2013 Budget – In short

March 21st, 2013  |  Published in Latest News

Beer down a penny a pint – drink for England, with every 300 pints you get one free. Oh chancellor you’re spoiling us!
Spirits and wine are up, though, funny how the papers don’t mention that.

Business taxation summary
Employment allowance: £2,000 NIC break unveiled for 2014-15 – Don’t start applying it yet!

Employee shareholder status: shares for rights

Corporation tax moves towards single 20% rate in 2015

VAT threshold rises to £79,000
from 1 April 2013:
The registration threshold goes up from £77,000 to £79,000
The de-registration threshold goes up from £75,000 to £77,000

A new table of VAT fuel scale charges has been published and will apply to VAT accounting periods beginning on or after 1 May 2013

Capital gains tax relief for SEIS shares

Stamp duty exemption for growth market shares

R&D tax relief

Company cars – new low emission bands

Anti-avoidance: Clampdown on tax scams could affect LLPs

Personal tax summary

£10,000 personal allowances for 2014-15

New childcare scheme from Autumn 2015: 20% support worth on child care costs up to £6,000 per year per child

Exemption threshold for employer provided beneficial loans (ie to buy rail season tickets etc)

Consultation due this year on collecting tax debt through the PAYE coding system

CGT relief extended for reinvesting gains in SEIS shares

Consultation: Could Class 2 NICs move to self assessment?

The government will hold a consultation on using self assessment to collect class 2 NICs, alongside income tax and class 4 NICs, with plans for legislative changes to follow. This would mean that instead of weekly class two NIC payments, the self employed would pay the contributions yearly following their self assessment returns.

Most self employed people pay two different classes of national insurance. Class four is amalgamated with self assessment and dependent on profits, while class two is a flat rate weekly amount.

It seems reasonable, however at the moment at least the cost of Class 2 NIC is spread over the year. With the Self Employed benefiting from the proposed flat rate pension, don’t be surprised if our NIC contributions go up substantially!

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