Budget 2013 – Keypoints

Budget 2013 – Keypoints

The Chancellor delivered his budget earlier this week (20 March 2013) and we have summarised the main points which we feel are relevant for our clients: –

Personal Allowance – The planned increase in the personal allowance has been brought forward to take effect from April 2014. The basic rate threshold was reduced for £31,865 from 2014 which will mean that more people will pay tax at 40%

Childcare vouchers – Working parents will be able to claim up to £1,200 per year in childcare cost for children under 5 years old (from 2015). The system will work in a top-up method where for every 80p parents pay, the government will add 80p. This will replace the existing employer childcare voucher scheme.

Company car tax – Rates for ultra-low emission cars were announced: –

Cars emitting 0-50g of CO2 per Km – 5% (2015/16) – 7% (2016/17)
Cars emitting 51-75g of SO2 per Km – 9% (2015/16) – 11% (2016/17)

The 100% first year allowance for expenditure on cars with low CO2 emissions has been extended to 31 march 2018.

National Insurance – A £2,000 annual allowance for all businesses and charities has been announced although we don’t have any further details at this time.

VAT – The registration threshold has been increased from £77,000 to £79,000 from 1 April 2013 with the de-registration threshold being increased from £75,000 to £77,000 from the same date.

This is just a broad outline of a few of the matters in the budget. If you want more information on the above points or want to go through other points from the Chancellor’s budget, get in touch with Harrisons Accountancy (Biggleswade, Bedfordshire)

All information shows in believed to be correct but we ask that you do not rely on the information shown without checking this to other sources.

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