Following the Autumn update, there are many significant changes ahead in 2015 and beyond. We will be in touch in the new year with further details, but please contact us if you have any queries in the meantime. Some key changes are highlighted below:
Increased Personal Allowance
The standard tax free Personal Allowance will be increasing from £10,000 to £10,600 from 6 April 2015.
Bonus for some married couples
From 6 April 2015, married couples and civil partners will be able to transfer 10% of their Personal Allowance to their spouse, as long as they earn less than the new higher rate tax threshold of £42,385.
The new flexible drawdown pension rules come in to force from April 2015, giving greater flexibility and potential tax saving opportunities for those approaching/ over 55 years of age.
No tax relief for goodwill on incorporation
From this month, there will no longer be tax relief for writing off goodwill transferred from an individual/ partnership to a Ltd Company on incorporation. The Entrepreneurs Relief against Capital Gains Tax on such transfers/ disposals was also abolished.
Class 2 National Insurance reform
From April 2015, Class 2 NI will be collected through Self Assessment rather than the current 6 monthly bill or Direct Debit payment system. If you currently receive 6 monthly bills from HMRC, April 2015 will be the last one.
Keep up to date
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As ever, if you have any queries, please do not hesitate to contact a member of our team.
WISHING YOU A MERRY CHRISTMAS AND A HAPPY AND PROSPEROUS NEW YEAR!