Full details of changes coming in to play can be found here

The main points of interest are detailed below:

  • The personal allowance will increase to £10,600 from April 2015, and then to £10,800 in April 2016 and finally to £11,000 in April 2017. The current age allowance is being phased out so there will only be one personal allowance for all. For those that we prepare the payroll for we will make the appropriate adjustments
  • For those with savings, the first £1,000 of interest will be tax-free (£500 for higher rate tax payers)
  • Corporation tax will now be one rate of 20% from April 2015 for all companies, bringing the end to the tiered system for larger companies. For those with multiple companies, this will mean the end to higher rates of tax where profits in any company exceeded £300,000
  • The generous Annual Investment Allowance for the purchase of capital items comes to an end in December 2015, however, a review will be carried out in the autumn to review what the new level will be. Suggestions are that this will be higher than £25,000 so there may not be any need to bring forward capital expenditure. We expect to hear further details later in the year.
  • The VAT registration threshold has increased to £82,000 from April 2015
  • New flexibility is being introduced to ISA so that withdrawals can be made during the year and repaid in. A new Help to Buy ISA will also start later in the year to help those looking to buy their first home
  • Tax-free childcare is being revamped with further options for working families. This will come into effect from Autumn 2015
  • A major announcement was the creation of digital tax accounts to help with the preparation and submission of tax returns. which will be beneficial for those with very simple affairs. For those who own businesses or who have slightly more complex affairs, which covers most of our clients, the completion of an annual tax return will still be available which will give opportunities to carry out efficient tax planning

 
A major announcement was the creation of digital tax accounts to help with the preparation and submission of tax returns, which will be beneficial for those with very simple affairs. For those who own businesses or who have slightly more complex affairs, which covers most of our clients, the completion of an annual tax return will still be available which will give opportunities to carry out efficient tax planning.

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