Topical Tax Points

The reason behind this page is to bring to you a few tax points that have come to the fore recently – needless to say we can’t mention them all as they are far too numerous to mention (we do after all, have the most complex tax code in the world).

Pensions

As you will have heard, either directly from the chancellor in his budget speech, or via news bulletins of one sort or another, from April 2015 under government plans you will have the option to choose how you use the pension pot you have built up over the years. This is represents a huge change over the past when you had to buy an annuity whether or not this was your wish.

Employment

RTI (Real Time Information) is now with us causing headaches for many employers and HMRC (no doubt) alike. This is something we are quite heavily involved in ourselves at present. We believe that most employers will need help with this – if you need such assistance, please feel free to call us.

Please remember that from April 2014 all businesses will be entitled to deduct up to £2,000 from their employer NIC liability for the year. This will be dealt with through the normal payroll under RTI.

Corporation Tax

Whilst the small companies rate of corporation tax remains at 20%, the main rate is reducing to 21% from 1 April 2014 and then to 20% from 1 April 2015 which will align the main rate with the small companies rate.

Capital Allowances

The Chancellor has announcedthat the Annual Investment Allowance will increase to £500,000 for the period commencing 1st April 2014. It has been indicated that this relief will remain at this level until 31st December 2015. There are transitional rules for businesses with year ends that span either of these dates.

VAT

The threshold for compulsory registration increases from £79,000 to £81,000 from 1 April 2014.

Personal Allowance

The personal allowance has been raised to £10,000 for the year beginning 6th April 2014. This will then increase again in the following year to £10,500.

The above just lists out a few of the changes being brought about by the budget for 2013.  Needless to say there are numerous others and we would be happy to advise on any aspect that you may wish to have clarified.

(C) 2010 - 2015 G M Richards & Co, Accountants and Chartered Tax Advisers, Bath, Somerset

To contact us click here