What the election result means for your business and finances


With the conservatives winning the recent election, here’s what we can expect to change:


Taxes


The Tories have issued a triple pledge on tax: they will not raise income tax, National Insurance or VAT in the next parliament.

The party also promises a tax cut for 31million workers, by raising the National Insurance threshold from £8,632 now to £9,500 next year. That's worth about £104 to someone on £25,000 a year.


The personal allowance for income tax is already £12,500, and the manifesto declares: 'Our ultimate ambition is to ensure that the first £12,500 you earn is completely free of tax – which would put almost £500 per year in people's pockets.'


The Conservatives also plan to forge ahead with a digital services tax, which will slap a 2 per cent levy on the revenues of large search engines, social media platforms and online marketplaces derived from UK users (above the first £25million) from next April.


Pensions


The Conservatives say they will keep the triple lock - which guarantees state pension rises of at least 2.5 per cent - the winter fuel payment, the older person's bus pass and other pensioner benefits.


They also promise a comprehensive review of how to fix a tax anomaly which sees workers, mostly women, earning between £10,000 and £12,500 lose pension top-ups automatically paid to the better off.


The party has just come out with a one-year fix for the so-called 'taper problem', which sees doctors turn down shifts for fear of massive pension tax bills, and it promises urgent talks with the medical profession to solve the matter.


But it falls short of saying it will abolish the taper, which pension experts believe is the only viable fix.


Mortgages for first-time buyers


The headline-grabbing housing policy is a promise to build 300,000 homes a year by the mid-2020s – but this is not in fact a new policy and has been the Government's target for some time.


The party also promises to encourage a 'new market' in long-term, fixed-rate mortgages for first-time buyers, in particular for those with small deposits – similar to deals in America and Europe where 30-year mortgages are more normal.


However, experts within the mortgage sector have cast doubts on how successful such a scheme would be, citing a potential lack of consumer appetite for locking into a deal for so long, and asking what happens if someone fixes at too high a level during the interest rate cycle, and whether there will be exit costs.


Small Businesses


The Conservatives have declared the intention to make Britain the 'best place to start and grow a business', and unleash potential in terms of investing, hiring, exporting and growing following Brexit.


An increase of the Employment Allowance for small businesses will mean a tax cut for half a million small firms, while there are also plans to expand start-up loans following high take-up from women and BAME (Black, Asian and minority ethnic) entrepreneurs.


However, the party has proposed a review of entrepreneur's relief. This perk reduces capital gains tax when you sell all or part of a business, and is highly valued by owners, particularly when planning for retirement.


Source: https://www.dailymail.co.uk/money

Read the full article: https://www.dailymail.co.uk/money/news/article-7788791/What-Conservative-government-mean-money.html


Need help? Speak to one of our experts on 0800 690 6355 or arrange a free consultation.

Companies
Help & Support
Opening Hours
Monday  9am - 5:30pm
Tuesday  9am - 5:30pm
Wednesday  9am - 5:30pm
Thursday  9am - 5:30pm
Friday  9am - 5:30pm
Saturday  CLOSED
Sunday  CLOSED
Contact
The Business Store Ltd 2020.
All rights reserved.
Registered office as above. Company no. 08563808.
  • White Facebook Icon
  • White Twitter Icon
  • White LinkedIn Icon
The biz store long logo.png