Chartered Management Accountants

2015 Budget Report

The UK 2015 Budget

Here are some of our favourite bits…

Income Tax

The personal allowance (£10,000 in 2014/15) rises from £10,600 in the coming tax year to £10,800 in April 2016 and then £11,000 from April 2017.

Annual Investment Allowance (Businesses)

£500,000 until December 2015

The Annual Investment Allowance will be reduced from £500,000 to £25,000 in January 2016 (although this could change) so be prepared for transitional calculations…

For example, if you had an accounting year running July 2015 to June 2016 you would have an allowance for £250,000 to December 2015 then £12,500 for the 6 months to June 2016
In total £262,500

Enterprise Zones

Extended to 31 March 2020 businesses investing in new plant and machinery in ECA sites in Enterprise Zones can qualify for 100% capital allowances.

New Pension Rules from April 2015

Help to Buy ISA

  • Invest initial £1,000
  • Plus invest up to £200 per month
  • One per Buyer
  • Tax Free Government Bonus 25% capped at £3,000 on savings of £12,000
  • Must be used for purchase of first home

R&D Tax Credits

Research and Development (R&D) tax relief (or credit) is a company tax relief that can either reduce a company’s tax bill or, for some small or medium sized (SME) companies, provide a cash sum. It is based on the company’s expenditure on R&D.

An increase in the rate of the ‘Above the Line’ (ATL) expenditure credit for large company
R&D activity from 10% to 11% from 1 April 2015.

An increase in the rate of relief for small and medium enterprises (SMEs) from 225%
to 230% from 1 April 2015.

Employment Allowance

The Employment Allowance which was introduced on 6th April 2014 will continue in 2015/16. If you are eligible you can reduce your employer Class 1 NICs by up to £2,000 each tax year.

You can claim the Employment Allowance if you are a business or charity (including Community Amateur Sports Clubs) that pays employer Class 1 NICs on your employees’ or directors’ earnings.

Edinburgh Office:

Phone: 0131 516 3885
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Bonnington Bond,
2 Anderson Place,
Edinburgh,
EH6 5NP
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info@stuartfergusonaccountants.co.uk

Falkirk Office:

Phone: 01324 632500
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Office 10,
16 Melville Street
Falkirk
FK1 1 HZ
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info@stuartfergusonaccountants.co.uk