Piggybank News

April 27, 2009

How will the Budget affect your business?

Filed under: Business Advice — nspresources @ 3:58 pm
Tags: , , , ,

budget-briefcaseThe Chancellor gave his Budget Report on 22 April 2009

Below are Piggy’s highlights for small business owners…..

The Business Payment Support Service which helps businesses that are having difficulty due to the existing economic conditions, has been extended with regard to corporation and income tax.

This number of small businesses who can return a simplified Three Line Tax Return has been increased. The Limit is being increased from the current amount of £30,000 for trading or self employment income and £15,000 for property income to permanently align it with the VAT registration threshold of £68,000 from the tax year 2009/10.

There is a new temporary rate of 40 per cent for capital allowances – first year allowance for expenditure on general plant and machinery.

The loss carry-back rules, which were extended in the Pre-Budget Report in November 2008, are to be extended for a further year for both limited companies and the self-employed.

VAT changes to modernise cross-border trading will be introduced over a three-year period from 1 January 2010.

The standard VAT rate will return to 17.5 per cent from 1 January 2010.

Corporation Tax rates for the financial year 2010-11 will remain unchanged with the main rate at 28 per cent and for the financial year 2009-10 the small companies rate will be 21 per cent.

Business owners who have earnings in excess of £150,000 (or employees in this wage bracket) will also need to be aware that there are changes to both the additional tax rate and the tax relief on pension contributions.

Read the report and further information on the HM Treasury website – Opens in a new window.


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