Chancellor’s June 2013 Spending Review Statement ~ Highlights
- There is to be an overall £11.5 billion reduction in the Government’s revenue budgets for 2015/16 with only Health, Transport and Overseas Aid with modest increases.
- Much of the budget saving is to be invested in improving the infrastructure with new projects relating to road, rail and energy.
- There is to be a reduction of 2% in the Welsh budget allocation for 2015/16. There is to be a small increase of 0.3 per cent to the Welsh government’s capital budget from £1.4bn to £1.5bn.
- Council tax will be frozen for another two years from April 2014 saving the average household £100
- Plans for an ‘impressive’ M4 relief road south of Newport are to go ahead with consultation to commence in September 2013.
- A statement is to be made shortly in response to the ‘Silk Commission’ relating to devolved taxation powers for Wales.
Real Time Information (RTI)
- Following representations from stakeholders, HMRC has announced that it is to extend the temporary relaxation of the new RTI reporting rules for small businesses from October 2013 until April 2014.
- The relaxation allows employers with fewer than 50 employees who find it difficult to report each and every payment to employees at the time of payment, to send information to HMRC just once a month to tie in with their normal payroll run.
- Full details of the main RTI requirements can be accessed HERE
Child Benefit High Income Charge
- The child benefit claw-back charge commenced on the 7 January 2013 and applies where the highest individual income within a household exceeds £50,000.
- For 2012/13 any claw-back will be charged on a pro-rata basis for only three months of the tax year but will apply in full from the current tax year 2013/14.
- Where it applies for 2012/13 then HMRC need to be informed by 5 October 2013 in order that taxpayers are registered for online self-assessment.
- Full details of the child benefit charge can be accessed HERE
- The Government is to bring forward ‘shortly’ a 2010 manifesto promise to allow the transfer of an unused personal allowance between husband and wife or civil partners. The amount available for transfer is likely to be limited to around £750 resulting in a tax saving of only £150 for basic rate taxpayers.
- The VAT mandatory turnover registration threshold from 1 April 2013 has been increased to £79,000. Businesses with turnover approaching this figure should note that it is based on the cumulative turnover over the previous 12 months and therefore needs to be monitored closely at the end of each calendar month.
- The exemption on the first 15 pence per day in respect of luncheon vouchers provided to employees has been abolished from 6 April 2013.
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