Here are the significant headlines from the Chancellor George Osborne’s 2014 Budget and how they affect you.

The personal allowance will be raised from £10,000 to £10,500

Although workers will see a minor improvement in their take home pay as a result of the personal allowance being adjusted, it is unlikely that this amount will be enough to compensate for the increases in household bills.

40% income tax threshold will rise to £42,285 in April 2015.

Those earning over £42,000 will feel the biggest impact from the changes. From next month they will become higher rate tax payers; required to declare all extra income including savings interest, share dividends or overtime – and pay 40% tax on this!

“Pay first, trial later”

Anyone accused of using a tax avoidance scheme and planning to appeal will have to pay the tax deficit upfront whilst appealing rather than later. This is projected to bring HMRC over £4bn in revenue.

Tax avoidance crackdown

In addition to the “pay first, trial later” scheme, HMRC’s powers have been further increased to the point that they can now retrieve tax payments directly from bank accounts of those who can afford to pay it but have not.

Have you taken part in a tax avoidance scheme?

Although tax avoidance is a legal structuring of tax affairs, if HMRC discover an ‘aggressive’ tax avoidance scheme they will work to shut it down.

KinsellaTax staffs consists of ex-HM Inspector of Taxes and ex-HM Custom and Excise Officers, fully experienced in all types of HMRC tax investigations.

To discuss a tax avoidance enquiry today call 0800 471 4546, or click here to fill in a tax enquiry form.

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