Is there any good news among the doom and gloom? Well, yes there are few measures to help reduce tax bills:
– a new employment allowance from 2014 will give all employers a reduction of £2000 on their NI bill, excellent news for current and new employers!
– as previously announced the personal allowance has increased from £8105 to £9440, and increase of nearly 16.5%, but it has also been announced that this will increase further to £10,000 from 2014 taking many out of the tax bracket. However, the increase does not apply for NI which remains payable on earnings over £148 per week.
– do you have elderly parents or grandparents? Tthey may be affected by the freezing of the age allowance available to people born before 6th April 1948. This will remain at £10,500 (or £10,660 if born before 6th April 1938), until it aligns with the normal personal allowance.
– a new scheme of childcare arrangements will come in from 2015 with up to £1200 in childcare vouchers being available. This will replace the existing childcare voucher scheme. Details are still being published.
– the turnover limit for registration for VAT goes up from £77,000 to £79,000.
– the main rate of Corporation Tax has been reduced to 20%. This was previously only available to small companies, so brings all companies into line on the same rate for the first time from 2015.
– the amount that can be loaned at a beneficial rate to an employee without being reported on a P11D has increased from £5000 to £10000.
– If you have a limited company and are considering changing your car, and thinking of going green, take extra care as this may not be as beneficial as you think. The taxable benefit percentages for company cars have changed and you should research the tax (and environmental) effects in detail before making a decision and to avoid a potential tax trap.
For more details, view the HMRC website or contact your accountant.
Director – Rightway Accounting Services Ltd
Tel: 07752 292742