Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

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Monday, December 16, 2013

The Chancellors Naughty and Nice List

After mulling over The Chancellors autumn statement with our good friends at McBrides we came to the conclusion that it contained a little ‘festive cheer’ without too much to ‘wine about’ but as expected there were no ‘great surprises’.  So, in true Christmas spirit we've put together a few of the things on the naughty and nice list...

Chancellors Nice List

  • Earlier this year GDP growth forecast was 0.6% this has now more than doubled to 1.4%.
  • Unemployment is lower than anticipated at 7.6%. We now have the lowest proportion of workless households for 17 years.
  • From 2015 businesses will be exempt from paying the 13.8% Employers National Insurance Contributions over the basic threshold of about £7500 for employees aged between 16 and 21.
  • Business rate increases are linked to inflation. They were due to increase by 3.2% but have been capped at 2% and small business rate relief has been extended for a further year.
  • There is a £1000 incentive support for retail businesses and a discount on business rates for occupancy of previously empty premises.

Chancellors Naughty List

  • Governor of the Bank of England Mark Carney suggests he will consider raising interest rates when unemployment falls to 7% which is now predicted to be 2015.
  • Employers National Insurance Contribution savings for employees on minimum wage under the age of 21 could potentially be as little as a few hundred pounds per year.
  • There has been a big slap on the wrists for those naughty Limited Liability Partnerships who have been abusing their LLP status for tax planning purposes. Bringing people in as ‘self-employed’ LLP members (when they should in fact be employees) to avoid paying the 13.8% National Employers Insurance will not be tolerated. On 6th April 2014 three new ‘test’ criteria will be introduced to put a stop to this.

Download the full autumn statement here

Download the podcast of Garry Mumford's Autumn Statement Business Hub interview with Nick Paterno here

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