Corporation tax cut to 21pc following surprise reduction December 5, 2012 CORPORATION tax will be reduced to 21 per cent from 2014, following a surprise decision to cut the business rate even further than previously announced. The tax currently stands 24p in the pound and was already scheduled to drop to 22p in 2014. Yesterday’s announcement means it will instead drop even further on that date, giving [...]
Benefits squeeze means payouts will rise below rate of inflation December 5, 2012 WORKING age benefits will rise just one per cent over the next three years, well below the projected levels of inflation calculated by the government’s budget watchdog. The real-terms cut suggests that chancellor George Osborne brushed off strong opposition to the move from Liberal Democrats Nick Clegg and David Laws and work and pensions secretary [...]
Business cheers hike in tax-free spending limit December 5, 2012 SMALL businesses yesterday cheered a temporary increase in tax relief on plant and machinery purchases up to £250,000 designed to encourage companies to go on a New Year spending spree. The Annual Investment Allowance will rise from January 2013 for two years, up from the previous threshold of £25,000 to help encourage small businesses to [...]
Croaking chancellor squeezes past stumbling Balls December 5, 2012 BRITAIN is “on the right track,” George Osborne said yesterday. Unfortunately, given yesterday’s snowfall, the track was somewhat obscured, forcing the chancellor to spend an hour in the Commons chamber spreading financial breadcrumbs so we mere plebs can follow his route through the forest to the promised land of economic growth. But first – in [...]
Small firms get funding boost from ISA plans December 5, 2012 SMALL FIRMS could enjoy a lending boost, depending on the results of a consultation announced yesterday. The government consultation will consider allowing savers to invest in firms on the alternative investment market (AIM) via their stocks and shares ISA. This came in tandem with a hike in the yearly individual tax-free savings limit – bringing it from [...]
Fears increased bank levy will hurt lending and competition December 5, 2012 LENDING prospects took another knock yesterday as the bank levy was hiked again – though the government claimed it was needed to keep revenues steady even as the sector shrinks. Analysts warned the measure reduces incentives for banks to grow, takes money away from them which could be used to increase lending or capital levels, [...]
Cable’s plans get go-ahead December 5, 2012 A LONG touted UK Business Bank to help to provide financing to small and medium sized firms is to launch in Autumn 2014 after the Treasury confirmed £1bn of funds for the venture. The proposal, first announced in September by business secretary Vince Cable, will have a soft launch next Spring and will become fully [...]
HMRC funds to fight avoidance December 5, 2012 HMRC will receive an additional £77m to fight tax avoidance following yesterday’s announcement. There will also be new restrictions on the tax arrangements of firms that bid for government business, something that could have an adverse effect on outsourcers. Jason Collins of law firm Pinsent Masons said: “Reading between the lines, companies will not get government [...]
Shake-up for teachers as pay linked to results December 5, 2012 TEACHERS will no longer get an automatic pay rise every year simply by virtue of staying in the job and will instead be paid by results, with the best performers getting the biggest pay rises under plans announced yesterday. But no changes are planned for NHS, prison service and civil service pay, as the government [...]
Slow rise in threshold means 400,000 more paying 40p rate December 5, 2012 HUNDREDS of thousands more workers will be dragged into the higher rate tax bracket under new proposals announced yesterday, which will see the threshold rise at both below the rate of inflation and wage increases. The higher rate threshold will go up by one per cent in 2014-15 and 2015-16, bringing an additional 400,000 people [...]
