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click
here
to access our tax data information page
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Budget and
Pre Budget reports |
| Main items
of interest to the majority of small businesses will
be: |
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Personal allowances and national insurance rates, please follow tax data information link
above. |
| - Personal
Allowance for individuals under 65 to increase by
£1,000 to £7,475 in 2011/12 and to £8,105 in
2012/13. |
| - Higher
rate tax band reduced to £35,000 in 2011/12 and to
£34,370 in 2012/13. |
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Small company corporation tax rate to reduce
to 20% from April 2011, the main rate is to
reduce to 26% from April 2011 then a further 1% each year through to 23% in April
2014. |
| - The
trading loss carry back rules are to be extended for
a further year,
for Corporation Tax accounts ending between 24/11/08
and 23/11/10 and Income Tax accounts ending in
2008/9 and 2009/10, by allowing the loss carry back to three
years. The amount to be carried back under the
provision is capped though at £50,000 . |
| - Annual investment allowance of £50,000 was
increased to £100,000 from April 2010 but is to
decrease to £25,000 from April 2012. |
| -
Capital Allowance writing down rates to reduce
to 18%/8% from April
2012. |
| - Capital
Allowance short life election disposal time limit
increased to 8 years from 4. |
| - VAT
registration limit increased to £73,000, from £70,000, from April
2011. |
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VAT increased to a rate of 20% from 4th
January 2011, plus resulting increase in
flat rate scheme rates. |
| - Support
for businesses struggling to meet future tax
liabilities or obtain finance remains in operation. |
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http://www.hmrc.gov.uk/pbr2008/business-payment.htm |
| - Class I
and Class IV NIC increased by 1% from April
2011. |
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Changes in tax credits announced. From April
2011 the income disregard will be reduced to
£10,000 from £25,000, tax credits
eligibility will now reduce for families
with over £40,000 household income from the
current £50,000 figure, plus the withdrawal
rate will increase to 41%. |
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Mileage allowance increased to 45p per mile for
the first 10,000 business miles in a tax
year, then 25p per mile thereafter from
April 2011. Passenger allowance of 5p per
mile per employee remains but will also now
cover volunteers. |
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Child benefit to be removed from families
with a higher rate taxpayer from January
2013. |
| -
Lower Inheritance Tax rate of 36% from April
2012 for estates giving at least 10% of
their estate to charity. |
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New Furnished Holiday Lettings rules
from April 2011 restricting the use of
losses, plus qualifying days to increase
from April 2012. |
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Regional Employer NIC's holiday for new
businesses starting after 22nd June 2010, to
include the South West. |
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New CGT regime rules |
| From
6th April 2008 there was a
new main rate of CGT announced of 18%, plus Taper and
Indexation relief has been abolished. This
rate may increase to 28% on gains after 22nd
June 2010 dependant on income. A
new entrepreneurs relief to reduce
the rate to 10% for the first £1
million of lifetime gains on the sale of all
or part of a business was
introduced, this was increased to
£2 million from April 2010, to £5 million
from 22nd June 2010 and £10 million from
April 2011. The relief is subject to many
exclusions and careful planning is required. HMRC guidance below: |
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http://www.hmrc.gov.uk/cgt/index.htm#1 |
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CIS scheme update |
| The new CIS
scheme, in operation since April 2007,
contains many penalties and risks to Contractors.
For more information on how the scheme works, click on the link below for HM Revenue
Customs guidance but preferably please contact us
for a more detailed explanation. Beware of H M Revenue interpretation on self employed
status, it is not law and incorrect, there have been
many tax cases on this issue in the last couple of
years which detail the current law. Also, care must
be taken to ensure gross payment status is not lost
through late payments of tax. |
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http://www.hmrc.gov.uk/cis/ |
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New HMRC penalty changes |
| A new
penalty regime has been introduced from 1st April
2009 and we recommend a look at the HMRC website
link below. |
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http://www.hmrc.gov.uk/about/new-penalties/index.htm |
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Compulsory VAT online filing |
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From 1st April 2010,
businesses with an annual
turnover of over £100,000
and all newly registered VAT
businesses will be required
to file their VAT returns
online and make payments
electronically. It is now
proposed that all businesses
file online from April 2012. |
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http://www.hmrc.gov.uk/vat/vat-online/moving.htm |
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Information: |
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Budget and Pre Budget reports.
New Capital Gains tax
rules.
CIS scheme.
New HMRC penalty
changes.
Compulsory VAT
online filing from April 2010.
More Info
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