Chamber hosts Budget Breakfast with Streets Chartered Accountants

MORE than 100 people attended a Budget Breakfast at KC Stadium to hear how this year’s Budget may affect them and their businesses.

Held in association with Streets Chartered Accountants and introduced by the Chamber’s new President, Tim Durkin, tax experts Katie De Niese and Geoff Taylor explained how 2.7-million people had been taken out of the tax system following the increase in personal allowances and 1.1-million extra people will now become higher rate taxpayers.

The audience heard that company cars are no longer the attractive perk they once were and company car drivers are now better off buying their own car and claiming 45p per mile. Tax free loans of up to £10,000 from employers may be used to enable employees to buy their own cars.

The capital gains tax allowance increased to £11,000 per person per year.

Parents paying for childcare have also been helped, with the average cost of £38.50 per day adding up to the £10,000 quoted, with the Government now chipping in £2,000 or 20% of that cost.

The unexpected pension changes which have proved a major talking point are expected to create a £3-billion windfall for the Treasury from people paying more income tax on drawing down their pension pots.

And more good news comes for people contributing to pension schemes in that you can now do so beyond the age of 75 if you so wish. Pensioner bonds will allow savers to get an interest rate of 2.8% on a one year bond, and 4% on a three year bond.

Inheritance tax has been frozen at £325,000 until at least 2018, but Streets’ experts warned people to be aware and plan carefully for this as more and more people are becoming eligible to pay this tax as house prices increase. They also warned about Capital Gains Tax and urged people with larger estates to consider using a Trust.

ISAs are merging, so that cash and stocks and shares ISAs will become one, with a limit of up to £15,000 per year.

Premium bonds savings limits are also being increased, rising from £30,000 to £40,000 this year, and £50,000 next year – and the good news is, there will be more £1-million prizes for savers.

For more information, contact Streets Chartered Accountants on (01482) 225399 or visit www.streetsweb.co.uk