Budget Bytes - individuals

A brief overview of measures aimed at individuals. Call if you need help

Personal allowances
• In 2012/13 will increase by £630 to £8,105, and basic rate limit to decrease correspondingly.
*£126 less income tax for all, rich and poor
• In 2013/14 will increase by £1,100 to £9,205, and basic rate limit to decrease by £2,125.
*£220 less income tax for all, rich and poor
• You will still pay Class I National Insurance at 12% if you earn more than £7,592 pa in 2012/13

Additional rate of tax
• Down from 50% to 45% for those earning £150,000 pa or more. £2,500 less income tax if you earn £200K pa!
*Boom for higher earners.

New pensioners - ouch
• Personal allowances will not increase from 2013, and will not be available to those born after 5 April 1948!

Income tax reliefs will be capped.
• For anyone seeking to claim more than £50,000 in reliefs, a cap will be set at 25 per cent of income (or £50,000, whichever is greater).
• More to follow.

Child benefit
From 7 January 2013 Child Benefit for families earning more than £50,000 will be reduced by the imposing a charge on the (higher earning member of a couple) taxpayer. The charge will be;
• 1% of your income above £50,000 and below £60,000
• Equal to the Child Benefit paid
*Neutral if you each partner earns below £50,000 (family income up to £100,000):
*However penal if one of you earn the majority of the family income, you stand to lose all your child benefit.

Company Van tax
• Van fuel benefit multiplier to be frozen at £550, and increase by inflation thereafter

Company car tax, to increase, to increase, to increase
• Fuel benefit multiplier to increase from £18,800 to £20,200 from 6 April 2012, then 2%+inflation thereafter
• Higher emitting cars (75g CO2/km) +1%point to maximum 35% from 6 April 2014
• List price % to increase by 2% points in 2015/16 AND 2016/17 to maximum 37%
• Diesel cars – list price % to reduce by 3% points to the same as company cars from 2016
• Zero carbon cars tax exemption ends in 2015, cars entering on 13% appropriate percentage charge in 2015, rising to 13% in 2016

Employer asset-backed pension contributions
• Granting of up-front relief to be restricted, and anti-abuse provisions implemented with their effect backdated to 21 March 2012

Qualifying Recognised Overseas Pension Schemes
• New rules introduced to help prevent extra relief, than in UK, being received where pensions are transferred overseas.

Alcohol and Tobacco duty rates
Alcohol to increase by 2% above the rate of inflation (based on RPI) with effect from 26 March 2012;
• Pint of beer +3p
• Litre of cider +2p
• Bottle of wine +11p
• Bottle of spirits +41p
All tobacco products to increase by 5% above the rate of inflation (based on RPI) from 6pm on 21 March 2012;
• 20 cigarettes +37p
• Pack of five small cigars +12p
• 25g pouch of hand-rolling tobacco +37p
• 25g pouch of pipe tobacco +20p


<< More News Articles >>


Date : Wed, Mar 21st, 2012

News