The Autumn Statement – key changes to rates and allowances

The Chancellor of the Exchequer delivered the 2013 Autumn statement on 5 December 2013. Key changes announced are as follows:

2014/15 rates and allowances
As announced in the Budget 2013, individuals born after 5 April 2013 will have a personal allowance of £10,000 for 2014/15. The basic rate limit will be £31,865.

Transferable personal allowance
From April 2015, a spouse or civil partner will be entitled to transfer up to £1,000 of their personal allowance to their spouse or civil partner. This will not be available were either spouse/civil partner is a higher rate tax payer.

New Class 3A NICs
From October 2015, Class 3A National insurance contributions will be introduced. These are a new class of voluntary contributions which will provide those who reach state pension age, no later than 5 April 2016, the ability to boost their additional state pension.

Employer national insurance contributions abolished for under 21s
From 6 April 2015, employers will not be required to pay national insurance contributions on earnings of under 21s (unless their earnings exceed the Upper Earnings Limit which is estimated to be £813 a week from 2015/16!). This will be separate from, and additional to, the ‘Employment Allowance of £2,000 announced earlier this year.

If you would like to discuss the impact of the Autumn Statement on your business or you personally, please feel free to contact us.