Budget 2013 Winners and Losers

The Budget 2013 If it counts, itť's covered COvered The winners and losers Changes to state pensions: Winners: People with lower earnings who will qualify for the flat-rate £144 per week state pension and will benefit most from the higher personal allowance Losers: People with above average earnings and pension expectations who had contracted out of higher rate NIC Small businesses Winners: Employment Allowance means that small enterprises can take on staff without NIC (£1.3bn per annum from 2014/15 rising to £1.7bn from 2017/18) Charities Losers: Recipients of overseas aid whose budgets have been protected from the fall in GDP (£200m per annum) Banks III Losers: Banks with tax losses, who will still pay the higher bank levy (£250m per annum) Tax avoiders Losers: Tax avoiders as the Chancellor announced £1bn of measures to counter tax avoidance. Tax evaders with undeclared income in the crown dependencies (£240m for 2014/15) Beer drinkers Winners: Beer drinkers, who will enjoy 1p off a pint (£200m per annum) Personal allowance Winners: Personal allowance increased to £10k a year early, benefiting 3m of the lowest paid Drivers Winners: Drivers due to fuel duty freezes (£800m per annum) Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms. Deloitte LLP is the United Kingdom member firm of DTTL. This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. © 2013 Deloitte LLP. All rights reserved. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198. The Budget 2013 If it counts, itť's covered COvered The winners and losers Changes to state pensions: Winners: People with lower earnings who will qualify for the flat-rate £144 per week state pension and will benefit most from the higher personal allowance Losers: People with above average earnings and pension expectations who had contracted out of higher rate NIC Small businesses Winners: Employment Allowance means that small enterprises can take on staff without NIC (£1.3bn per annum from 2014/15 rising to £1.7bn from 2017/18) Charities Losers: Recipients of overseas aid whose budgets have been protected from the fall in GDP (£200m per annum) Banks III Losers: Banks with tax losses, who will still pay the higher bank levy (£250m per annum) Tax avoiders Losers: Tax avoiders as the Chancellor announced £1bn of measures to counter tax avoidance. Tax evaders with undeclared income in the crown dependencies (£240m for 2014/15) Beer drinkers Winners: Beer drinkers, who will enjoy 1p off a pint (£200m per annum) Personal allowance Winners: Personal allowance increased to £10k a year early, benefiting 3m of the lowest paid Drivers Winners: Drivers due to fuel duty freezes (£800m per annum) Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms. Deloitte LLP is the United Kingdom member firm of DTTL. This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. © 2013 Deloitte LLP. All rights reserved. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.