Alistair Darling’s Pre-Budget has come and gone. On the whole it was pretty boring. Many proposals will only apply after the next election so they may not even become law.
Eyes down for a full house as bingo duty has reduced from 22% to 20%, but apart from that there was little good news introduced. Bonuses for bankers will be taxed on the banks as well as the banker but for only a year. I think it will generate little, if any, revenue.
Avoiding deep comment, the other main proposals are:
- An additional tax on jobs as there is a 1% increase in the National Insurance rates payable by employers, employees and the self-employed from April 2011. This is after the next election
- Freezing the personal allowances and tax bands at the 2009/10 amounts for most taxpayers
- The introduction of a 50% additional rate of tax for those with the highest income levels from 6 April 2010
- Changes to the pension tax relief for people earning more than £150,000
- Deferral for a year of the proposed increase in the rate of Corporation Tax for small companies. It will stay at 21% for another year
- The VAT rate reverts to 17.5% from 1 January 2010
- There are changes to the VAT Flat Rate scheme
- State Pension to increase by 2.5% from April
- An introduction of a boiler scrappage scheme
- No changes to the tax on Employee Benefit Trusts
- The beneficial tax rules for renting holiday accommodation are abolished from 6 April 2010
- Changes to company car tax (yet again!) from 6 April 2012 but tax breaks introduced for electric cars and vans
- Extra tax to pay if your employer gives you free fuel in addition to a company car from 6 April 2010
Please feel free to contact me if you would like more information about the proposals.