The Chancellor of the Exchequer, George Osborne, announced his budget on 20th March 2013. Below is a list of the key changes and how they may affect you personally and your business. Tax Changes…
The personal allowance for people aged under 65 will increase to £10,000 in April 2014. This is the amount of income you can receive without paying tax on it.
The basic rate limit will fall by £145, taking it from £32,010 in 2013-14 to £31,855 in 2014-15.
A new tax-free childcare scheme will provide working families with 20% of their childcare costs up to £1,200 per child. The scheme will begin in the autumn of 2015 for children under five.
The inheritance tax nil-rate band of £325,000 will be frozen for a further three years from 2015-16 to 2017-18.
From April 2014 all businesses will be entitled to a £2,000 employment allowance deducted from their Employer’s Class 1 NIC liability.
The main rate of Corporation Tax will fall from 24% to 23% in April 2013, and to 21% in April 2014. By 2015 the main rate and small profits rate of Corporation Tax will be unified at 20%.
From 1 April 2013 the VAT registration threshold will rise from £77,000 to £79,000; the deregistration threshold will increase from £75,000 to £77,000.
The lifetime allowance for pensions will reduce from £1.5 million to £1.25 million for 2014-15 and subsequent years. The annual allowance for pension contributions will also reduce from £50,000 to £40,000 for 2014-15 and subsequent years.
The ISA limit for 2013/14 has increased to £11,520 of which £5,760 is the cash element.
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