The Chancellor announced his 2013 Budget on 20 March 2013. The following are some of the major announcements which are relevant to the self employed and small business:
The personal allowance threshold is due to increase to £9,440 from 6 April 2013 and then to £10,000 from April 2014.
The 40% tax rate is reached in the 2013-14 tax year when income is £41,450 and will be £41,865 for 2014-15.
The top tax rate of 50%, payable on income in excess of £150,000, is to be cut to 45% from April 2013.
Employment Allowance – from 6 April 2014 every business and charity that is registered for PAYE will be entitled to a discount of £2,000 against their employer’s NIC liability for a tax year. Where the liability buy cialis online no prescription would have been less than £2,000 there will be no employer’s NIC payable for that year.
The main rate of corporation tax, which applies to profits in excess of £300,000, is currently 24%. It will reduce from next month to 23%, and will fall to 21% in 2014 and to 20% in 2015.
Also, the Government are tightening up on the operation of loans to participators, in relation to intermediaries, non money advances and ‘bed and breakfasting’.
The threshold for the Annual Investment Allowance (AIA) has been kept at £250,000 until 31 December 2014, when it is due to revert to £25,000.
The VAT registration threshold will increase to £79,000.