Farley And Partners

PERSONAL TAX

INCOME TAX ALLOWANCES AND TAX RATES

The personal allowance will increase to £10,600 from 6 April 2015, an increase of £100 from that previously announced.

The basic rate limit changes to £31,785 (currently £31,865) with the higher rate threshold above which income tax is payable at 40% increasing to £42,385.

STARTING RATE LIMIT

The starting rate limit on savings income will increase to £5,000 (currently £2,880) for the 2015/16 tax year.

REMITTANCE BASIS CHARGE FOR RESIDENT NON DOMICILES

The annual charge that is currently payable by non domiciled individuals resident in the UK who wish to retain access to the remittance basis will increase:

  • The charge paid by people who have been UK resident for 7 out of the last 9 years will remain at its current level of £30,000.
  • The charge paid by those who have been UK resident for 12 out of the last 14 years will increase by £10,000 from £50,000 to £60,000
  • A new charge of £90,000 will be introduced for those who have been UK resident for 17 of the last 20 years. The government will consult on making the election apply for a minimum of 3 years.

TAX CREDITS

Tax credit payments will be reduced in-year from April 2015 where, due to a change of circumstances, a claimant would otherwise receive an overpayment.

SUPPORT FOR CARERS

The carer’s allowance earnings limit will increase from £102 to £110 per week from April 2015.

At the same time the government will extend the £2,000 annual NICs employment allowance to households that employ care and support workers.

This means that a family will be able to employ a care worker on a salary of up to £22,500 and pay no employer NICs.

Carers will be exempted from the impact of removing the £8,500 threshold below which employees do not pay income tax on beneits in kind.

ENLARGING THE SOCIAL INVESTMENT TAX RELIEF SCHEME

Subject to state aid approval, the government will increase the investment limit to £5 million per year per organisation, up to a maximum of £15 million per organisation.

Small scale community farms and horticultural activities will be eligible for the relief from 6 April 2015.

CAR BENEFITS

The company car fuel beneit multiplier increases from £21,700 to £22,100.

VAN BENEFITS

The standard van fuel beneit increases to £594 (currently £581) while the van beneit charge is increasing to £3,150 (currently £3,090).

Contact us today to talk about how the measures announced at the Autumn Statement 2014 afect your tax and inancial planning.

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