As you may have read recently, Chancellor George Osborne has said that he will deliver a new Budget on 8th July. He has claimed it will have “a laser-like focus” on raising productivity and living standards.
As usual, we will keep you updated on all the important changes via our App and also via our social media channels and monthly newsletter
Everything that can be done prior to the budget release will be changed, amended or updated in the App. This includes the calculators, the tax tables, tax rates and key dates. Any new announcements will then be reflected in the App as soon as possible to ensure you always have access to the latest information
Expected or possible changes
There is much speculation online about the likely changes, with general agreement that we will see cuts in welfare spending, changes to tax relief on pensions, more on ‘tax avoidance’ and amendments to AIA.
After the budget in March, the Institute for Fiscal Studies (IFS) said that Mr Osborne needed to spell out exactly how he plans to cut £12bn from welfare spending.
Another area of anticipated changes is a reduction in tax relief on pensions. Some advisors are urging clients to put as much into pensions as possible before the Budget.
Tax avoidance – Mr Osborne has said “We’ll crack down hard on tax avoidance and aggressive tax planning by the rich – because everyone should pay their fair share.” So it’s possible we might receive clarification on plans for a new criminal offence for accountants and others who abet tax evasion.
Annual Investment Allowance (AIA) – In his Autumn Statement, the Chancellor indicated that rather than reducing to £25,000, this would go up. At the time he didn’t say to what level, so this may also be confirmed on 8th July.
VAT – If the threads from other accountants on Accounting Web are anything to go by, there is a strong possibility that the VAT rate may go up.
Capital Gains Tax – In the run up to the Election the Conservatives promised to legislate against any increase in Income Tax, VAT or National Insurance. This could mean that an increase in CGT becomes more likely, especially when you consider the £5.8bn raised in 2013-14, although an increase of 50% over 2012-13 is still well below the peak of £7.9bn in 2008-09 when rates were as high as 40%