The Budget 2014 – Summary

The Budget 2014

After years of austerity and fairly bland budgets, was it finally time for a budget to make everyone sit up and listen? With 14 months to the general election then this budget was going to be one to look out for. But what did it deliver?

The Budget Overview

Being an economist in interest only, the best way forward to summarise the budget seemed to be that we would take everyone else budget summaries, then bullet point them.

For this we need to say a thank you to Alan Chesterfield of TaxAssist, Nigel Taylor of NJT Accountancy.

The Main Points – Budget 2014

OK, here we go;

  • Income Tax, the tax free personal allowance has been increased to £10,500 from April 2015. So no tax on the first £10,500 earned
  • The 40% threshold will rise to £41,865 in April 2014 and a further 1% to £42,285 in April 2015
  • ISA’s, tax free investment of £15,000 – Stocks and Cash ISA’s to be merged into one. No more separate investment limits and the ceiling has gone up 
  • Beer Duty, a cut of 1p off a pint. It is not all bad

Like an economist once told me, budgets are like your Mother-in-Law driving off a cliff in your brand new car. Every positive thing comes at a price.

With this in mind, some things you may have been hoping for have not happened;

  • Corporation tax rates for profits under £300k remain the same, no cut unfortunately
  • No review of business rates despite some intense lobbying from various business groups

Elsewhere in Budget 2014

There are a few other bits you may want to know about, there are changes to childcare allowances, a new £1 coin and an increase in minimum wage.

The one that grabbed my interest was the potential for a portable bank account. Think of it as similar to your mobile phone number in that you get your pac code and can take the number anywhere. Sounds like an idea so watch out for more.

If you want the full breakdown from The Budget 2014 then download these guides from TaxAssist or NJT.

Any questions or comments about this post then please add them below, or contact Lime Consultancy here.

By Dave Farmer

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Contains public sector information licensed under the Open Government Licence v3.0.

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