The Budget is just a few days away now, so what can we expect?
In the autumn statement last November:
Personal allowances and income tax thresholds where frozen, ensuring the more people paid higher levels of tax, it is unlikely this will be undone at this stage.
Dividends and Capital Gains Tax Allowances were cut, which means you will be paying more tax in these two areas now and into the future, again we are unlikely to see these being changed again, but you never know.
Although not something we normally look at Corporation tax is due to increase to 25% from 19%, there is a lot of noise around this saying it should not happen, it would be good for companies if it didn’t as they would have more to invest in growing their businesses and the economy.
Next week when the chancellor stands up and delivers his announcement we could see more help with energy bills from April, this could be presented as a hooray moment, but it will soon become a resounding Boo when we all must pay this additional spending back.
An increase of the Lifetime Pensions Allowance may happen, this would encourage older people back into the workforce as they could save more into their pensions without hitting this limit and paying a higher tax rate.
There could also be an increase in the state pension retirement age, it was already planned to increase this from 67 to 68 in 2028 and then to 68 around 2044/2046, unfortunately there is talk of pushing to 68 by 2030, meaning those born after 1970 will have to wait longer to be able to access their state pension!
What every happens we will be listening and watching intently on the day and will issue a budget update later in the evening/early morning next day, so please keep an eye on your inbox.