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Autumn Statement Summary

George Osborne started his Autumn Statement by explaining that the forecasts he made a year ago have turned out to be optimistic. Naturally, there was plenty of shouting from those sitting opposite in the House when he put the blame elsewhere: a sharp increase in global prices for fuel and agricultural commodities driving up inflation, the problems with government borrowing in the eurozone, and the long-term impact of the 2008/09 financial crisis turning out even worse than anticipated. In the Chancellor's view, the measures that he has taken so far have limited the damaging impact of these external shocks, and he proposes to carry on with more of the same.

Ed Balls claimed that the lower growth forecasts were proof that the government is cutting too far, too fast – but he is in the comfortable position of never being able to know whether he would have coped any better.

Usually, next year's tax rates and allowances are released immediately after the Chancellor sits down, and the commentators can calculate the effect on the average taxpayer straight away.This time, they were only added to the Treasury website much later in the day. It had appeared that the Chancellor was returning to the old days when the allowances were the finale of the March Budget, but it seems that someone simply forgot to press a button at the right moment.

This newsletter highlights some of the important measures that Mr Osborne announced and their likely impact on taxpayers.

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Autumn Statement Tax Rates

Income Tax Rates and Allowances

 

Allowances and Reliefs

 

 
2012/13
2011/12
Allowed at top rate of tax    
Personal Allowance
£8,105
£7,475
Personal Allowance (65 – 74)*
10,500
9,940
Personal Allowance (75 and over)*
10,660
10,090
Blind Person's Allowance
2,100
1,980
Allowed only at 10%
Married Couple's Allowance (75 and over)*+
7,705
7,295
Income limit for age-related allowances
25,400
24,000

*Age allowances are reduced £1 for every £2 by which income exceeds the income limit, until the age allowance is reduced to the normal allowance. Personal allowance is reduced before married couple's allowance. MCA is reduced to a minimum of £2,960 (2011/12: £2,800). Personal allowances will be withdrawn at £1 for every £2 by which total income exceeds £100,000. There will therefore be no allowances if income is £116,210 or more (2011/12: £114,950).

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Insurances

Boox has a unique partnership with Jelf Manson to offer our contractors all the insurances needed when contracting.

As a contractor it's essential that you have the right insurances in place. Not only for peace of mind should anything go wrong, but having the right contractor insurances will make you a stronger contender when tendering for new contracts and business. You'll be one step ahead of your competitor.

What Insurances do I need to know about?