Budget – Key points
12th April 2013
The big news in the budget was the announcement of an Employment allowance giving employers a National Insurance saving of £2,000. The exact details of this allowance are still to be released but here are the basic outlines from the Treasury’s website:
If you qualify (no details yet of who qualifies) you will have £2,000 deducted from your Employers National Insurance bill over the process of the tax year 2014/15. This means every business will be able to employ one worker on a salary of £22,400, or four employees working full time on the adult National Minimum Wage, without paying any employer NICs at all. Be aware though that the information released by the Treasury seems to suggest this will only apply to new members of staff.
Other interesting announcements for small business owners are:
- the tax free personal allowance is going up to £10,000 from April 2014.
- If you are a larger company you’ll also be glad to hear that the main rate of corporation tax is going down to 20% in April 2015 (unfortunately no change to the small company rate!).
- “Shares for rights” scheme allows employees to forfeit key employment rights for tax exempt shares in the company.
- There has been a lot of press recently about auto enrolment for pensions but small business owners with less than 50 employees should bear in mind the earliest date this could affect them is June 2015 which is over 2 years away.
If you had any questions on how the budget will affect your business or on any of the changes mentioned above please feel free to contact Gail or Carol on 01273 737307 or e-mail us at email@example.com.