What does the Chancellor’s Budget mean for you? Financial Advice in Coleraine, Ballymoney, Co Antrim, Co Londonderry, Limavady, Portrush, Portstewart
I’d hoped to get this out earlier today but it was one of those days and before I bath baby Daisy I’ve a few minutes to write this up. It’s not a very exciting budget and has been described as “fiscally neutral” i.e. what the chancellor gives with one hand he takes back with the other. On the positive side, the simpler (and for a lot of people much more generous) state pension system will kick in one year earlier than expected. This means that those reaching state pension age in April 2016 or later will receive a flat rate of £144. For more detail click here for a previous blog I wrote on the subject.
The personal allowance (the amount of money we can earn before any tax is due) increases to £10,000 from April 2014. The typical basic rate tax-payer will pay an estimated £705 less in income tax as a result of this.
Beer duty is cut by 1p a pint from 25 March and cigarettes will increase in cost by 5%. The proposed fuel duty on petrol and diesel has been scrapped but the rate of Air Passenger Duty will continue to rise as before.
A new childcare voucher scheme means that families with children under 12 can claim 20% of childcare costs back in tax, subject to a total of £1200 per child under 12.
Inheritance tax thresholds are set at £325,000 for individuals and £650,000 for couples for 3 years from 2015.
We had hoped that there would be some indication that child trust funds could be moved into Junior ISAs and the government has announced that it will look into this.
Corporation tax is being cut by 1% to 20% in April 2015.
There will be a new employment allowance worth up to £2000 to businesses employing staff.
That’s me. Daisy needs her bath!
By David Gibson