as always the real budget won't appear until the treasury document is published. (which will appear on this page sometime after George finishes his speech : http://www.hm-treasury.gov.uk/budget2013.htm)
when people have had chance to analyse the real impact hidden beneaath the hype use this thread to post your comments so that we keep the whole topic together in one place.
I bet Bills just sitting on the treasury page now waiting for the documents to appear. lol.
My money is on NI for the self employed being brought in line with directors NI.
I would like to see IR35 killed but somehow just don't believe that will happen anymore.
I'm also expecting some changes in zero and low rated VAT classifications up to standard rate.
Money on the most used phrase or saying in the speech "in these tough economic times".
right, lets see what happens next...
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
they're looking to concentrate on avoidance and evasion via partnership losses, transfer pricing, chasing high net worth individuals (on the assumption that if you have some money then you must be doing something wrong) and they're looking to throw more resources at evasion by use of offshore financial vehicles.
That was actually announced some time back but there should be more detail in the treasury document later today.
Someone just needs to keep a leash on Georges attack dogs to ensure that they realise that there is a huge difference between avoidance (which is legal) and Evasion (which is not).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Someone needs to take control with HMRC. There is nothing wrong with tax avoidance plans. For George Osborne to talk about shaming practitioners who come with tax planning that works is disgusting.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Obviously the removal of beer duty increase is the headline here.
Other slightly less important points are the reduction of corporation tax to 20%, which if you consider what we were at a few years back is quite a drop.
I will be interested to see how they also plan to implement the exemption of the first £2,000 of employer's NI.
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Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
Well, I've neither read every word nor indeed every paragraph but my first scan comes up with these points of interest.
1.209 & 2.222 tackles the partnership / LLP issue but gives no real details.
1.211 specifically targets avoidance schemes as opposed to evasion.
1.214 is already outlawed and doesn't need new rules. Don't know why that one's in the budget unless the government doesn't realise their own rules!
2.42 on collection of class 2 seems a good idea. A thumbs up to George for that one.
2.52 befefical loans for employees to increase from £5k to £10k from FA14.
2.53 Lifetime Pension savings limit reduced from £1.5m to £1.25m and annual allowance for pension contributions is down from £50k to £40k
2.70 CGT AEA up from £10.6k to £11k
2.136, 2.137 and 2.138 are important but need great expansion of detail.
And the really (really, really) worrying one's :
2.200 Data gathering from merchant acquirers (my understanding is that such means the likes of Tesco clubcard)
2.210 Power to detain goods during an investigation (that's right, DURING!!!).
2.211 Giving HMRC asset recovery powers in house rather than via the police.... Really...
Looking forwards to seeing points that others find of interest buried in there.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Another point i note, is that all rates of corporation tax will be 20%. No more of that stupid marginal relief calculation, not that anyone does it manually any more.
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Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
I missed the Budget - can anyone explain what this was and how it will work in practice?
ETA : I just see that Nick has asked the exact same question as regards how will it be implemented.
-- Edited by Peasie on Wednesday 20th of March 2013 06:32:05 PM
Very interesting how this will work. The plan is that the allowance will be deducted from the employer NI liability.
But what if you are a owner/shareholder who pays himself the minimum amount to avoid paying tax and NI. If they pay no employers NI surely they cannot deduct £2,000 from that liability!
I must admit to being cautious when I read the word 'company' in a lot of commentary. The few I have anything to do with with don't pay much NI. However, then he goes on to say 'every business'.
FROM HM TREASURY:
" The Employment Allowance will work by taking the first two thousand pounds off the employer National Insurance bill of every company.
Its a tax off jobs.
Its worth up to £2,000 to every business in the country.
And it will mean that 450,000 small businesses one third of all employers in the country - will pay no jobs tax at all. "
Anyone care to speculate if he's giving himself room for manoeuvre by using a word that narrows this 'tax off jobs' to limited company's?
1.19 National Insurance: £2,000 employment allowance The Government will introduce an allowance of £2,000 per year for all businesses and charities to be offset against their employer Class 1 secondary NICs bill from April 2014. The allowance will be claimed as part of the normal payroll process through RTI. The Government will engage with stakeholders on the implementation of the measure after Budget 2013 and is seeking to introduce legislation later in the year.
