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budget
Budget 20 March 2013
On Wednesday 20 March 2013, Chancellor George Osborne, will deliver the Budget Statement in private to the Cabinet and later to all MPs in the House of Commons. Just after this Statement, the Budget Report will be produced, as required by The Budget Responsibility and National Audit Act 2011. Collectively, we refer to these as, [...]
Auto-Enrolment Thresholds 2012/13
The Pensions Act 2011 required that Government annually reviews the auto-enrolment Earnings Trigger and Lower and Uppers bands of Qualifying Earnings. This ensures that the auto-enrolment process continues one of its objectives of targeting the lower-paid, whilst ensuring that as many people as possible are saving for their retirement. Also, the annual review ensures that [...]
The ‘Samosa Tax’
VAT has been charged on takeaway food for more than 20 years. However, ‘some new hot takeaway products’ are not being charged, most commonly from supermarkets and bakeries. They argue that foods like pies and rotisserie chickens are not sold to be eaten immediately, therefore, fall outside of the scope of VAT. The Chancellor is [...]
The ‘Granny Tax’
As we reported on 13 March 2012, The Office of Tax Simplification had previously identified the age-related allowances as a source of confusion and complexity. Further, the Coalition’s increases to the lower Personal allowance were reducing the difference between the lower and age-related amounts. In a move towards a universal tax allowance system, one of [...]
Tax Rates and Bands 2013/14
As we reported last week after the Budget, it was little surprise that an announcement was made about the ‘temporary’ Additional rate. From April 2013, The Additional rate will reduce from 50p in the pound to 45p. Mr Osborne claimed that ‘no chancellor can justify a tax rate that damages our economy and raises next [...]
Personal Allowance 2013/14
The Income Tax (Indexation) Order 2011 in the Finance Bill 2012 already provides for the Personal Allowances to increase from the start of tax year 2012/13, at which point L suffix codes increase by 63 points and the Emergency tax code becomes 810L. This was confirmed in the Autumn Statement of 2011 and is not [...]
Budget special, exploring the payroll implications
The Chancellor presented his annual Budget to Parliament on 23 March so this week’s newsletter explains those announcements that are relevant to payroll. The Budget did not contain many surprises, although the plan to consult on merging PAYE tax and NICs would have been unexpected had not the Office of Tax Simplification published their recommendations [...]
Budget – Personal tax allowances
From April 2011, the under-65 personal allowance increases from £6,475 to £7,475 as the first stage of the Government’s plans to increase the allowance to £10,000 before the end of the current Parliament. From April 2012, the personal allowance will increase by a further £630 to £8,105. However, as in April 2011, the basic rate [...]
Budget – Consumer Prices Index
The June 2010 Budget announced that the default indexation for direct taxes, including income tax and NICs, will be the (lower) Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI) from April 2012. However, to ensure employers and older people do not lose out, the Government has confirmed that there will be some [...]
Budget – Implementing the Office of Tax Simplification’s proposals
Last week’s newsletter included a review of two reports issued by the Office of Tax Simplification in time for consideration by the Chancellor for his Budget announcements on 23 March. A number of the recommendations found their way into the Budget, as follows. Of the various tax reliefs considered by the OTS, 43 are to [...]
Budget – Mileage allowance payments
For employees required to use their own car or van for work, the approved mileage rate for cars and vans will increase, from April 2011, to 45p per mile (up from 40p) for the first 10,000 miles in a tax year, and 25p per mile thereafter. For NICs purposes, the new limit is 45p per [...]
Budget – Company cars and vans
Appropriate percentage: For 2011/12, the appropriate percentages for company petrol cars range from 15% to 35% for emission ratings of 125 to 225 g/km. For 2012/13, the range, as already announced, will widen to between 11% and 35% for emission ratings of 100 to 220 g/km, with a fixed 10% for emission ratings below 100 [...]
Budget – Employer-supported childcare
The “generally-available” condition One of the statutory conditions for tax relief for employer-supported childcare is that it be made “generally available” to all of an employer’s employees. Employer-supported childcare refers to the provision of childcare under a contract between the employer and the childcare provider, and to the provision of childcare vouchers. Budget 2010 announced [...]
Budget – Anti tax avoidance measures
A number of measures are to be included in the 2011 and later Finance Bills to prevent the use of certain tax avoidance schemes. However, the Government has announced that measures will also be included in the 2012 Finance Bill to deter the continued use of avoidance schemes that are believed not to deliver the [...]
The Learn Centre 2011 Budget Summary
The Chancellor presented his 2011 Budget to Parliament on 23 March. A detailed review of the payroll-related measures will appear in our weekly newsletter on Monday, 28 March. The following is a short summary of the key measures set out in the 2011 Budget. Personal tax allowances From April 2012, the personal allowance will increase [...]
