Quick Reminder of some of the main tax changes which come into effect from 6 April 2013
8th April 2013
Here is a quick reminder of some of the main tax changes which come into effect from April 6 2013 and those planned for 2014 onwards.
Income tax rates Personal allowance will increase to £9,440 from April 6 2013.
Company cars and fuel From April 6 2013 there are increases in the percentages used to calculate the tax charge for company cars. There is an increase in the car fuel multiplier from £20,000 to £21,000.
Employee benefits The Government plans a package of measures to simplify tax-advantaged share schemes for employees. These Include the Enterprise Management Incentive, Luncheon vouchers, abolishing some small reliefs and trying to bring PAYE and national insurance rules closer together.
Payroll giving The scheme allows employees to make donations to charity through payroll. The Government has announced measures designed to simplify the administration to encourage greater use.
Pensions From 6 April 2014, the annual limit for pension tax relief reduces from £50,000 to £40,000. The lifetime limit reduces from £1.5 million to £1.25 million. In 2016 there are plans to introduce a single state pension, changes will include employers and employees paying more national insurance and also seeing the end of the second state pension.
Residence A new statutory test of residence is introduced from April 6 2013, designed to introduce some certainty into an area where significant amounts of tax can be involved.
If you would like to discuss the changes with us, please contact us.
To read the full article on the recent alterations to tax and PAYE, download here:
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