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What does the Autumn Statement 2015 mean for you?

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THE SINGLE PARENT

CATHERINE GANNON, MANAGING PARTNER OF GANNONS LAW FIRM

Gannons Commercial Law continues to perform extremely well as profits and earnings increased on last year. She is commercially savvy and has restructured the business from an LLP to a Limited Company due to the recent legislation covering LLPs. This illustrates that Catherine is no doubt a smart operator in a segmented legal market place. Catherine lives with two children, aged 12 and 14, in a home with a mortgage and holds several investment properties.

BDO’S AUTUMN STATEMENT TEAM SAYS:

Catherine is likely to be affected by the implementation of an additional three per cent stamp duty land tax (SDLT) charge for the purchase of second homes and buy-to-let investments. For example, on a £300,000 property investment her SDLT liability would increase from £4,000 to £13,000. From a corporate perspective, her firm should benefit from its restructure follow ing confirmation by the chancellor that the rate of corporation tax in the UK will drop to 18 per cent in 2019-20. The company would not be negatively affect – ed by the Apprentice Levy provided that the company’s payroll bill does not exceed £3m.

THE APPRENTICE LIVING AT HOME

JACK CRANE, HIGHER APPRENTICE, PWC

Jack lives with his parents outside of London, so spends a significant amount of money – £7,000 per year – on travel to work, through a work season ticket loan scheme. His salary is £25,000 and he tries to save around £150 a month in a regular savings account (no ISA). Jack also puts around £150 per month into his pension, while PwC adds about £230 through a salary sacrifice scheme. When he’s not working at PwC, Jack likes to hit London’s bar scene without hitting his wallet too hard, spending around £200 per month on eating and drinking out. He is interested in looking at higher interest savings accounts of perhaps even a help-to-buy ISA as his salary rises over the next year or two, and might get himself a car through a company lease scheme.

BDO’S AUTUMN STATEMENT TEAM SAYS:

As Jack is looking at saving for a house he should be able to benefit from the help-to-buy ISA, available from 1 December, in order to raise a five per cent deposit. This can be used in conjunction with the new London help-to-buy scheme which offers an interest-free loan of 40 per cent of the property value. Jack should also benefit from the new rules being implemented regarding the ability to claim compensation on rail season tickets for train journeys delayed by in excess of 15 minutes.

THE ENTREPRENEUR

GONCALO DE VASCONCELOS, FOUNDER AND CEO, SYNDICATEROOM

Goncalo, 35, has been in the early-stage finance industry for four years and chief exec of equity crowdfunding platform SyndicateRoom for three. He doesn’t take a pension and, judging by his early morning starts to fit two hours of tennis in before work, isn’t planning to slow down. He rents a house in Cambridge with his wife. He has passion for sailing, and hopes to travel the world with his wife one day. SyndicateRoom has had a success – ful year, and was has been named best investment platform at the Prestigious Growth Investment Awards.

BDO’S AUTUMN STATEMENT TEAM SAYS:

With the introduction of the Apprentice Levy, SyndicateRoom may wish to take advantage of the additional funding raised and take on an apprentice. They should not incur the 0.5 per cent charge, but can still benefit from the funding available for apprentices. In addition, a rise in the Employment Allowance from £2,000 to £3,000 will also be a welcome relief as this is deduction of £3,000 from the company’s national insurance contribution liability. The announcement of an additional 29 per cent funding to UK sport may also benefit Goncalo, with potentially improved sporting facilities available for his tennis and sailing.

THE FAMILY MAN

MARTIN WINTER, PARTNER, TAYLOR WESSING

Martin, 61 has a love for waterskiing shared by his son Freddie, 25. Freddie takes his MBA finals next week at the US university where he is on a waterski scholarship. Freddie won the bronze medal in slalom in the world waterskiing championships just last weekend in Chappala, Mexico. Martin and his wife Hilary own their Wandsworth home outright. Martin mainly uses his car at weekends, and flies for business. Taylor Wessing’s profits per equity partner this year were £767,000. Martin’s daughter works in marketing.

BDO’S AUTUMN STATEMENT TEAM SAYS:

Martin owns his own home and may be impacted by the new powers given to councils to increase Council Tax by two per cent. The raised funds will be put towards social care funding, however it could be quite an increase for the higher-banded property owners. New measures to prevent the right to claim for minor whiplash injuries will be enforced and therefore car insurance premiums are set to fall, so Martin should save between £40 and £50 on his insurance premiums. Both Martin and Freddie could benefit from the increased funding in to UK sport, improving facilities and helping to create opportunities to achieve sporting excellence.

THE STARTUP FOUNDER

OLIVER PUGH, FOUNDER OF SNACK BOX SERVICE EARLYBIRD

Oliver’s business is less than a year old. It has attracted £300,000 worth of investment via the crowdfunding platform Crowdcube, bringing EarlyBird’s total equity investment since starting out last autumn to £600,000. This includes an earlier fund on Crowdcube and a private round of investment, worth £170,000. It is valued at £1.5m, and currently makes a five per cent gross profit on each product sold, which the company forecasts will rise to 37 per cent in the next year as production increases. He currently employs six people and will look to grow this over the next 12 months. Oliver lives with his girlfriend in a rented flat in London. He drinks socially, but does not smoke. His savings have all been invested in EarlyBird, and from January 2015 Oliver will take a salary of £24,000 with no pension.

BDO’S AUTUMN STATEMENT TEAM SAYS:

EarlyBird will benefit from the confirmed fall in corporation tax to 18 per cent by 2020 and the increase in the employment allowance to £3,000. EarlyBird should fall within the £15,000 exemption of the Apprentice Levy and not have to pay the charge when it is introduced in April 2017. However, it may wish to benefit from the levy funds raised by taking on an apprentice. Oliver may wish to take advantage of the London help-to-buy scheme, where only a five per cent deposit is needed and he could secure an interest free loan of 40 per cent of the property value.