George Osborne recently delivered his second budget which included limited but welcome good news such as the increase in personal allowance and a reduction in fuel duty.
Personal allowances
Personal allowance will increase to £7,475 from April 2011 and from 6 April 2012 the personal allowance will rise to £8105 (Although inflation will eroded any real benefit of the rise).
Small business summary
The Chancellor put forward various measures for business across a wide number of issues.
• Entrepreneurs’’ Relief l lifetime limit doubles from 6 April 2011 to £10 million.
• Corporation tax on small businesses, those with profits of less than £300,000 will pay corporation tax at 20%
• Capital allowances – the changes to the rates proposed in June 2010 remain unaltered and from April 2012 the Annual Investment Allowance will be reduced to £25,000 and that the rates of writing down allowance on man pool assets will reduce from 20% to 10%.
• Business Rates – small business rate relief scheme has been extended for an additional year to 30 September 2011. The scheme provides eligible small business ratepayers with small business rate relief at 100 per cent on properties up to £6,000 rateable value in 2010, (rather than the previous rate of 50 per cent), and a tapering relief from 100 per cent to 0 per cent for properties up to £12,000 in rateable value.
• Business motoring in privately owned car – the amount an employee can be reimbursed tax free for business journeys has increased from 40p to 45p per mile for the first 10,000 miles, the rate of 25p per mile for mileage in excess of 10,000 remains the same.
VAT
The VAT thresholds for both registering and deregistering have increased from 1 April 2011 to £73,000 and £71,000 respectively. HMRC Time to pay scheme remains HMRC has confirmed through the Budget announcements that the time to pay scheme will remain available and that the
This Post Has 0 Comments