How will the autumn statement affect Contractors and Contractor Accountants? Here we put the main points.
– Economy fell by 7.2% rather than the previously thought 6.3% in the downturn, one of the worst in the industrialised world.
– There was no double dip recession
– Growth predictions for next few years.2013 – 1.42014 – 2.42015 – 2.22016 – 2.62017 – 2.72018 – 2.7- 400,000 jobs increase forecast.
– Unemployment 7.6 & forecast to fall to 7% by 2015 andÂ 5.6% by 2018.
– Private sector has created 3 jobs for every one lost in the pubic sector.
– Deficit was 11% of GDP when Coalition took office Â£1 in every Â£4 of spending was borrowed.
– Underlying deficit falls to 6.8% this year.
– Debt should peak at 80% of GDP in 2015.
– Retirement age to be increased from 65 to 68 in the mid 2030s and 69 in the late 2040s. More details will come later.
– 30% of all income tax is paid by 1% of taxpayers.
– Largest package to attack tax evasion and avoidance to raise Â£9bn.
– Tax advantages of partnerships to be taken away.
– Capital gains tax on property owners who are not resident in the UK from 2015.
We will have further assessment of how the Autumn statement will affect contractors once we know more about the measures to tackle tax avoidance and evasion. Expect further analysis of the autumn statement.
If you have any questions about the autumn statement you should contact contractor accountants.