CHANCELLOR TO DELIVER AUTUMN STATEMENT ON 5 DECEMBER 2012
12 September 2012
The autumn statement, previously known as the Pre-Budget report, will be delivered by George Osborne on 5 December. Of course it may all be to do with the UK debt issue and re-igniting growth in business; however the Policy team will be listening and if there are any items of interest for payroll, we shall let members know.
BBC News press release
AUTUMN STATEMENT DECEMBER 2012
5 December 2012
The statement delivered by the chancellor today was met with a stifled yawn from Nick Clegg and a confused looking Vince Cable.
However there has been hesitant and mixed response from the business community. Responses from business groups have been mixed so far. For example The British Chambers of Commerce said Mr Osborne had taken a number of positive steps but was still tinkering around the edges and accountancy firm PwC says the statement was better for business than anticipated. The CIPP had expected an announcement in respect of the Operation of Tax and NICs integration work in the Autumn Statement as part of the simplification process. HM Treasury has confirmed to the CIPP that whilst still an important area of work, due to the demands on business with other tax simplification measures such as Real Time Information and the on- going work of the Office of Tax Simplification it would be best to delay this work until all other legislative changes have had time to bed in. The CIPP will of course continue to work with HM Treasury on this and other tax simplification measures. Personal Tax/Benefits and Credits For the tax year 2013-14 the Personal Allowance will increase to £9,440 and the basic rate limit will be set at £32,010. For 2014-15 and 2015-16 the increase in the higher rate threshold will be capped at 1%. Child Benefit rates are frozen in 2013-14 and will increase by 1% in 2014-15 and 2015-16. Tax credits disability elements are increased in line with Consumer Price Index (CPI).
Other elements are either frozen or will increase by 1% in 2013-14. Guardian's Allowance is increased in 2013-14 in line with CPI.
For 2013-14, there are no changes to the percentage rate of contribution for Class 1 and Class 4 National Insurance contributions (NICs) but there are changes to all of the thresholds and limits.
Also shown in the tables published was the car fuel benefit charge multiplier which will be increasing from £20,200 to £21,100 in April 2013.
The van fuel benefit charge will also be increasing from £550 to £564.
CIPP Comment Due to the unprecedented personal allowance rise announced in the 2012 Budget , it came as a welcome surprise that there is to be an additional increase in April 2013 of £235 up to
CIPP Policy News Journal
12/04/2013, Page 140 of 362
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