Currently, savers can only place half of their annual ISA allowance into cash ISAs, with the remainder having to be invested in stocks and shares.

The Nationwide argue that by granting all of the allowance to be used in cash ISAs savers would receive numerous benefits, such as those highlighted below -

• It would encourage people to save more
• It would help homebuyers save up larger sums of tax free cash towards a deposit.
• It would help those nearer retirement to move more of their savings into cash, giving them more certainty over their returns.

The change would allow savers to increase their cash ISAs from £5,640 to £11,280

The Chancellor hit back after the loss of the country’s prized AAA credit rating amid worries about weak growth and rising levels of debt.

Mr Osborne said Moody’s, the ratings agency which took the decision, had sent out a “clear message” about the levels of debt in the UK  and tough measures were needed to to reduce it.

It is widely expected that the main rate of corporation tax, already cut to 21p from 2014, will be further reduced.

The current 20p special rate for smaller enterprises could also come down as Mr Osborne looks to create the most favourable tax regime for business of all G20 nations.

The FSB has called for all micro businesses to be granted inclusion into The National Insurance Contribution (NIC) holiday Scheme which was launched in 2010. The scheme currently exempts start-up firms outside London, the south east and east of England from paying NICs for up to ten new employees.

In a submission to the Chancellor. The federeation said it would create 45,000 jobs.

Although the deadline for filing your paper tax return has passed, you still have time to avoid a penalty by filing your return online. The deadline for this is, however, fast approaching.

Failure to file your tax return by 31^st Jan 2013 incurs a £100 penalty, immediate action is therefore required.

Under 18’s who do not have a junior trust fund can invest up to £3,600 in a Junior ISA

16 – 17 year olds can invest up to £5,640 in a cash ISA

18+ can invest up to £11,280 in a cash ISA

To maximise relief, spreading  the cost of qualifying expenditure over two years can be advantageous.

Typically, if you make a purchase just before the end of the accounting year you will qualify for allowances a year earlier. Disposing of an asset also allows an earlier claim for relief – but be aware of the flip side – a potential additional charge to tax!

For more information please contact us here at CJS Accounting.

Click on the image to download your pdf copy.

For more info or to download the consultation please visit:

http://www.bis.gov.uk/Consultations/ending-the-employment-relationship