Keith Wood Associates

As everyone will have noticed we have changed government recently and the new Chancellor of the Exchequer George Osbourne has announced 22 June as his first Budget – 2010 Budget Mark Two.
The actual content of the 2010 Budget Mark Two will provide plenty of scope for speculation, with some of the expected measures being:

• VAT will go up to 20% – it is fast and would raise lots of money. At the Treasury press conference, prime minister David Cameron said it was “not something we plan to do” but added that taxpayers would have to “wait for the first Budget” to find out if it would happen
• The main rate of Corporation Tax will be cut, possibly with the abolition of the small companies’ rate and of the annual investment allowance to pay for it. This will impact significantly on small businesses as the Corporation Tax rate could rise to 25%.
• Increase in the rate of CGT on non-business assets – possibly from the day of the Budget to 50% from the current 18%
• Employees’ National Insurance Contributions (NIC) will go up, but not employers’ NIC
• The personal income tax allowance will increase in the general direction of £10,000 but it is anticipated that it will take several years (probably five years) to reach this level
• The increase in the Inheritance Tax Rate nil-rate band won’t happen

The new Government has inherited a large budget deficit and will need to reduce this significantly over the life of the parliament. As a result tax payers will potentially face higher tax bills. Tax payers and small business owners will need to review their current tax position and take advantage where possible of tax reliefs still available and look to reduce costs within the business and maximise productivity. We provide a full service reviewing yours and your business’ tax affairs advising of favourable elections and assisting in avoiding potential pitfalls. For small businesses we recommend a sound accounting system providing an up to date statement of the profitability and cashflow of the business and an on-going estimate of potential tax liabilities, nobody likes nasty surprises in January. If you would like to speak to us for a free initial consultation and review, please contact us on 01449 798285 or email on info@keithwoodassociates.com