The Chancellor has just delivered his latest budget. The news was delivered in the context…
This year’s budget was described as one for an “aspiration nation” and he wanted to declare that the country was “Open for Business”.
The top talking points as small business owners are:
- The main rate of corporation tax will reduce to 20% from 1st April 2014. This brings it in line with the small business rate. Great news if your profits are greater than £300,000, no news at all if they aren’t!!
- The biggest break is the announcement of a £2,000 reduction in “job tax” from April 2014. This essentially means that small businesses will be able to employ one person at £22,000 or 4 at minimum wage before they’ll have to pay any employers NIC. If you employ someone, or are thinking about it, this is great news!!
- The personal tax allowance will be increased to £9,440 from 6th April and up to £10,000 from 6th April next year. There’s no announcement as yet on what the changes to the NIC rates will be, so we don’t know just how much good news this is as yet (we’ll let you know when we do)
- The introduction of a new childcare scheme, to be phased in from Autumn 2015. The first £6,000 of childcare will be tax free, saving £1,200. However, it will replace the current voucher/ salary sacrifice scheme. There will shortly be Government consultation of exactly how it’ll be implemented.
An increase in the threshold of employment related loans from £5,000 to £10,000 from April 2014. As long as the loan balance doesn’t increase over £10,000, there’ll be no tax charge on the loan
Other areas of interest were:
- The introduction of a “help to buy” scheme for people wanting to move up the housing ladder. As long as the house purchase is less than £600,000 (which covers 90% of houses) and you qualify under normal affordability criteria, the government will loan up to 20% of the value of a new home and a mortgage guarantee on your mortgage.
- Fuel duty increase planned for later this year has been scrapped.
- Beer duty cut by 1p from Sunday.
As we get more detail on how these changes impact you, we’ll let you know
We’d love to know what you think……..
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