| VAT |
The current rate of 15% reverts back to 17½% on 1 January 2010.
Changes to rates used under the flat rate scheme have been announced.
|
|
| INCOME TAX |
Personal allowances are all frozen for 2010/11 (£6,475 for anyone under 65).
The threshold where individuals start paying higher rate tax of 40% is to be frozen for 2010/11 at £37,400.
There is a new additional rate of 50% for income over £150,000.
|
|
| NATIONAL INSURANCE |
All rates of National Insurance will increase by an additional 0.5% (1% in total) in 2011/12. For example:
| Employees Class 1 rate |
11% |
to |
12% |
| Over Upper Earning Limited |
1% |
to |
2% |
| Employers |
12.8% |
to |
13.8% |
| Self-employed Class 4 |
8% |
to |
9% |
| Self-employed Over Upper Limit |
1% |
to |
2% |
|
|
| CORPORATION TAX |
The small companies rate increase has been deferred to 2011/12 so rate remains 21%.
|
|
| COMPANY CAR TAX |
The figure used for calculating the benefit of private fuel for a
company car increased from £16,900 to £18,000 for 2010/11.
For company van this figure rises from £500 to £550.
|
|
| INHERITANCE TAX |
The individual tax allowance is to be frozen for 2010/11 at
£325,000 (it had previously been announced that it would
rise to £350,000).
|
|
| FURNISHED HOLIDAY LETTINGS |
The rules for these will be withdrawn from 2010/11. The rules become
similar to those for all other properties.
|
|
|
For further information please contact:
|
| Hugh Davies |
hugh@hugh-davies.co.uk |
| Ian Sheekey |
ian@hugh-davies.co.uk |
| Telephone |
01722 336647 |
|
| Click here for a pdf version of this pre-budget-report |
|
