With the 2014 Budget drawing ever closer, we’ve been thinking about what we would like to see result from George Osborne’s 19th March address.
Firstly, it would be great to see an increase in personal allowance. Another sizeable increase would bring the tax free earnings allowance close to the national minimum wage, which we believe would be a positive move. There needs to be more incentive to get back into work, particularly for those receiving unemployment related benefits. In addition, with a rise in interest rates in the not too distant future, a reduction in income tax would help to balance the increase on our mortgage payments.
A fairer business rates regime would also be beneficial. Many businesses have become frustrated at the way business rates are calculated in reference to rateable value. Companies have been put off investing in energy-efficient equipment because of the effect on rateable value and, ultimately, the business rates they pay.
Finally, a reduction in Employer’s National Insurance would be ideal for small businesses. As well as the gross wages that employers pay their hard working team, they are also required to pay Employer’s National Insurance, calculated at 13.8% of their earnings above the secondary earnings threshold. We are expecting confirmation of a £2,000 reduction of every Employer’s National Insurance bill. This would be a welcome announcement for small companies, who would feel an immediate benefit to their bank balance.
