The 10% starting rate will apply to the first £2,880 of savings income for 2014/15, however this rate will be abolished and replaced with a zero rate on the first £5,000 of savings income from 2015/16 onwards.
There are significant changes being proposed which will make it easier to access your pension fund pot if you have a defined contribution (money purchase) pension scheme. As a general rule 25% of the pension fund can be taken as a tax free lump sum at age 55, although this age will be increased in […]
As previously stated on this blog, capital gains tax reliefs were always planned to be introduced in Budget 2014. The capital gains tax annual exempt amount will increase to £11,000 for 2014/15 and £11,100 for 2015/16. With a top rate of 28% this allowance potentially saves just over £3,000 a year, or £6,000 for a […]
In order to encourage savers, the current £11,520 ISA limit is to be significantly increased to £15,000. This will come into effect from 1 July 2014. Furthermore the current 50% cash ISA limit of £5,760 is to be abolished so that any combination of cash and stocks and shares can be held within the ISA […]
Personal allowances remain fixed for 2014/15 at £10,000, the much promised level included in the Coalition Agreement. However the Budget also announced that there will be a further above inflation increase to £10,500 for 2015/16 in line with the allowance currently available to taxpayers aged 65 to 74. Those aged 75 and over will continue […]
1 May – Corporation tax for year to 31 July 2013. 19 May – PAYE & NIC deductions, and CIS return and tax, for month to 5 May 2014 (due 22 May if you pay electronically).
The 20% basic rate band is set at £31,865 for 2014/15 and will fall to £31,785 for 2015/16. This means that you will pay 40% tax if your taxable income exceeds £41,865 for 2014/15 and £42,285 for 2015/16. The 45% top rate continues to apply to taxable income over £150,000 for 2014/15.
The current £5,000 limit for cheap or interest free loans to directors and employees increases to £10,000 from 6 April 2014. This means that such loans will not need to be reported on P11D forms and there will be no income tax or national insurance liability on loans up to the new limit. However, there […]
The Government intends to simplify the administrative process for the self-employed by using Self Assessment to collect Class 2 NICs alongside income tax and Class 4 NICs. HMRC have stated “These changes will have effect from April 2016, however customers will start to see the benefits after April 2015”. Watch this space…
Annual Investment Allowance (AIA) – The Government will increase the current maximum of the AIA from £250,000 to £500,000. These changes will have effect: from 1 April 2014 to 31 December 2015 for companies from 6 April 2014 to 31 December 2015 for sole traders and partnerships