The Chancellor of the Exchequer, George Osborne, announced his budget on 22nd March 2012. Below is a list of the key changes and how they may affect you personally and your business.

Tax Changes…

o – Income Tax

o – The personal allowance for people aged under 65 will increase by £1,100 to £9,205 in April 2013. This is the amount of income you can receive without paying tax on it

o – Age related allowances will be frozen from April 2013

o – The top rate of income tax will fall from 50% to 45% in April 2013. This will affect individual’s earning over £150,000.

o – Corporation Tax

o – The main rate of Corporation Tax will be reduced by an additional 1% to 24% from April 2012.

o – Vat Registration

o – The VAT registration increases by £4,000 from £73,000 to £77,000 as of April 2012. The VAT deregistration threshold also increases at the same time by £4,000 from £71,000 to £75,000.

Child Benefit…

Child Benefit will be withdrawn when someone in a household has an income of more than £50,000. The benefit will be withdrawn gradually; for every extra £100 earned over £50,000, the child benefit will be reduced by 1%. Only those with an income of more than £60,000 will lose all their Child Benefit.