The latest chancellor’s budget has been seen as one of the most divisive in recent history. The first Tory-only cabinet in 19 years has provided promises of investment and tax reliefs that are a boon for many. However cuts in welfare and reduced funding of certain sectors may yet prove to be detrimental to others.
Now that the dust has settled we can ask:
What does the budget mean for you?
We have identified several key points that we believe will affect you, our clients, most significantly:
- The introduction of a national living wage to replace the national minimum wage. The first rise to £7.20 per hour will take effect from next April with the rate rising to £9.00 per hour by 2020 for all those over the age of 25.
- An increase in the inheritance tax threshold for married couples to £1 million by 2017
- Tax credits (Working and Child) are to be frozen for 4 years.
- Corporation tax is to be cut to 18% by 2020.
- Fuel duty has been frozen for the rest of the year – meaning no rises in tax on petrol or diesel.
- A rise in the tax on car insurance premiums.
- A new road tax band for all cars, with a standard charge of £140 per year to be introduced.
- Pension’s tax annual allowance is to be tapered to a minimum of £10,000 from next year.
- Personal earnings allowances are to be raised to £11,000.
- And many more!
- Obviously this is a lot to get your head around – especially when already dealing with the day-to-day demands and stress of running a business. But we are here to help.For expert advice from a friendly and approachable team of professional tax consultants and accountants, Contact Us or drop in to our new offices on Howe Street. We will help you make sense of the changes and give you the advice you need to keep your personal and business finances on track and ahead of any changes to come.