There have been a few predictions made on the Spring Budget tomorrow. Here are a few we have come across.
It is predicted workers will be able to put more money into their pension pot before being taxed, in a bid to get workers to stay in work longer. This budget package includes, the pension lifetime allowance (LTA) will be increased from £1.07m to £1.8 (or £1.5m according to different sources), along with an increase in annual allowance from £40,000 to £60,000 and the money purchase annual allowance (MPAA) (which limits the amount people can put into their pension tax-free after accessing their pot) is predicted to increase from £4,000 to £10,000.
The Chancellor is reportedly planning a ‘sick note crackdown’, focusing on getting long-term sick people back into work with the support they need, rather than being signed off work. This is predicted to happen alongside changes to the benefits system, allowing sick people who work part-time to claim some sickness benefits.
Energy Bill Support
The Government’s Energy Price Guarantee, which caps energy costs for households, is scheduled to rise from £2,500 to £3,000 on April 1. It is predicted that it will be kept at that level for another three months until July. From July, when the price guarantee ends, it’s expected bills will fall to £2,000 as wholesale gas prices fall.
It is predicted the expected RPI inflation rise on fuel duty in April, which would add 7p to the price of a litre of fuel, will be canceled. In addition, the temporary 5p fuel duty cut, which is set to expire this March will be continued.
The expected corporation tax rise in April is expected to go ahead, seeing businesses face a six percentage point increase in the corporation tax rate, taking it from 19pc to 25pc. Businesses with profits of more than £250,000 will be hit. Companies with profits between £50,000 and £250,000 will get marginal relief. For businesses with profits of less than £50,000, there will be no change, and they will continue to pay corporation tax at 19pc.
It is predicted the corporation tax super-deduction, which allows businesses to cut their tax bill by 25p for every £1 that they invest, will end on March 31.