2012 Chancellors Autumn Statement – Principal Changes Other Announcements

Individual Savings Account (ISAs)
From 6 April 2013 the overall limit is increased to £11,520 (2012-13 £11,280), of which £5,760 can be invested in cash (2012-13 £5,640).
The junior ISA is increased to £3,720 (2012-13 £3,600).
Fuel benefit charge
From 6 April 2013 the car fuel benefit multiplier is increased to £21,100 (2012-13 £20,200). This figure is used to tax company car users whose employers pay for their private petrol usage. The charge can be legitimately avoided if the employee reimburses the cost of private fuel used. The equivalent van fuel benefit charge is increased from the same date to £564 (2012-13 £550).

Reducing tax credit error, fraud and debt
A number of initiatives have been announced aimed at reducing the levels of tax credit error and fraud and recovering tax credit debt. They include:

  • Requiring claimants to provide more evidence to support certain claims for tax credits for children and childcare.
  • Trialling the use of debt collection agencies to collect tax credit debt.
  • The announcement of legislative changes to enable the collection of existing tax credit debt from a new tax credit award.

Recovering debt
New initiatives aimed at recovering debt owed to central government include:

  • Trials and pilots with the Department of Work & Pensions and Debt Collection Agencies.
  • An increase to HMRC’s debt management resource for the rest of this year and for 2013-14.

Digital services
Over the next three years, HMRC will significantly expand the range of digital services to include:

  • 20 million taxpayers receiving a Personal Tax Statement, showing how their tax is calculated and spent by government, and
  • A more joined-up digital experience for taxpayers providing an overview of their HMRC ‘account’. This will include: links to all their online transactions, a facility for accessing tailored help and asking HMRC questions.

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