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Below is a summary of the key business related point from the latest budget.

 

Business taxes

  • Diverted profits tax (aka Google tax) – will go ahead from April this year
  • Oil & gas – the supplementary charge will be cut to 20%; a new single and simple field allowance will be introduced to boost investment
  • Bank levy to rise to 0.21% and no deductions for compensation payments to customers
  • Business rates review – radical changes to be considered (eg base charge on turnover of business rather than property rateable value)
  • Increasing film & TV tax reliefs and introducing an orchestra tax relief

Anti-avoidance

  • The common reporting standard (worldwide reporting of bank etc data to other tax authorities) to be legislated
  • Tightening entrepreneurs’ relief rules for joint venture companies and for associated disposals (to ensure that relief is only given on sales of genuine business assets, and significant disposals)
  • Agency workers – a clampdown on travel & subsistence payments

Employment taxes

  • Confirmation that there will be no employer’s national insurance contributions for under 21 year olds (when paid less than £815 per week) from April 2015 and a similar relief for apprentices under 25 from April 2016
  • 20% increase in minimum wage for apprentices to £3.30 an hour, main rate: a 3% increase to £6.70 an hour - both from October 2015

Income tax

  • New online tax accounts for individuals starting for some in 2016 – no need to do a paper income tax return (just check and update your online data and pay in instalments if you want)
  • Personal allowance to be increased to £10,800 in 2016/17, £11,000 in 2017/18
  • Basic rate band to be increased to £31,900 in 2016/17, £32,000 in 2017/18
  • Pensions lifetime allowance cut to £1m from April 2016
  • More flexibilities for ISAs (taking out & put back in the same year without affecting the annual limit)
  • Help-to-buy ISA: the Government will contribute an additional 25% to the amount saved by first time buyers towards a home deposit. The maximum is a £3,000 contribution added to £12,000 individual savings
  • Personal savings allowance (worth a maximum of £200) introduced from 2016/17

Capital gains tax

  • CGT on non-UK residents selling UK residential property after 6 April 2015 – confirmed

Inheritance tax

  • A consultation document on the use of deeds of variation to avoid IHT will be released later in 2015 VAT
  • No rate changes
  • Anti-avoidance around use of offshore branches

VAT

  • No rate changes
  • Anti-avoidance around use of offshore branches

Thanks to our member, Clive Myers, of Myers & Co, for pulling this together for us