With none of the politics and huff that goes along with a budget just before a major election. The media maybe filled with information about the colour of the chancellor's tie and the opposition's facial expressions.
So at Tax Affinity Accountants we know and understand that businesswomen and men simply just want to just know what the effect will be on their business. That's why we have compiled a simple at a glance list to help you.
1. The Income tax personal allowance will be raised to £10,800 starting from 6th April 2015 (from £10,600) and to £11,000 the following year.
2. The higher rate of tax threshold is also raised to £43,300.
3. Plans to abolish annual tax return and move to a more automated digital accounts system.
4. Plans to abolish Class 2 national insurance contributions for the self employed in next Parliament.
5. Growth of the economy forecast to be up to 2.5% this year. Then 2.3% next year before reaching 2.4% in 2019.
6. Inflation is forecast to be at 0.2% for this year and the same for the next three years.
7. Fuel duty to remain the same as before as September's planned increase is cancelled.
8. Plans to sell get money back when banks were bailed out. £13bn of mortgage loans still owned by the government from Northern Rock and Bradford & Bingley will be sold. Plus £9bn of Lloyds Banking Group shares to be sold this year.
9. Alcohol duty changes see 1p off a pint of beer and a 2% cut in cider and whiskey duty. While wine duty is to same as before.
10. Changes in ISA's. Total annual savings limit for ISAs has been increased to £15,240. With some types of ISA which will allow savers to draw money and put it back in the same year without losing any part of their tax free allowance. And a new help to buy ISA for first-time buyers will allow government to top up by £50 every £200 saved for a deposit. (speak to your bank for more details).
11. Changes so that pensioners will now be able to trade in their annuities for cash, with the 55% tax abolished and tax being applied at a marginal rate.
12. Plans to review inheritance tax avoidance through "deeds of variation".
13. A new personal saving allowance where the first £1,000 interest on savings income will be tax free for 20% basic rate taxpayers and £500 for higher 40% tax rate payers.
14. New tax on diverted profit to come into effect next month. This is aimed at companies moving profits artificially off shore.
15. There are plans to review of business rates to help businesses.
16. And for charitable donations the gift aid limit for charities to be extended up to £8,000.
By Omar Tahir Khan at Tax Affinity Accountants.
Tax Affinity Accountants are experts in Tax and Accountancy. Based in Kingston upon Thames they provide a bespoke service to clients right across the UK and are considered in the industry to be experts in business advice. They mentor and support members of the public to make their businesses grow and reach their full potential.
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