2013 Budget Highlights

Treasury Chancellor George Osborne has announced his 2013 Budget today. Here is the summary of the Budget:

• An increased income tax allowance from £9,440 in 2013 to £10,000 from April 2014, an increase which is one year earlier than expected.
  
  
• The main rate of corporation tax will be cut from 23% in 2013 to 22% in 2014, then down to 20% from April 2015.
  
  
• Around 450,000 small businesses will pay no Employer National Insurance after the introduction of a new Employment Allowance.
  
  
• The economy is expected to grow by 0.6% in 2013, which is half of the previously forecasted 1.2%.
  
  
• In the future anyone wanting to buy a new-build property will be able to access a 20% government loan as long as they have a 5% deposit.
  
  
• A crack down on tax avoidance will bring in £4.6bn over the next five years.
  
  
• The planned 3p rise in fuel duty has been discarded; the price of beer will be reduced by 1p per pint.

Whilst the 2013 budget did not bring any huge surprises, George Osborne placed emphasis on helping businesses to grow and establishing the UK as the most attractive place to innovate and do business. SME’s will be provided assistance to create jobs and the reduction of the main rate of corporation tax to 20% by 2015 will result in the UK having one the most competitive rates in Europe. This is a welcome move given the backdrop of weak economic growth in the UK.

A more detailed analysis of the Budget will follow. Please monitor the website for updates. Belsize Accountancy are specialist accountants for contractors and small businesses.