PRE-BUDGET REPORT - DECEMBER 2009
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| VAT |
The current rate of 15% reverts back to 17½% on 1 January 2010. |
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Changes to rates used under the flat rate scheme have been announced. |
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| INCOME TAX |
Personal allowances are all frozen for 2010/11 (£6,475 for anyone under 65). |
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The threshold where individuals start paying higher rate tax of 40% is to be frozen for 2010/11 at £37,400. |
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There is a new additional rate of 50% for income over £150,000. |
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| NATIONAL INSURANCE |
All rates of National Insurance will increase by an additional 0.5% (1% in total) in 2011/12. |
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For example: |
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Employees Class 1 rate
Over Upper Earning Limited
Employers
Self-employed Class
Self-employed Over Upper Limit |
11% to 12%
1% to 2%
12.8% to 13.8%
4 8% to 9%
1% to 2% |
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| CORPORATION TAX |
The small companies rate increase has been deferred to 2011/12 so rate remains 21%. |
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| 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. |
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| 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). |
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| FURNISHED HOLIDAY LETTINGS |
The rules for these will be withdrawn from 2010/11. The rules become similar to those for all other properties. |
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| For further information please contact: |
| Hugh Davies: |
hugh@hugh-davies.co.uk |
| Ian Sheekey: |
ian@hugh-davies.co.uk |
| Telephone: |
01722 336647 |
version of the Report 
