Budget 2021 - What does it mean to you?

[The Reverend]

I saw this on the BBC Website
http://www.bbc.com/news/uk-politics-35813973

"New tax free allowances for "micro entrepreneurs" who rent their homes or sell services through the internet"

There was also this.

Personal taxation

The threshold at which people pay 40% tax will rise from £42,385 to £45,000 in April 2017

Tax-free personal allowance to rise to £11,500 in April 2017

Capital Gains Tax to be cut from 28% to 20%, and from 18% to 10% for basic-rate taxpayers


I'm trying to find more on the 'micro-entrepeneurs' bit, but good reading for some.

(p.s. Not all the budget was good, just trying to focus on what will affect us)

 

[The Reverend]

"Second, we’re going to help the new world of micro-entrepreneurs who sell services online or rent out their homes through the internet.

Our tax system should be helping these people so I’m introducing two new tax-free allowances each worth £1,000 a year, for both trading and property income.

There will be no forms to fill in, no tax to pay – it’s a tax break for the digital age and at least half a million people will benefit.

On top of these two measures comes the biggest tax cut for business in this Budget.

Business rates are the fixed cost that weigh down on many small enterprises.

At present small business rate relief is only permanently available to firms with a rateable value of less than £6,000.

In the past I’ve been able to double it for one year only.

Today I am more than doubling it, and I’m more than doubling it permanently.

The new threshold for small business rate relief will raise from £6,000 to a maximum threshold of £15,000."

Taken from here.

https://www.gov.uk/government/speeches/budget-2016-george-osbornes-speech

 

[rrobson]

The income tax changes are welcome, as is the £1k tax-free for online earning.

No rise in beer duty is always good news for me.

I'm curious about the lifetime ISA thing. Are they offering free money?

 

[Chammy]

Personal allowance increase + increase in the higher rate threshold is welcome here...husband is slowly approaching the higher rate so holding off that extra chunk in tax will be nice for a while.

 

[rrobson]

A bit more information on the lifetime ISA:

http://www.bbc.co.uk/news/business-35820757

Looks like if you're under 40 now, you'll get a bonus 25% on everything you save up to a limit of £1,000 per year until you're 50. This can then be withdrawn tax free at any time after age 60, or before that if you're using it to buy a house.

Not clear at this point if it's first time buyers only like the existing help-to-buy ISA or if I can use it for the next step up the ladder.

 

[rrobson]

They've published a guide now:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508117/Lifetime_ISA_explained.pdf

First time buyers only.

He did hint at maybe allowing withdrawal for "other life events" though, so possibly still good for house moves.

 

[Twiggy]

A rise in personal allowance, very welcome. Doubt anything else will affect us in any major way.

 

[askgar]

They've published a guide now:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508117/Lifetime_ISA_explained.pdf

First time buyers only.

He did hint at maybe allowing withdrawal for "other life events" though, so possibly still good for house moves.

I've just taken out a Help to buy ISA, looks like this is designed to replace it.

 

[katykicker]

Increase in 40% bracket and personal allowance here. Also the new ISA change/new lifetime ISA will be of benefit to us

Have to look at the positives.

Sugar tax will probably wipe out my increases (I joke - I think)>

 

[jackieblack]

I've just read that they're going to levy a 'gambling tax' on the free bets bookies give out. No detail yet but something to look out for.

 

[Jon]

I've just read that they're going to levy a 'gambling tax' on the free bets bookies give out. No detail yet but something to look out for.

that's to do with the free bets the video machines give you in the bookies from memory, nothing to do with MBing

 

[rrobson]

Just read another review of the budget, made the entrepreneur tax relief a little clearer.

If you're making up to £1,000, just ignore it, no need to declare it.

If you're making over £1,000, you can have the first £1,000 tax-free instead of calculating expenses.

So for must of us, no need to figure out what can be counted as "computer equipment" (my new TV counts, right?) unless you're really spending a lot.

So maybe a little cash saved, but a lot of effort saved.

 

[RichardBrum]

Just read another review of the budget, made the entrepreneur tax relief a little clearer.

If you're making up to £1,000, just ignore it, no need to declare it.

If you're making over £1,000, you can have the first £1,000 tax-free instead of calculating expenses.

So for must of us, no need to figure out what can be counted as "computer equipment" (my new TV counts, right?) unless you're really spending a lot.

So maybe a little cash saved, but a lot of effort saved.

I believe that entrepreneur tax relief is a different thing.

New tax allowances for money earned from the sharing economy
From April 2017, there will be two new tax-free £1,000 allowances – one for selling goods or providing services, and one income from property you own.

People who make up to £1,000 from occasional jobs – such as sharing power tools, providing a lift share or selling goods they have made – will no longer need to pay tax on that income.

In the same way, the first £1,000 of income from property – such as renting a driveway or loft storage – will be tax free.

It looks to be based on the 'Rent a Room' scheme, where you can earn up to £4250 without having to declare it or pay tax on it, however you cant then claim for any costs/expenses.


http://www.ft.com/cms/s/0/b99dae3c-eb81-11e5-bb79-2303682345c8.html

The Treasury said the tax breaks would apply to those making small amounts of money from selling goods online or renting out second homes or spare rooms over the internet.

 

[Jon]

What do we think is going to happen then in this pre brexit Budget?

There is a heck of a lot of uncertainty going on at the moment!!

Announcements already include

• An increase in spending on mental health services in England by at least £2bn a year
• A £30bn package for England's roads, including repairs to motorways and potholes
• £900m in business rates relief for small businesses and £650m to rejuvenate high streets
• £60m on planting trees in England
• Plans to cut the cost of weddings in England and Wales
• Another freeze in fuel duty

 

[homie]

Quite a lot of money dished out. Seem to have given up getting the deficit down.

But nothing in it for me, as usual.

 

[Jon]

Quite a lot of money dished out. Seem to have given up getting the deficit down.

But nothing in it for me, as usual.

What would you have liked to have seen for you in the budget?

 

[homie]

What would you have liked to have seen for you in the budget?

The threshold for National Insurance to be at £12500, the same as income tax. And a reduction in stamp duty would help me right now, not just the silly cut for shared ownership.

But a VAT cut on tea and biscuits would save me me the most money.

 

[Jon]

I want to know what the heck this one means..

• Remote Gaming Duty to increase to 21% for online gambling on "games of chance" from 2019

 

[homie]

I want to know what the heck this one means..

• Remote Gaming Duty to increase to 21% for online gambling on "games of chance" from 2019

Online slots and casino games I think.

 

[Jon]

Online slots and casino games I think.

ah man 20p spins on TED are gonna become 24p spins!!