So now we’ve heard it – the first Budget speech of the new government. So what exactly did the Chancellor say and, more importantly, what did it actually mean?
Many of the figures are fundamental to our business and personal lives and the main ones are summarised in the new bulletin in our data centre Tax rates 2010/11. We are sure that you will find it a useful point of reference throughout the coming tax year and below we have listed just a few examples of how it can be used.
Rates for businesses
If you run a business, obtaining the right allowances on equipment that your business buys can affect the tax that your business has to pay each year. Our bulletin highlights the main allowances that are available, including rates available on business cars.
If you sell an asset such as land, capital gains and stamp duty land tax may be due. Our bulletin highlights the main rates so that you can consider the tax bill that may arise.
Rates for employees
An incorrect PAYE code will affect an employee’s net pay, so it is always worth checking that your PAYE code has the correct personal allowances reflected in it.
Benefits that employees’ receive from their job, like company cars and fuel, affect the tax that they pay – our bulletin explains how these are computed to help ensure that you are paying the correct amount of tax.
Travel is a daily part of business life. If you drive your own car on business, HMRC allow certain tax free mileage allowances to be paid. If you are paid less than these rates, you may be entitled to a tax refund. Our bulletin highlights the rates.
Rates that affect us all
Long term planning for a comfortable retirement can never start too early. Our bulletin explains how much can be contributed to an approved pension scheme each year tax efficiently.
And finally, in the words of Adam Smith, there is no art which one government sooner learns from another than that of draining money from the pockets of the people. Our bulletin contains the main inheritance tax rates and exemptions but early planning can mitigate these tremendously. For example, a bit of simple tax planning can often make a world of difference - getting the right Will in place could save your family £130,000!
Our bulletin is intended for use as a quick point of reference. Should you require any further information, have a simple question or require detailed advice we are only a phone call away.
SGC Towers
Director
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