Park McKillop & Company - Budget 2013 Highlights

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Budget 2013 Highlights

  • The personal allowance will be raised by 560 from 9,440 in 2013/14 to 10,000 in 2014/15. To compensate for this the basic rate limit is reducing from 32,010 in 2013/14 to 31,865 in 2014/15.
  • The nil rate band for inheritance tax (IHT) will be frozen at 325,000 until April 2018.
  • The pension annual allowance has been 50,000 since 2011/12, but it is being reduced to 40,000 from 2014/15.
  • The annual exemption for capital gains has increased from 10,600 in 2012/13 to 10,900 in 2013/14.
  • The main rate of corporation tax will be cut to 24% from April 2012, 23% from April 2013, 21% from April 2014 and 20% from April 2015.
  • From 1 April 2013, the taxable turnover threshold, which requires a person to register for VAT, will be increased from 77,000 to 79,000 per annum; the threshold below which a VAT-registered person may apply to deregister will be increased from 75,000 to 77,000 per annum.
  • Small companies' research and development tax credit remains at 225%.
  • From April 2014 every business and charity will be entitled to a 2,000 Employment Allowance towards their employer national insurance contributions (NICs) bill.
  • In order to ensure compliance with RTI a number of new penalties will be introduced for employers operating Pay As You Earn (PAYE) to ensure employers comply with the information and payment obligations, which will apply on and after 6 April 2014.

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