IT was an early start for delegates at the recent Autumn Statement briefing held at the Northampton offices of leading tax and business advisors, MHA MacIntyre Hudson. Tax Partner Rachel Nutt said that ‘this Autumn Statement was a very different presentation from the Chancellor’s last set-piece, the Budget of last March. On this occasion he was able to say that his previous forecasts had been too pessimistic: instead of borrowing more than expected in the future, the government would be borrowing less.
IT was an early start for delegates at the recent Autumn Statement briefing held at the Northampton offices of leading tax and business advisors, MHA MacIntyre Hudson. Tax Partner Rachel Nutt said that ‘this Autumn Statement was a very different presentation from the Chancellor’s last set-piece, the Budget of last March. On this occasion he was able to say that his previous forecasts had been too pessimistic: instead of borrowing more than expected in the future, the government would be borrowing less. The Chancellor could even see a surplus on the distant horizon of 2018/19, albeit only a small one’. However, politics and the uncertainty of forecasts meant that there were no giveaways from Mr Osborne. Instead, he produced a fiscally neutral set of measures, many already announced or briefed, but some unexpected. In a series of measures to assist employers the investment limits for share incentive plans will rise to £3,600 for free shares and £1,800 for partnership shares from April 2014. The SAYE limit will double to £500 per month. In addition, from 6 April 2015 employers will no longer pay Class 1 National Insurance contributions on earnings paid up to the upper earnings limit to any employee under the age of 21. There was also some good news for individuals as the overall annual individual savings account (ISA) subscription limit for 2014/15 will rise to £11,880, of which £5,940 can be invested in cash. Furthermore, the personal allowance will increase to £10,000 in 2014/15, the higher rate (40 per cent) tax threshold will increase by £415 to £41,865 and there will be a new transferable tax allowance of £1,000 for married couples and civil partners from April 2015. However as part of the ongoing fight against tax avoidance the Chancellor announced a raft of specific employment anti-avoidance measures, mostly aimed at arrangements designed to disguise employment. Rachel said: “The Chancellor has used his Autumn Statement to show he is pro-business in the UK, and through careful planning Northamptonshire businesses should be able to reduce their company and personal tax liabilities.” For a free consultation or further information on these issues contact Rachel Nutt, Tax Partner, MHA MacIntyre Hudson on 01604 624011, email or visit www.macintyrehudson.co.uk