The Budget has passed and, as usual, the devil was in the detail. Budget speeches tend to be fairly uninspiring affairs but all the background documents are usually more enlightening. To save you having to trawl through hundreds of pages of government and HMRC press releases, our summary, in the Data Centre, of the main changes will quickly bring you up to speed and hopefully be a lighter read.
Budget announcements contain many fundamental taxation changes which will affect business and personal lives for the year to come. Written in plain English, we have broken the summary down into the main areas of taxation, including business and corporate, employment, personal and capital. We have also included comments on the more important changes, together with any planning points that may arise.
In addition to our Budget Summary 2009 the Data Centre includes a summary of the Budget changes to the tax rates and allowances. Many of the figures are fundamental to our business and personal lives and the main ones are summarised in the Data Centre, as Tax Rates 2009/10. 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 employers
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. Tax Rates 2009/10 highlights the main allowances that are available.
If you sell an asset such as land, capital gains and stamp duty land tax may be due. Tax Rates 2009/10 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 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 – Tax Rates 2009/10 explains how these are computed to help you 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. Tax Rates 2009/10 highlights the rates.
Rates that affect us all
Long term planning for a comfortable retirement can never start too early. Tax Rates 2009/10 explains how much can be contributed to an approved pension scheme each year tax efficiently.
And finally, in the words of Benjamin Franklin, nothing in life is certain, other than death and taxes. Tax Rates 2009/10 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!
Tax Rates 2009/10 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.
We hope the Budget Summary 2009 and Tax Rates 2009/10 will provide an invaluable update for you and help you get to grips with the changes. Despite HMRC contending that ‘tax doesn’t have to be taxing’; recent years have seen many changes to the tax system. We are here to help you navigate and plan your way through the tax maze so please get in touch if you have any questions.
Simon Towers
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