Recently, Chancellor George Osborne made his annual autumn budget statement, and although a number of important issues were raised, it was the proposed tax credit cuts that had been garnering the majority of media attention in recent weeks. As well as the proposed tax credit cuts, a number of other vital matters were also covered, that could potentially have knock-on effects for businesses and contractors working in a wide selection of different sectors. As working professionals and business owners, keeping up-to-date with the goings on of the economy is absolutely essential, as you will no doubt wish to find out what this year’s annual statement and spending review means for you, and how it could potentially impact you/your business. Here you’ll find a summary of some of the main key issues which were addressed in this year’s autumn budget.
Tax credit cuts abandoned – First and foremost, Osborne made a pretty surprising U-turn in regards to making tax credit cuts. Whilst the initial plan was to make tax credit cuts, Osborne has now abandoned that plan, at least for now, which is great news for individuals receiving working tax credits.
Police spending – Second on the agenda, was proposed cuts to police spending. The police here in the UK have already been hit hard with various cuts over the years, and again, the plan was to slash the police spending budget even further. Again however, the Chancellor had an apparent change of heart, and abandoned those plans, perhaps in light of recent world events?
Pension boosts – Another key note of interest on this year’s budget, was that pensions were set to increase, going up from £115.95 to £119.30, as from April 2016.
Isa allowances frozen – Savers however, were met with some not so welcoming news, as Isa allowances were set to be frozen at £15,240 as well as £4,080 for junior Isa accounts.
Increasing rents – Tenants may also be forced to pay more rent, which is due to stamp duty surcharges on buy-to-let properties. Landlords also will have to pay out more, as an increase of 3% for tax payments, will soon be rolled out.
Increased nursing training places – Osborne also announced an additional 10,000 training places for prospective nurses, as current figures show that more than 30,000 of the UK’s nurses come from overseas.
Digital tax accounts – And finally, to wrap things up, it was also announced that, by the end of the decade, each and every small business and working individual would have their very own digital tax account.
What does this mean for my business? – If you’re concerned about any of the issues raised above, or anything else covered in the annual budget statement, and want to know your options why not get in touch with us here at Phoenix and let our experts make things black and white for you and tell you your options and advise you on which steps you may wish to take next?