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UK will be fastest growing western economy by 2014, says report

04 - 11 - 2013

The UK is primed to grow faster than any other Western economy, according to a recent report.

The UK Business Confidence Monitor, conducted by Grant Thornton and The Institute of Chartered Accountants in England and Wales (ICAEW), predicts economic growth of 1.3% in the final quarter of 2014, as business confidence reaches a 10-year high.

The news follows a preliminary report from the Office for National Statistics (ONS), which estimates that the economy grew by 0.8 per cent in the three months to the end of September.

The monitor also registered the longest sustained period of rising optimism in the 10 years it has been running.

Signs of rising business confidence have been identified, with the Confederation of British Industry (CBI) reporting that the UK economy was recovering at a ‘slow and steady’ pace.

Both business and consumer sectors are experiencing recovery, according the ICAEW/Grant Thornton report.

The study found that companies are predicting growth in exports and business investment next year.

The survey of 1,000 accountants is one of a leading barometer of how the economy is expected to perform.

Recovery ‘well underway’

Chief executive of the ICAEW, Michael Izza, says: ‘This quarter’s report shows that the UK economic recovery is well underway.’

‘If it continues at this rate, the UK economy will be one of the fastest growing economies in the western world going into 2014.’

The CBI forecasts growth of 1.4 per cent this year, an increase of 0.2 per cent in August, after a strong third quarter.

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Fixed Data

Assumptions

General                                                                                                                              

• The user is over 21 and subject to tax in the UK
• The user wishes to minimise their tax liability
• The user is subject to national insurance i.e.he/she is not over retirement age
• Only current tax rates and limits are applied
• No tax mitigation payments are made e.g. pension contributions
• Only 3 digit letter 'L' tax codes shown in the drop down list can be entered 
• The user does not have a turnover greater than £100,000 where fewer reliefs and or higher taxes may apply

Expenses

• All miles claimed as expenses are for business use using a personally owned car or van
• All other expenses claimed are wholly, necessarily and where appropriate exclusively for the benefit of the business

Foremans LLP Charges

• Foremans fees associated with Limited Company, Sole Trader or Umbrella are as per published rates
• Foremans current Service Costs are allowed for in all calculations.

Holiday Pay

• Holiday pay is accumulated week by week by Umbrella or Agency employer but paid out during the year

VAT

• Limited Company or Sole Trader will be VAT registered
• Limited Company or Sole Trader will take advantage of Flat rate VAT
• Flat rate applied includes the benefit of the additional 1% applicable to the first year of VAT registration

Limited Company Conditions

• One director / one shareholder in a Personal Service Company
• Director of Personal Service Company elects to vote for 100% dividend after salary, costs and expenses
• Director's salary is maximum salary to the primary threshold for NI
• The Limited Company is trading normally i.e it is not subject to IR35 and is not a Managed Service Company

NOTES

• The Current tax rates are taken from the Fixed Data Table
• The current Value Added Tax Rate is 20% and is applied to all invoices and expenses as appropriate
• The Director's Salary is fixed in relation to National Insurance thresholds. Higher Rate Taxpayers should consider the advantages and disadvantages of a larger annual salary or bonus
• Higher Rate Taxpayers may wish to consider the advantages and disadvantages of shared ownership of their business
• Users with a tax code other than three digits and letter "L" may telephone or email our Development Department to request a detailed calculation
• Generally the use of an Umbrella rather than an Agency payroll is only efficient if sufficient weekly expenses are allowable and claimed
• The expenses claimed under an Umbrella should not prevent the proper operation of National Minimum Wage