- Limit at which people start paying tax to be raised to £10,600 from 6th April 2015 (Revealed in 2014 Budget)
- Limit at which people start paying tax to be raised to £10,800 from 6th April 2016 and £11,000 from 6th April 2017
- Higher rate tax threshold increased (first time this parliament) from £41,865 to £42,385 from 6th April 2015
- Higher rate tax threshold increased from £42,385 to £42,700 from 6th April 2016
- Annual Paper Personal Tax Returns to be abolished in favour of Digital Tax Accounts.
TBOS COMMENT – With the personal allowance increasing it means more lower paid workers will not be taxed and should mean more money in your pocket each month. The £600 increase in the basic rate threshold will mean taxpayers will get £120 in their pocket assuming there is no change in their wages. Higher earners also will see the benefit due to the increase in the higher rate threshold.
HELP FOR BUSINESS
- Corporation tax to be cut by 1% to 20% from 6th April 2015 (Revealed in 2013 Budget)
- Tax on “diverted profits” to come into effect next month, aimed at multinational firms moving profits “artificially offshore”
- Review of Business Rates
TBOS COMMENT – There was nothing major in the budget where he gave any additional help for businesses which may be due to the forthcoming election
- Eight new enterprise zones across Britain – including Blackpool and Plymouth
TBOS COMMENT – With the news that unemployment had dropped by 102,000 before the budget was announced is a welcome sign that the job market is improving and these extra measures can only be good for the industry.
TRANSPORT AND INFRASTRUCTURE
- South West to receive £7bn in transport investment for new rail franchise
- Severn Bridge Toll to be reduced from 2018
TBOS COMMENT – Good news for the rail, construction and engineering industry and may open up further opportunities for recruiters.
ENERGY AND THE ENVIRONMENT
- North Sea oil industry to receive £1.3bn in support through four new measures
- Plans for a £1bn tidal lagoon off the coast of South Wales to produce renewable energy using turbine technology
TBOS COMMENT –The investment in the renewable energy and Oil & Gas industry means there may be recruitment opportunities for recruiters.
- New investment in transport and regeneration across London, and funding to address acute housing shortages in the capital
- “Help to buy ISA” will be launched for first-time buyers. For every £200 saved for a deposit, the government will top it up with £50 (up to a maximum bonus of £3,000).
TBOS COMMENT – On the back of the Help to Buy scheme launched 2 years ago this is added incentive is good for first-time buyers. The support for new housing is good news for the construction industry and may mean recruitment opportunities are available for recruiters
FUEL AND ALCOHOL
- September’s fuel duty rise scrapped and freeze on fuel VAT will continue
- Beer duty to be cut by 1p per pint for 3rd year running
- Cider, Scotch whisky and other spirits to be cut by 2%
- Wine duty to be frozen
TBOS COMMENT – Although this sounds like good news for motorists it doesn’t mean that petrol prices will not increase only that the tax will not rise. It is also good news for drinkers.