The budget was pretty neutral overall. The outlook isn’t great for the country in terms of growth, we’re looking at only 0.6% this year compared to the 1.2% predicted four months ago. But what are the key issues for Mumpreneurs? Here is a summary of the key points.
Personal allowance raised to £10,000 from April 2014. This will mean that everyone can earn £10,000 per year before paying any tax, that’s £833 per month.
Introduction of childcare vouchers for working parents from Autumn 2015. For childcare costing up to £6,000 per year per child, these vouchers will cover 20% of the childcare costs of working families (up to £1,200 per child). This is the first time that such help has been available to self employed parents and will also help employed parents who don’t currently have a workplace childcare voucher scheme to take advantage of.
New Employment Allowance of £2,000 from April 2014. This one is good news for employers - you will be able to take on an employee with a salary of up to £22,400, or four on the national minimum wage, without paying any National Insurance Contributions.
VAT threshold rises to £79,000 from 1st April 2013. This modest increase means that only businesses with a turnover of above £79,000 need to register for VAT (although you can still register before then if you want to).
And just in case you’re interested ...Tax on beer cut by 1p per pint and the 6p rise next month is scrapped, but wine is going up by 10p per bottle.
So all in all it’s pretty good news for working parents, but not so good for stay at home mothers, including those who run small business around their children without relying on childcare.