Other Tax Changes Ahead

Newsletter issue - June 2010.

The Coalition Programme for Government also contains a number of other proposed tax and law changes that may impact on you or your business if they come to pass.

The business-focused proposals include:

  • Review of the IR35 rules as part of a review of all small business taxation.
  • Refocus R&D tax credits on hi-tech companies, small firms and new businesses.
  • Review the taxation of furnished holiday lettings so UK businesses are not penalised.
  • Encourage farmers to convert existing buildings into affordable housing.
  • Increase the threshold from which employer’s NI is payable by £21 per week, to £6,812 a year from 6 April 2011. The employees’ NI thresholds will not rise, so employees and the self-employed will bear the full brunt of the 1% increase in all NI rates.
  • Provide those out of work with business mentors and start-up loans to help them start their own businesses.

The proposals affecting individuals include:

  • No reduction in the imposition of Inheritance Tax in the foreseeable future.
  • No reduction in Income Tax rates until the Budget deficit has been reduced.
  • Increase the personal allowance significantly from 6 April 2011, but reduce the benefit of this allowance for those with high incomes. The personal allowance is currently tapered away for those with total income over £100,000, so this threshold may be lowered.
  • Introduce a transferable married couples allowance, but only for basic rate taxpayers.
  • Review of the taxation of individuals who are not domiciled in the UK, but who have a connection to the UK so they have some UK tax obligations.
  • End Government funding of Child Trust Funds from 1 January 2011, and reduce the value of vouchers given for new-borns from 1 August 2010.
  • Reform the administration of Working and Child Tax Credits to reduce fraud and overpayments.
  • Reduce the penalty for living as a couple in the Working and Child Tax Credits system.
  • Review the effectiveness of raising the Stamp Duty threshold for first-time purchasers.
  • Remove the requirement to purchase a pension annuity at age 75.
  • Phase out the default retirement age of 65.
  • Bring forward the increase in the State Pension Age (SPA), which is the age from which you can draw the State Pension. This will be 66 years for men from 2016 and 66 years for women from 2020. The SPA has already increased beyond 60 for women, and is set to rise gradually to 68 for everyone by 2046.

We expect more detail on these proposals to be announced in the Budget on 22 June.

What our clients say about us...

  • "Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."

    ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT

  • "I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."

    Neil Price - Managing Director at Work Relief Charity Recruitment

  • "Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"

    Lee Westrap MBCS - Director - Bulldog IT Services

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Booth & Co  |   The Hermitage  |   15a Shenfield Road  |   Brentwood  |   Essex  |   CM15 8AG        Telephone: 01277 224666    |   Email: info@boothandco.co.uk