The Chancellor delivered his Autumn Statement on Thursday 5 December. Whilst the headlines may have concerned the increase in the state pension age, the following are the main areas which are relevant to small businesses and taxation:
Small Business Rates Relief
The 100% relief for small business rates was due to finish in April 2014, but has now been extended to April 2015. Any rise in business rates will be capped at 2%, whilst also offering small retailers a £1,000 discount on business rates for the next two years.
The basic personal allowance for 2014/15 will be increased to £10,000 (2013/14: £9,440). The higher rate threshold (HRT – the sum of the personal allowance and the basic rate limit) will be £41,865 for 2014/15.
Also, from April 2015, it will be possible for spouses/civil partners to transfer £1,000 of their personal allowance to their spouse/civil partner, provided that the recipient is not liable to higher rate tax. At a basic rate of tax of 20%, the benefit would therefore be £200.
Employer’s National Insurance
Employer’s National Insurance will be abolished from April 2015 in respect of those aged under 21. However, this will be restricted to those earning less than £831 p/w.