Expansion of dental teams made easier by 2013 Budget
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- Published: Wednesday, 20 March 2013 23:01
- Written by News Editor
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In a variety of ways, the Chancellor has cut the staffing costs of employers as well as making it easier for potential employees to move home or organise childcare says Charles Linaker, a Partner in dental accounting specialists UNW LLP.
Following the Chancellor’s Budget announcements before a rowdy House of Commons, NASDAL listed some of the key benefits for practice-owners and their teams:
- An uplift from 5k to 10k in employer loans that can be made without giving rise to a taxable benefit on the employee – helpful for season tickets or other transport.
- ??Help with the purchase of new-build homes for those trying to get on the property ladder. ??As long as the property is worth less than £600k and the purchaser can find 5% for the deposit, the Government will provide a loan of 20%.
- The confirmed increase of Personal Allowance to £10,000 from 6 April 2014, a year earlier than planned.?
- From April 2015 Corporation Tax will go down to 20 per cent. It’s the first time since 1973 there has been a single rate and this will benefit all incorporated dental practices as well as dental corporate chains.
- A tax-free Personal Allowance increase to £10,000 will come into effect from 6 April 2014, a year earlier than scheduled, and this will help team members working part-time or starting work half way through the tax year.
A pre-Budget announcement relevant to all dental employers is that Her Majesty’s Revenue and Customs has decided today to postpone the introduction of Real Time Information (“RTI”) for payroll taxes from April to October for employers with fewer than 50 staff. This will give a bit more time to have the right systems in place to cope with what is billed as the biggest shake up to PAYE since it was introduced in 1944.
Other measures that may affect dentists are:
- Capital Gains Tax Relief for sale of businesses to employees
- New tax relief to encourage private investment in social enterprises
- Working families to receive up to £1200/child towards child care costs
- Flat rate pension of £144 a week brought forward to 2016
- Help for Equitable Life policy holders who bought annuities before 1992
- Social care costs for the elderly to be capped at £72,000 from 2016
- New Help to Buy scheme – Shared Equity Loans worth up to 20% of a new build home (repaid when home is sold). This is for all purchasers of newly built homes under £600,000. There will also be a Mortgage Guarantee Scheme for purchasers of an old or new home who cannot afford a large deposit. This scheme will run for 3 years.
- September’s planned Fuel Duty increase has been cancelled
- Annual increase on alcohol duty of 2% above inflation still stands with the exception of beer. The duty on beer has also been cut by 1p from Sunday night.
- New Employment Allowance worth up to £2000 cut on Employers National Insurance Contributions to help small firms.
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