The official "Budget 2014" thread

[Sausage Surprise]

This £1600 a year worse off.

Surely the increase in the personal allowance and freeze on beer (and cider) and fuel duties must make a contribution.

By the way, I heard a reference to £2000 refund for every company employing people. The 'Employment Allowance'

Do we get this, if we pay ourselves more than the NI limit?

EDIT: oooh, nice
https://www.gov.uk/employment-allowance

"Personal and Managed Service Companies who pay contract fees instead of a wage or salary, may not be able to claim the Employment Allowance, as you cannot claim the allowance for any deemed payments of employment income."

Does this mean we can or can't?

[pjclarke]

The first, and probably last time I've linked to the Mail. 'The Thick of It' is actually a documentary, y'know.

[SueEllen]

The first, and probably last time I've linked to the Mail. 'The Thick of It' is actually a documentary, y'know.

The same as Twenty Twelve.

I though both programs were far-fetched rubbish when I first watched an episode. Then when I watched them both later I realise they were fly-on-the-wall documentary series.

[lukemg]

Absolutely HUGE.

I've got a SIPP pension (i.e. Deposit cash as and when choose. Personally decide how much (0-100%)to invest in stocks n shares/what stocks n shares/when to sell stocks n shares. Could leave as 100% cash if preferred).

Being able to take the whole lot out as cash (after 55) rather than buying some boring annuity from an insurance company is excellent.

You dont have to buy one now and would be mad to do so. You can use income drawdown (just gone up to 150% of what basic annuity pays)
Taking the lot out does involve paying tax on it, just less than before and you can take it all now.
This will provide a bump to the gvnmt coffers I reckon as people cash in.
First priority is generate 12k from other sources then you can take what you want in drawdown but 150% of annuity rate is prob still a sensible proportion.

[doodab]

I can't believe that is a real advert. Absolutely priceless.

[Zero Liability]

"Personal and Managed Service Companies who pay contract fees instead of a wage or salary, may not be able to claim the Employment Allowance, as you cannot claim the allowance for any deemed payments of employment income."

Does this mean we can or can't?

I love it when they use the words 'may not' to mean 'will not'. I think the upshot of it is, if you're subcontracting someone under that arrangement, you can't apply the allowance to that. I can't see why it wouldn't apply to the director's salary which is, after all, salary. Otherwise, I don't quite know what it means.