Budget 2012; What Does it Mean to You

For individuals

The income tax personal allowance is set to rise again, not just as scheduled in April 2012, but next year too. It will go up further in April 2013 to £9025.00. This is a step forward towards raising it up to £10000.00. On the otherhand, the 50p tax rate is to be brought down to 45p raising the issue of it being anti competitive when compared to other EU countries

For Pensioners

The state pension age is already scheduled to rise to 67, for both men and women, by 2026. At present, the over people over the age of 65 can earn £10,500 before tax, while those over 75 can earn 10,660, but those age-related allowances will be removed for new pensioners from April 2013

For Businesses

The changes announced through this budget have been significant for businesses.Firstly, the owners of unincorporated businesses will be relieved from some of the burden of accounting for tax purposes, with a new system of cash accounting. There’s also a suggestion for a consultation on simplifying the tax system for small firms with a turnover of up to £77,000.

Child Benefit

The child benefit threshold now is £50000.00. When someone in a household has an income of more than £50,000, the child benefit will fall by 1% for every £100 earned over £50,000. Anyone earning more than £60,000 will lose the benefit completely

Source; bbc.co.uk

Read more on

http://www.bbc.co.uk/news/business-17461472

If you want to know how the measures introduced by the budget 2012 impacts your business, contact KVS Accountants. We serve as accountants for the areas of Notting Hill, Tooting, Balham, Holland Park, Clapham and Clapham Common.

 

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