George Osborne presented his first Budget on Tuesday 22 June 2010.
For the first time, forecasts were published in advance of the Budget. The Office for Budget
Responsibility was formed in May 2010 to make an independent assessment of the public
finances and the economy in advance of each Budget and Pre-Budget Report.
Within the framework of these forecasts George Osborne stated that a tough but fair
Budget was needed. Many fundamental announcements have been made which affect the
taxation of most individuals. These are in addition to changes already made by the previous
government, such as the 50% tax rate and changes to the tax relief available for pension
contributions.
Our summary focuses on the issues likely to affect you, your family and your business. To
help you decipher what was said we have included our own comments.
For a full PDF version of the newsletter click here Budget June 2010 Newsletter
This briefing provides a practical summary of recent developments affecting employers including where relevant the related tax considerations. Including New PAYE penalties and filing online.
Click her for a PDF version of Essential update for employers
Our Spring 2010 newsletter including:
Capital losses
PAYE penalties for late payment
The provision of a phone for business
Facilitating Funding
The tax treatment of Furnished Holiday Lettings (FHL) has been advantageous for many years but the rules are set to end in April 2010.
Salary sacrifice
Download a PDF version of Spring 2010 newsletter
This briefing is intended for both unincorporated and incorporated business clients.
It focuses on some key direct tax areas affecting the owner managed business so that essential
opportunities to maximise tax savings or minimise liabilities are not overlooked. Areas covered include
capital allowances, extraction of profits and employment taxation. It includes the more important year end
tax tips to help identify the areas that should be considered shortly before both the end of an accounts
period and/or tax year.
Click to down load PDF version of Practical Tax Tips for the owner managed business
HMRC cut the rate of interest on underpaid Income tax, NIC, CGT, Stamp duty and certain other taxes from 3.5% to 2.5% as of 23 March. For underpaid corporation tax the rate was reduced from 2.5% to 2% as of 16 February and from 2% to 1.5% from 16 March
The rate of interest on overpaid Income Tax, NIC, CGT, stamp duty and certain other taxes remains unchanged at 0%. For overpaid and early paid corporation tax, the rate fell from 1.25% to 0.75% as of 16 February and from 0.75% to 0.25% as of 16 March.
The new tax rate bandwidths are as follows:
- Basic Rate (currently 20%) on all taxable income from £1 to £37400
- Higher rate (currently 40%) on all taxable income over £37400
- The income tax personal allowance has increased from £6035 to £6475 for 2009/2010.
Please note employee & employer national insurance is payable on income over £5715.
As from 6th April 2009 all L suffix tax codes should be increased by 44 points to 647L.
If you’re worried about being able to meet tax, National Insurance, VAT or other payments owed to HM Revenue & Customs (HMRC), or you anticipate that payments coming due will cause you problems, you can call the Business Payment Support Line below seven days a week. They will review your circumstances and discuss temporary options tailored to your business needs, such as arranging for you to make payments over a longer period.
Tel 0845 302 1435
http://www.hmrc.gov.uk/pbr2008/business-payment.htm
The old A5 version of the P45 form will no longer be valid as from 6 April.
It is being superseded by the new A4 version which was first introduced in October last year.
The new P45 includes details of the employee’s date of birth and their gender.
HM Revenue and Customs (HMRC) said that any back stock of the A5 P45s should be destroyed by 6 April and that employers must use the larger format instead.