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Two
Important dates to Consider
No sooner is the new year upon us than we must
start to consider two important future dates - the Budget and the start of the
new tax year on 6th April.
The Budget
The Chancellor gave clear indications in his
pre-budget report issued in December last year of some of the main content of
the Budget, including the following:-
Personal Tax
A number of personal tax allowances are
to be increased in line with inflation, as are the rates of national insurance.
These new rates will commence on 6th April.
Business Tax
The Chancellor announced that there will be an overhaul of the tax regime in
relation to small companies and the self employed. Amongst the more likely
areas for consideration could be the payment of national insurance on dividends
paid by companies together with legislation to reduce the amount of expenses
that the self-employed are at present able to claim.
Pensioners
The basic state pension will rise from 6th April 2005 and the part of the
Pension Credit that provides a minimum income will also be increased.
Savings
The Chancellor announced that he is to consult in relation to keeping the
present higher limits on Individual Savings Accounts (Isas). It could be
that these higher limites are left in place for longer - may be until 2009.
Families
The Chancellor announced a number of measures that will affect many families
in Great Britain. these are the following
:
Maternity & Paternity Leave
Paid maternity leave which, at present, is for a period of 6 months will
be increased to 9 months by April 2007, increasing to 12 months by the end of
the net Parliament.
Minimum Income Guarantee
This will increase to £258 per week on a one child family where one
parent is in full time work. For a single parent working part time the
increase will be to £199 per week.
Nursery Care
From April 2007 there will be an extension of Childcare and in
particular free nursery education for three and four year old children is
to be increased to 15 hours per week. In addition, and to help parents who both
work, funds will be made available to keep schools open from 8am to 6pm.
Child Trust Fund
The Chancellor announced that an additional £250 will be given to each child
eligible for the Child Trust Fund when the child reaches the age of 7.
Single Parents
In an attempt to entice single parents back to work, an additional
£40 per week will be granted to single parent who return to work after having
spent a year or more on income support or jobseekers allowance.
Additional help for low to middle income earners
An additional £70 per week will be available for low to middle income
earners from April 2005 to assist with the costs of their children.
The New Tax Year
In addition to considering the contents of the
Budget, our readers should, once again be ensuring that they take any necessary
measure to reduce their tax liability before the start of the new tax year.
These measure will include the utilisation of personal allowances, using any
capital gains tax and inheritance tax exemptions, deferring the payment of
capital gains tax by disposing of investments and reviewing pension
contributions. If we
are able to assist in relation to any of the above points, please do not
hesitate to contact us. |
