The highlights of the 2014 budget….
Author: Russell SmithMarch 21, 2014
Another budget – what fun!
Actually, it wasn’t that exciting which was a bit disappointing. We may be in the interesting situation of the Autumn statement having more va va voom than this budget (because of the election cycle).
So for your entertainment, here are the highlights…..
1. The personal allowance (0% tax band) will be £10,000 from 6 April 2014 and £10,500 6 April 2015. Essentially, this means that a limited company director will be able to take out more from the company in salary (no income tax and a £2,000 saving on corporation tax).
2. The higher rate tax bracket (what I call the ‘danger zone’) is increasing from £41,450 to £41,865 (not much!) and then £42,285 the year after. Result: hundreds of thousands of business owners caught into the higher rate trap, tax planning essential.
3. Cash and shares isas to be merged into a single new isa with annual tax-free savings of £15,000 from 1 July (I like this one)
4. Business rates discounts and enhanced capital allowances in enterprise zones extended for 3 years (very good if you are looking into investing in business in the enterprise zones).
None of which is as exciting as last year’s announcement of a £2,000 cut in Employers National Insurance (if you don’t know about this – make sure you claim it through your payroll, it starts on 6 April 2014).