Chancellor has listened to manufacturers, says Monahans
Following George Osborne’s Budget on 19 March, Dominic Bourquin, corporate tax partner at Monahans, said the Chancellor had listened to pleas from manufactures not to stifle growth and instead, help them invest in new machinery and enter export markets.
“The £7bn package to help businesses lower their energy costs is very welcome,” he said.
He also approved of the increase in the Annual Investment Allowance (AIA) from £250,000 to £500,000 – especially as it was to have been cut to just £25,000 this year. “Most manufacturers in the Bath area employ fewer than 10 people so these changes may not help them as much as larger manufacturers, but the focus of this Budget on manufacturing does send out the right signal,” he said.
Monahans has provided a summary of the key announcements in George Osborne’s Budget. Many of the changes revealed were re-announcements from the Autumn Statement of little more than three months ago. Nevertheless, the improving economic landscape did allow the Chancellor to spring a few surprises.
- Basic rate personal tax allowance to increase from £10,000 to £10,500 in 2014/15
- The higher tax threshold to rise from £41,540 to £41,865 in 2014/15
- A new scheme to provide 20% of childcare costs up to £10,000 per year per child under 12, tax free from autumn 2015
- The new single-tier pension to be introduced from April 2016
- Businesses and charities to receive employment allowance of £2,000 to set against employer national insurance contributions (NICs) from April 2014
- A single rate of corporation tax of 20% to apply for companies from April 2015.
- Stamp duty to be abolished for shares listed on exchanges (e.g. AIM) from April 2014
- A limited one year extension of capital gains tax (CGT) reinvestment relief for seed enterprise investment schemes (SEIS)
- Extension of the first part of the Help to Buy Scheme until 2020
- Specific anti-avoidance measures alongside the new general anti-abuse rule (GAAR)
To read Monahans’ full budget summary, click here.
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Monahans – Backgrounder
With 16 partners and a total staff of around 120 across its offices in Bath, Chippenham, Glastonbury, Swindon and Trowbridge, Monahans is one of the largest independent chartered accountancy groups in the west of England. The firm, which also incorporates Monahans Financial Services Ltd, provides a full range of accountancy, tax, investment, insurance and human resource services to businesses and private individuals:
Accountancy Services, available to all types of organisation including limited companies, partnerships, sole traders, charities and trusts. Services include full production of accounts, tax computations, book keeping and a management accounts function.
Audit Services, providing independent confirmation of clients’ accounts, adding credibility in the eyes of third parties.
Business Recovery and Insolvency, helping both businesses and private individuals understand their options and make informed choices.
Business acquisition and disposal, maximising the value and tax efficiency of the sale of businesses and helping clients research, initiate and conclude purchasing opportunities.
Elite Payroll Service, taking the hassle out of this time-consuming, yet crucial financial function. Monahans is a BACS Approved Payroll Bureau and handles payroll procedures to the value of more than £4 million every month.
Employee Benefit Services, a range of employee benefits designed to help clients attract and retain the best people. Benefits include pensions, death in service schemes, private medical insurance and eye tests, retirement options, childcare vouchers and cycle to work schemes.
Forensic Accounting. Acting as an expert witness, expert adviser or expert determiner, Monahans offers extensive and in-depth experience in dispute processes.
HR Solutions, offering ad hoc support as and when required or acting as the client’s in-house human resources department.
IT Services, a range of business and finance-aligned IT advisory services and software solutions. Monahans provides management information systems, specialist reporting, database development and admin and management training.
Strategic Business Improvement, including strategic and financial planning and a business development consultancy.
Integrated Tax Services, helping businesses, trusts and individual clients understand the complexities of theUK and international tax systems and minimise tax liabilities within the legal framework.
Monahans encourages its staff to think creatively and, through a structured support system, has created an environment in which people can develop their skills and further their careers. As well as an ACCA (Association of Chartered Certified Accountants) Gold Award for the quality of training it provides its trainees, Monahans has been awarded ACCA Approved Employer – Professional Development status.