Budget update

Here are a few points from George Osborne’s budget speech yesterday;

  • Minimum wage to increase in October to £6.70 for over 21s. Apprentice wage set to increase dramatically to £3.30.

  • Farmers will be able to average their profits over 5 years as opposed to the current 2.

  • Charities will be able to claim automatic gift aid up to £8,000 as opposed to the previous £5,000.

  • Small business rates relief has been extended.

  • Corporation tax for large companies will be reduced to 20%

  • The Tories are set to abolish national insurance for employee’s under 21 and will then look to apply this to young apprentices.

  • The annual investment allowance will be confirmed in August but the Chancellor does not plan to reduce it to as little as the £25,000 originally planned.

  • Class 2 has been abolished!!!!! Meaning the self employed will be £143 better off. This is set to help 5 million people.

  • The government will also be abolishing tax returns – I’m not sure how this is going to work in practice but we shall find out in a few years.

  • The chancellor is also cancelling the September fuel rise.

  • By 2017 the personal allowance will have risen to £11,000 which will help 27 million people!

  • The higher rate band will also increase by 2017 to £43,300.

  • The amount spouses can transfer to each other of unused personal allowance is also due to increase as part of the new married couple allowance.

  • The government has also introduced a new flexible ISA that means if you withdraw money in a tax year you can replace it.

  • The government has also introduced a help to buy ISA which will top up every £200 first time buyers save by £50. Meaning if they save £12,000 the government will top it up by £3,000.

  • There will be a new personal savings allowance. The first £1,000 of interest on savings will be tax free. This will be £500 if you’re a higher rate tax payer.

If anyone needs any further advice on the budget or would like to know how this affects them please contact Kayleigh on 07525 421 454.

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