News
50% TAX IMPLICATIONS:
As of the 6th April 2010 the new 50% tax rate came into force, which applies to all income over £150,000. A less publicised change to the tax regime however, is that your personal allowance will reduce if your personal income is greater than £100,000 - and will reduce by £1 for every £2 of income above the limt, so that once you earn over £113,000 you have no personal allowance, pushing a proportion of your tax bill above a whopping 60%.
If you are currently earning this level of income, we would highly recommend reviewing your current tax and remuneration planning to see if it might be possible to mitigate your exposure to the new legislation.
If you would like to know more, call Andy Franklin on 020 8871 3047.
REVENUE FINES INCREASE:
Over the last few years, the Inland Revenue has become even more agressive in terms of using punitive fines and penalties on both late payments of tax, and also late filing of returns. Fines on late filing and payment of VAT can be as much as 15% of the liability, and unless there is an extremely compelling reason to mitigate this, once levied they rarely rescind them. From 6th April 2010 this now also applies to PAYE/NI returns, making it even more important to file and pay your monthly PAYE paying in slips on time.
For more details from the revenue website, click here
FIRST COALITION BUDGET DATE SET:
George Osbourne will present his first budget on the 22nd June 2010, less than 6 weeks after taking power.
It is widely expected it will contain some tax increases, with VAT being currently being touted as the most likely, possibly rising from 17.5% to 20%, and Capital Gains tax, which may go up from the current rate of 18% up to a potential 40%.
If you would like to receive an in-depth analysis into how the budget will affect you, click here to receive our post-budget newsletter.
