The Budget – Autumn Statement

 

The Budget – Autumn Statement

First things first, the Autumn statement is being made in December. Not really Autumn then… Which pretty much sums things up, not quite what they seem and a little confusing. So another budget which takes some thinking about.

We are grateful to Menzies Chartered Accountants for their Budget commentary, a full copy can be downloaded here – autumn_statement_summary (1) but in the meantime, let us give you a few highlights.

Personal Tax

For those born after 5 April 1948 the personal allowance will rise to £10,000. It was £9,440 previously and £6,475 when the current Government came into power in 2010. Good news for the majority of employees and a statement that work pays is beginning to feed through.

2014/15 Tax Bands

Basic rate of tax is currently 20%. Income taxed at this rate is being reduced from £32,010 to £31,865. The 40% band applies from £41,865, it was £41,450.

The additional rate of tax of 45% is payable on taxable income above £150,000. Dividend income is taxed at 10% where it falls within the basic rate band and at 32.5% during the higher rate tax band and at 37.5% where income is over £150,000.

National Insurance

April 2015 will see the Government abolish employer NIC for those under age 21. This exemption will not apply to those earning more than £42,285 for 2015/16. Employer NIC will be liable as normal beyond this limit.

Another little encouragement for firms to take on staff straight out of further education.

Small Businesses

Loads of bits and pieces here, in a very brief summary;

  • Rates incentives for business to take on vacant premises
  • Small Business Rates Relief has been extended for another year
  • Business rates to be payable in 12 rather than 10 installments
  • 2014 consultation to look at tax relief for theatres and touring productions
  • Company Car and Company Van taxation has changed. Not explaining here as you need to download the summary – autumn_statement_summary (1)

What Do We Think Of The Budget – Autumn Statement?

This is opinion only…Got that? The budget is more upbeat than previous budgets, not surprising given that we could be 14/15 months away from a general election. We are seeing a move toward support for SMEs which has to be a good thing.

All in all, it makes the full budget next year one to watch. There are suggestions that the purse strings could be loosened a little, so let’s watch this space….

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