The agricultural sector gets its fair share of tough news all year round, but there’s no getting away from the fact that the Budget brings with it additional stresses and pressures.
Will there be rabbits pulled from the chancellors hat that weren’t anticipated? Will there be last minute planning opportunities that your advisors have failed to bring to your attention? These questions are always on your mind when you read the next day Budget analysis. It’s for this reason we’ve put together this list of 5 things to watch from the 2013 Budget. While not all the points will be relevant to everyone, there’s likely to be something in the handful of points that applies to most.
- Are you seeking to make a pension contribution in excess of your annual allowance? If you’re planning for your retirement and have spare cash, it’s highly likely that one of your considerations may well be to make a sizable pension payment. That’s all good and well, but if the amount you’re hoping to pay exceeds the annual allowance then the reduction of the PIP (Pension Input Period), will be of interest to you. PIP limits are to be reduced from £50,000 to £40,000 for PIPs ending in the 2014/2015 tax year. As a result, if you’re looking to make a significant payment, it’s a good idea to review your PIP with a degree if urgency because you may be caught out by this change if you don’t.
- Other investment opportunities include Seed Enterprise Investment Schemes, whereby qualifying investments made will attract a 50% income tax relief as well as an exemption to capital gains tax on reinvestment. For cash-rich business owners, this could mean that a real investment of £10,000 could end up costing as little as £2,200. Again, this opportunity, which is still relatively new, is interesting.
- For those of you who have employees, Real Time Information (RTI) is something that is likely to be high on your current list of priorities. Again the Budget reinforced the need for a serious approach to RTI. It was mooted that after a settling in period of anything between six months and a year, there are likely to be serious penalties afoot for those people who fail to deliver RTI as it’s intended. On this note, now is definitely the time to be getting your RTI ducks well and truly in line.
- On the subject of pay, the welcome news that the first £2,000 of Employers’ National Insurance contributions will not be payable has been received with open arms. This not only encourages employment, but also may call for a restructuring of director or shareholder pay arrangements, so once more, this is something worth investigating.
- Last but not least, the benefits of staying out of the sights of HMRC was reinforced as being something to be taken very seriously. The message was loud and clear in the Budget that the recent step up on tax avoidance is not going to calm down. With task forces galore and targeted campaigns to snare tax avoiders, it’s beginning to look like there will be fewer and fewer places to hide.
You can read more about each of these eye-catchers in our 2013 Budget Eye-Catchers document
If you think that you should be considering any of these or any other matters raised by the Budget and you’d like an outside view on where you go from here, why not get in touch?
After all, it costs nothing to chat and you may well be surprised at the opportunities there are to plan your affairs differently.