Budget 2015: What WAHMs Need To Know
What could be the last Budget of George Osborne was announced on 18th March and there are many points which are extremely relevant to WAHMs and dads. From changes to the tax threshold to a complete overhaul of the self-assessment return, there are a wide range of points from Osborne’s Budget that self-employed parents need to be aware of.
George Osborne’s speech began with the statement that ‘Britain is walking tall again’ and many of his economic points did seem to support this idea but beyond this, it’s the finer details we’re interested in and below is a simple rundown of some of the key points of this Budget most likely to affect you.
The End of the Annual Tax Return
Sometimes the worst time of the year for work at home mums and dads by 2020 the Annual Tax Return will be no more. A huge step forward for freelancers and other self-employed parents, no longer will we be required to fill in an annual return, simply upload accounts into a new digital system. Osborne even used the phrase ‘tax shouldn’t be taxing’ and the roll out of the new system should begin immediately, with 5 million small businesses and 10 million individuals planned to be moved to it by the beginning of 2016. Tax should become much simpler if the system works!
Support for Creative Industries
Work at home mums and dads who specialise in creative industries will be pleased to hear the government plan to further their support of the sector with an increase of film tax relief to 25% and a further extension of the high-end television tax relief. April 2015 will see the launch of a new children’s television tax relief and in April 2016 there will be a 26% orchestra tax relief. There are further capital boosts to the video game industry and the Skills Investment Fund.
No More Class 2 NICS
Although further information on this point is still needed Osborne stated that Class 2 National Insurance contributions for the self-employed will be abolished in the next government, with further consultations to be scheduled. This should represent a saving to all self-employed mums and dads.
Personal Allowance Increased
The personal tax allowance for all individuals, including those working from home, freelancing and self-employed will increase steadily. From April the tax-free personal allowance will be £10,600 and this will increase to £10,800 in 2016 and £11,000 in 2017, representing an increase in the amount that can be earned before paying income tax and therefore a slight increase in overall earnings for most people.
Perhaps because he had discussed or announced it previously, Osborne didn’t mention his soon to be launched childcare scheme. With the end of the childcare voucher on its way the government will soon be launching its Tax-Free Childcare Scheme. The scheme states that every 80p you pay in will be topped up by 20p from the government and kept in a tax-free childcare account to cover the cost of childcare.
There are plenty of high points in the 2015 Budget which suggest that self-employed parents and those with freelance careers should see some improvement in their income and their stress levels, if the new tax system is effective! There are still points which need clarifying but as they become clearer we’ll hopefully have a better picture of whether they’re going to make a genuine difference for WAHMs.