The Budget 2014 – encouraging saving and investment By Richard T Lishman, Managing Director of money4dentists

This years’ budget was very positive, with many factors that give the general population more money in their pockets. It encourages saving and investment and includes some much needed pension changes. But how might it affect the dental profession?

For a start the personal allowance changes have raised the threshold for having to pay tax to £10,500, and will generate a saving of around £800 per year. This will be beneficial to every taxpaying earner regardless of their profession.

From 1^st July Stocks and Shares and Cash ISAs will be merged into a single New ISA with a tax-free savings limit of £15,000. For dentists who are self-employed and put money into an account every month to pay for their January and July tax liability, £15,000 tax free growth each year will be quite appealing.

A significant number of dentists invest into Premium Bonds and they are becoming an even more popular method of saving, as there is always that chance of winning the £1m prize, whilst your stake is guaranteed! The current maximum of £30,000 will be increased to £40,000 in June and then next year will rise to £50,000, with the number of £1m winners being doubled every month.

For those looking forward to retirement there will be a new Pensioner Bond for anyone 65 or over. This will pay a market-leading rate from January, with rates from 2.8% for a 1 year Bond to 4% for a 3 year Bond.

Further to this is the removal of the requirement to buy an Annuity, as well as changes to the tax on any lump sum taken on retirement. These changes give dentists more options as previously restricted pension money can be accessed, allowing for the purchase of additional practices or Buy To Let properties, which will help provide an income for their future.

Other advantageous changes to be aware of would include the doubling of the Annual Investment Allowance from £250,000 to £500,000 and its extension to the end of 2015, the fuel duty rise that was planned for September will be cancelled, £200m will be made available for fixing potholes across the country saving us those uncomfortable jolts and £140m extra on flood defence repairs.   

The affects of the Budget 2014 will be felt in homes and businesses across the county. To find out how it will affect dentistry in particular contact the experts at money4dentists today.  

For more information please call 0845 345 5060, email This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.money4dentists.com