As you may have read recently, Chancellor George Osborne has said that he will deliver a new Budget on 8th July. He has claimed it will have “a laser-like focus” on raising productivity and living standards.
One of the great parts of a fixed monthly fee is that it covers all technical, tax and technological updates. So although this second budget was not anticipated, our team is on standby, as always, to work around the clock, if required, to make changes to your App.
As usual, we will keep you updated on progress via email, the App User Group on LinkedIn and also via our social media channels.
Everything that can be done prior to the budget release will be changed, amended or updated in the App. This includes the calculators, the tax tables, tax rates and key dates.
Expected or possible changes
There is much speculation online about the likely changes, with general agreement that we will see cuts in welfare spending, changes to tax relief on pensions, more on ‘tax avoidance’ and amendments to AIA.
After the budget in March, the Institute for Fiscal Studies (IFS) said that Mr Osborne needed to spell out exactly how he plans to cut £12bn from welfare spending.
Another area of anticipated changes is a reduction in tax relief on pensions. Some advisors are urging clients to put as much into pensions as possible before the Budget.
Tax avoidance – Mr Osborne has said “We’ll crack down hard on tax avoidance and aggressive tax planning by the rich – because everyone should pay their fair share.” So it’s possible we might receive clarification on plans for a new criminal offence for accountants and others who abet tax evasion.
Annual Investment Allowance (AIA) – In his Autumn Statement, the Chancellor indicated that rather than reducing to £25,000, this would go up. At the time he didn’t say to what level, so this may also be confirmed on 8th July.
VAT – If the threads from other accountants on Accounting Web are anything to go by, there is a strong possibility that the VAT rate may go up.
As always if you have any questions or queries please do not hesitate to get in touch.
Gillian Harris | Head of Client Care | 0800 803 0826