consortium, said:
The consequences of today’s RPI figures could be severe for many shops in a precarious position and struggling to survive. The hefty near 4% rise in business rates is set to add an extra quarter of a billion pounds to retailers’ already unreasonable business rates burden. For many shops this may be the last straw.
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