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.