Single Tier Pension
The state pension will be increased by £5.30 next year, one of its largest increases ever. The government will also press ahead with its previously announced plan to merge the basic state pension and the state second pension into just one simple tier. At current values the full state pension will be worth £140 a week. Further detail will be published on this topic later in the year.
Tax Simplification
VAT: revalorisation of registration and deregistration thresholds
The Government has announced that the VAT registration and deregistration thresholds will be changed so that: · the taxable turnover threshold, which determines whether a person must be registered for VAT, will be increased from £73,000 to £77,000; · the taxable turnover threshold which determines whether a person may apply for deregistration will be increased from £71,000 to £75,000; and · the registration and deregistration threshold for relevant acquisitions from other EU Member States will also be increased from £73,000 to £77,000. The simplified reporting requirement (three line accounts) for the income tax Self Assessment return will continue to be aligned with the VAT registration threshold. Following the Office of Tax Simplification review of small business taxation, the Government will consult on introducing a voluntary cash basis for unincorporated businesses up to the VAT registration threshold, with a view to introducing legislation in Finance Bill 2013. It will also consult on a simplified expenses system for business use of cars, motorcycles and home. Finally, the Government will also consult on proposals to introduce a disincorporation relief. The consultation will look at the potential demand for such a relief as well as the practicalities of how it would work. CIPP comment: The CIPP welcomes the Chancellor’s announcement to radically change the tax system for small business, making tax returns simpler for up to 3 million firms with a turnover of up to £77,000. Tax Transparency The Government wants all taxpayers to benefit from greater transparency in the tax system, so they understand what taxes they pay and how much. HMRC will provide more accessible information to all taxpayers on their tax affairs. In April, it will launch an online Business Tax Dashboard, which will offer a quick and easy way for businesses to see how much tax they have already paid and how much they still owe. And from 2014/15, HMRC will also improve transparency for individual taxpayers. A new Personal Tax Statement will be available to all individuals who file their Self Assessment return online (and some taxpayers in PAYE). It will detail how much tax and National Insurance they have paid, average tax rates and show them how those deductions contribute to public expenditure. Tax simplification for small businesses
CIPP Policy News Journal
09/10/2012, Page 106 of 234
Made with FlippingBook - Online magazine maker