With two Budgets in 2015 it does not feel like that long ago since we last had a Budget but the next one is not that far away and will take place on Wednesday 16 March 2016. Ahead of the Budget the CBI have written to the Chancellor outlining what they would like to see in the Budget proposals.
The CBI emphasise that businesses have suffered sizeable policy costs which impact on their ability to remain competitive. These include the Apprenticeship Levy, the National Living Wage and also pension auto enrolment. They therefore want the government to provide additional tax incentives to promote productivity and the delivery of jobs. Examples would include:
- new capital allowances for investments in structures and buildings
- allowing smaller companies claiming research and development tax credits to be able to claim repayments in part payments throughout the year rather than yearly
- introducing a payroll incentive to help small firms with the costs of hiring high-skilled staff along the lines of the Employment Allowance.
We will keep you informed of pertinent Budget announcements.
Internet link: CBI
The government has announced that the date of the Autumn Statement will be 25 November 2015.
The Chancellor of the Exchequer, George Osborne, has announced that there will be an Office for Budget Responsibility forecast alongside the Spending Review on Wednesday 25 November 2015. The government will therefore publish a joint Autumn Statement and Spending Review on this date.
We will keep you informed of key announcements.
Internet link: GOV.UK News
HM Treasury is encouraging groups, individuals and representative bodies to submit their ideas for consideration in advance of Budget 2015.
HM Treasury has also published guidance on the correct procedure for making a representation, which advises that ‘representations should contain policy suggestions for the upcoming fiscal event and explain the policy rationale, costs, benefits and deliverability of proposals’.
‘It should also be evidence based, providing clear arguments on how it contributes to the aims of the Budget.’
Written representations for the 2015 Budget can be submitted until Friday 13 February, via an online survey or by emailing email@example.com.
Chancellor George Osborne will present Budget 2015 on Wednesday 18 March.
Internet link: News
The Chancellor George Osborne delivered his Autumn Statement on 3 December and said:
‘…to improve the productivity of our economy, we back business and we build infrastructure and we will support growth across the whole UK.’
‘But in the end, Britain’s future lies in the hands of its people and their aspirations.
The aspiration to save, to work, and to buy a home. Today we support each one.’
We have included details of some of the major announcements.
Internet link: gov.uk
Many of the tax rates and allowances are fundamental to our business and personal lives and the main ones are summarised here. We are sure that you will find it a useful point of reference throughout the coming tax year but if you have any questions please contact us
George Osborne presented his Budget on Wednesday 19 March 2014.
In his speech the Chancellor set the scene for the announcements stating that ‘If you’re a maker, a doer or a saver: this Budget is for you.’
Towards the end of last year the Government issued the majority of the clauses, in draft, of Finance Bill 2014 together with updates on consultations. The publication of the draft Finance Bill clauses is now an established way in which tax policy is developed, communicated and legislated.
The Budget updates some of these previous announcements and also proposes further measures. Some of these changes apply from April 2014 and some take effect at a later date.
Our summary focuses on the issues likely to affect you, your family and your business. To help you decipher what was said we have included our own comments. If you have any questions please do not hesitate to contact us for advice.
Main Budget tax proposals
- The starting rate band for savings will be increased from April 2015 and the current 10% tax rate reduced to nil.
- Individual Savings Accounts are to be simplified by merging the cash and stocks ISAs together with a significant increase in the investment limit from 1 July 2014.
- Radical changes are to be made to the pensions regime including removing the restrictions on access to pension pots so there will no longer be a requirement to buy an annuity.
- The Annual Investment Allowance is to be doubled to £500,000 until 31 December 2015.
- An increase will be made in the R&D tax credit available to loss making SMEs to 14.5%.
- Those using tax avoidance schemes may be required to pay tax upfront.