The Chancellor has announced that the Autumn Statement, which gives notice of the major policies to be announced in next year’s budget, will take place on December 5. However, we already know of two changes that are coming to effect over the next couple of years.
Firstly, the new Employment Allowance, which is worth up to £2,000 to all employers has been confirmed by the Government, having been first announced in the 2013 Budget. 
The Employment Allowance will reduce a business’s or charity’s national insurance contributions (NICs) bill by £2,000 over the course of the year’s PAYE payments. Employers will need to confirm their eligibility through their regular payroll process.
The Prime Minister said: ‘Small business and entrepreneurs are the lifeblood of our economy and this Government is firmly on their side’, and according to Government estimates, more than 90% of the benefit of the allowance will go to small businesses with fewer than 50 employees.
John Allan, National Chairman of the Federation of Small Businesses commented that: ‘Our members have said they’ll spend the savings on their business, either through investing in the business, increasing wages or taking on staff.’
Secondly, more than four million married couples and civil partners will be entitled to a new transferable tax allowance from April 2015, the Government has confirmed.
Under the scheme, eligible spouses and civil partners will be able to transfer £1,000 of their personal income tax allowance to their partner, where one is a basic rate taxpayer and the other earns less than the income tax personal allowance, resulting in a potential saving of up to £200 a year.
Couples will be eligible to claim the new allowance from the year of marriage, which brings back memories of Spring marriage bulge when people merried just before the end of the tax year to get the full year’s “Married Man’s Allowance”!. The allowance will not be given automatically, and claims for the allowance will need be made online.
The confirmation of a married couples’ tax allowance is one of a series of recent Government measures, including the announcement by Chancellor George Osborne of his intention to freeze fuel duty until after 2015, subject to sufficient savings being made elsewhere.
WatkinsonBlack are pleased to advise on these as well as other matters, including providing a very cost-effective payroll bureau service. If you want to arrange a no-obligation initial meeting on any taxation or accounting matter then please contact us.
Pictured: David Watkinson & Margaret Black from Watkinson Black.
Please note that these ideas are intended to inform rather than advise and you should always obtain professional advice before taking any action.
