Autumn Statement 2013

Published on: 06/12/2013

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.

Personal Allowances

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.

Please note: posts were written at a specific time and reflect the rules in place at that time, which may no longer be relevant. Furthermore, the posts are generic in nature. We cannot accept any responsibility for any losses in respect of actions taken on the strength of this generic advice. We would advise you to seek up to date advice which is relevant to your circumstances.
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