Budget 2013 ~ Employment Round-up
In case you missed it... The Chancellor announced his budget on March 20th 2013 and the key points impacting upon employment are summarised below: -
The 1% cap on public sector pay rises will be extended until 2015/16, with the exception of the Armed Forces.
The personal allowance for income tax was increased to £9,440 on 6th April 2013, for those born after 5th April 1948 and this will increase to £10,000 on 6th April 2014.
National Minimum Wage – the existing 17 pieces of legislation covering this will be amalgamated into one set of regulations. This has been promised by the end of April 2013, but no sign as yet!
Other changes which were announced and which will be brought in over an extended period include: -
Tax relief of up to £500 on health related interventions recommended by the Health and Work Assessment and Advisory Service for those with long-term health conditions.
Tax free loans to employees will be doubled to £10,000 with effect from the 2014/15 tax year and as long as the outstanding balance does not exceed this threshold at any point during the financial year, tax will not be chargeable.
The Chancellor announced the level of shares which can be held as free from tax and national insurance for employee-shareholders and similarly, the exemption levels for capital gains tax. However, review the point below for an update on this proposal...
Working parents will receive 20% tax relief on the first £6,000 of childcare costs to a maximum of £1200 per child; subject to various conditions including earnings and other support i.e. universal tax credits that the parents are in receipt of. Initially, this will apply to children up to the age of 5, but will be extended to cover children up to the age of 12.
The flat rate pension will be introduced in 2016 rather than 2017 and the Pensions Bill 2013 will be redrafted to reflect this change.