The budget 2015March 26 2015, 0 Comments
The budget has arrived!
The budget has been announced and all in all, it was received rather positively by the British public.
This is unsurprising if you consider the content of George Osborne's speech, but even more so, his delivery.
There were several jokes made at the expense of Gordon Brown and Ed Miliband, and although politicians arguing in parliament is getting tiresome. Seeing a politician with a sense of humour certainly isn't.
Joking aside, the UK's economy has done well growing 2.6% faster than any other 1st world country, with a 2.5% growth forecast in 2015. Inflation is set to fall by 0.2%, the jobless rate fell to 5.3% and households are £900 a year better off than they were 5 years ago. So it seems to be good news all round!
What has the budget changed?
A lot has changed for both households and businesses. For instance a proposal to allow businesses to submit tax monthly instead of yearly changes a lot for us as a company! However as this isn’t coming to a head until 2020, we’ll be able to change our system to suit businesses that choose this method.
So what changes have affected you?
- Beer has had a duty cut of 1p, cider received a 2p cut and there was a 2% excise duty cut on scotch whisky.
- A planned increase in petrol duties was cancelled, saner heads prevailed and froze petrol duty.
- Tax free allowance is to be increased to £11,000 by 2017-18.
- A new ‘help to buy’ ISA has been introduced, first time home buyers will receive a £50 top up for every £200 they put towards a deposit.
- Pensioners will be able to trade in their annuities for money, the 55% tax charge which currently applies will be removed.
- Yearly paper tax returns are being dropped.
- There is to be a tax introduced on profits of ‘multi-national’ firms who move their profits offshore.
- £600m is going towards spectrum bands to improve mobile networks, to provide all homes with faster broadband.
- £1bn is being invested in Swansea bay to generate greater green energy.
- The gift aid limit for charities is to be extended by £8000.
- Investment in the North Sea is to be encouraged by cutting the supplementary charge of oil producers by 10%, as well as petroleum revenue tax to fall by 15%.
There are several different websites which have further information on changes that have been proposed in the budget. Try this BBC article for more information.