Chancellors Autumn Statement – 5.12.2012

7th December 2012

Some key points following the Autumn Statement are as follows:

The annual investment allowance increases from £25,000 to £250,000 from 1.1.2013. This is the amount which attracts 100% tax relief in year one on expenditure on plant, machinery, equipment and commercial vehicles.

Small companies rate of corporation tax will remain at 20%.

The personal allowance increases from £8,105 to £9,440 from 6.4.2013. The basic rate limit will be £32,010 meaning higher rate tax will start at £41,450.

From 6.4.2013 employees will start paying National Insurance on earnings above £149 per week at a rate of 12%. Employers National Insurance will start on earnings above £148 per week at a rate of 13.8%. Self-employed class 2 NI increases from £2.65 to £2.70 per week and class 4 NI is payable at 9% on profits above £7,755.

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