The latest budget has just been announced by Chancellor George Osborne. It appears that austerity measures will continue until 2018/2019, when the budget deficit is expected to have been reduced to zero, as it is believed that faster growth alone will not balance the books. Here are the highlights of the budget from a small business perspective:
– The higher tax rate has been increased very slightly from £41,450 to £41,860.
– ISA limits have been increased to £15,000
– As of 6th April 2014, an employment allowance of £2000 begins. This means that an employer will not not be liable to pay the first £2,000 of employers NIC.