Budget 2013 initial review of main findings- Budget Speech 20 March 2013
COMPANIES AND EMPLOYERS
Mr Osborne extended his cuts to corporation tax, reducing the main rate to 20% by April 2015, down from 28% when the coalition government came to power.
He also introduced a new “employment allowance” for every company in the country, reducing their total employer National Insurance by £2,000 each. It is estimated that 450,000 small firms will pay no employer National Insurance.
Employers will be able to offer their staff up to £10,000 per person in tax-free annual season ticket loans.
In addition, it was announced that Government procurement from small firms is to rise fivefold and there would be tax relief for investment in social enterprises.
INCOME TAX
To help middle-earners, Mr Osborne promised to increase the personal allowance to £10,000 in April 2014, a year earlier than first planned. “If you want to work hard and get on, we are on your side,” Mr Osborne said. “This is a budget for an aspiration nation.”
PENSIONERS
The flat-rate pension worth £144 a week will be brought forward to 2016. The cap on social care costs will come in 2017 and will protect savings above £72,000. The threshold for means-tested help will be raised from £23,000 to £118,000.
FAMILIES
The Budget confirmed the government’s announcement on Tuesday of a new system of taxpayer subsidy for childcare.
Tax-free childcare vouchers, worth £1,200 per child, will be on offer, along with increased support for families with children on universal credit.
Fom the autumn of 2015, working parents will be able to claim vouchers to subsidise the cost of childcare for every child under five.
Parents earning up to £150,000 will be able to claim back up to £1,200 of childcare costs a year.
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