Express Accountancy
Budget 22nd April 2009

• Overview - This economy is expected to shrink by 3.5% this year, but growth of 1.5% is forecast for next year!
  Small Company tax is scheduled to be increased to 22% from April 2010..
  
  
• Corporation Tax for Small Companies - Rate to increase to 22% April 2010 (from 19% in 2006). 
  Businesses losses will be able to be carried back 3 years (currently one year).
  
  
• Capital Allowances for Small Companies - Increased to 100% for up to £50,000 per year of expenditure from April 2008 .
  

• Personal Tax - New higher rate of tax at 50% for those earning over £150,000 from April 2010.
  Personal Allowances restricted for those earning over £100,000 and removed completely for people earning over £112,500.
  Personal Allowances increased to £6,035 in 2009/10 (£116 per week) and £6,435 in 2010/11 (£123 per week).
  Higher rates tax kicks in once total earnings reach £43,435 in 2009/10.
  
  
• National Insurance - Increase for both employee and employer contributions by .5% from April 2009 - now total 23.80% of wages.
  National Insurance threshold is £105 per week (£5,460 per year) from April 2009, which is lower than the personal allowance.
  
  
• Capital Gains Tax - Threshold increased to £10,100 for 2009/10.
  Gains over the threshold are taxable at a flat rate of 18%.
  
  
• Inheritance Tax - Threshold raised to £325,000.
  
  
• VAT Threshold & Rate - Vat rate returns of 17.5% on 31st December 2009.  Vat registration threshold increased to £68,000 from 1st May 2009.
  
  
• Stamp Duty - Starting Threshold still £125,000, but, as a short term measure will not be charged on purchases under £175,000 until the end of 2009.
  
  
• Self Employed National Insurance - Class II National Insurance raised to £2.40 per week (2009/10).
  
  
• Computers at Home - Computers provided by a business for home use will be subject to benefits in kind.
  
  
• ISA Limits - Increased to £10,200 per year from 2010/11 (2009/10 for those over 50).
  
  
• Business Rates - Abolished for empty commercial properties with a rateable value of under £15,000.
  
  
• Minimum Wage - Adult Rate raised to £5.73 from 1st October 2008.
  
  
• Car Scrapping Scheme - £2,000 incentive to trade in cars over 10 years old against a brand new car, £1,000 paid by the car companies, £1,000 paid by government.
  You must have owned the old car for at least 12 months.