What can we expect in the 2014 Budget?
Spring is finally on the way and that must mean that it’s nearly Budget time!
The Budget is the annual statement made by the Chancellor of the Exchequer, on behalf of the Government, to set out spending plans for the year ahead. It also announces details on any new tax rates and bands, along with changes to any existing taxes. Any increases (or decreases!) on duties are included too, on items such as beer, spirits, cigarettes and petrol.
The Chancellor will make his Budget speech on 19 March 2014, but there are a few things that we already know will be announced thanks to the Autumn Statement last year. Some of these will no doubt be of interest to our readers.
- The normal tax code limit will increase to £10,000, for those under 65.
- The basic rate band decreases from £32,010 to £31,865.
- The new Employers Allowance will be available, allowing small employers to save up to £2,000 a year in Employer’s National Insurance.
- The benefit in kind limit on a beneficial loan increases from £5,000 to £10,000.
- Beneficial loan interest in decreasing for the first time in 4 years, from 4% to 3.25%.
- The annual pension limit decreases from £50,000 to £40,000, and the lifetime limit decreases from £1.5million to £1.25million.
- The ISA allowance for the year increases from £11,520 to £11,880, of which half can be cash.
- The junior ISA limit increases from £3,720 to £3,840.
- If you own a property that you’ve rented and are intending to sell the last 18 months will be an exempt period for Capital Gains Tax purposes – this was previously 36 months.
- The recovery of Statutory Sick Pay (SSP) is abolished.
We are also expecting final legislation covering offshore intermediaries and possibly the introduction of onshore intermediaries’ legislation covering specifically agency workers. There could also be personal service company announcements connected with the House of Lords committee hearings on IR35. So this could be an interesting Budget.
Intouch will be issuing a full budget summary to our clients shortly after the speech, along with an analysis of how it may affect you.
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.