Our notes on the 2013 Budget

As widely publicised, the tax free personal allowance for most UK taxpayers will increase to £10,000 from 6 April 2014 (up 5.9% from £9440 in 2013/14).  Also the VAT registration threshold increases to £79,000 from 1 April 2013 (was £77,000).

Also starting from April 2014 employers will be exempt from paying the first £2,000 of their employers national insurance liability.  For example a company could have one worker on a salary of £22,400 or four workers on the national minimum wage and pay no employers national insurance (usually 13.8% of salary above £642 per month).  This will not affect employee’s national insurance or the national insurance on self-employed earnings.

There will be a new childcare scheme in place from autumn 2015 worth up to £1,200pa per child. This will replace the existing childcare vouchers scheme, but existing use of that scheme may be allowed to continue.

Anti-avoidance to be tackled particularly in the areas of limited liability partnerships with limited companies as partners, loans from companies (instead of dividends or salaries) and off shore tax planning.  These are all strategies we have consistently thought too high risk and have advised against taking up.

Prior to this budget, company cars with zero emissions have a 0% benefit in kind. From 2015-16 company cars emitting 0-50g CO2E/km will have a benefit in kind of 5% list price, 51-75g CO2E/km BIK of 9% list price.