Budget Update

[THEPUMA]

CT rate for small companies reducing to 20%.

[THEPUMA]

VAT up to 20%.

[THEPUMA]

Headline rate of CGT up to 28%.

Entrepreneurs' relief left intact so effective rate still 10%.

Personal allowance up by £1K for basic rate taxpayers.

[rawly]

VAT up to 20%.

It would be good if the Flat Rates stayed the same IN aasociation with CT falling to 20% that's a bit of a gain!!!!

However, I fear not!

[Clare@InTouch]

Reduction in capital allowances from 20% to 18% - and reduction in annual investment allowance to £25,000.

[Fred Bloggs]

A good budget for contractors?

[Dearnla]

So the increase in Personal Tax allowance will save you £170, but as soon as you spend over £8k on VAT-able goods/services that gets swallowed by the new rate.

CGT reduction probably gives me an extra £700, so add that to the savings on personal tax means that I have an extra £870 disposable income. As long as I don't spend more than approx £40k on VAT-able things, I'm (a very few) quids in.

Just about tax-neutral for me.....

[THEPUMA]

Flat rate for IT contractors up to 14.5% from 13%. So someone billing £100K + VAT will pay make an additional profit per annum of £375, before taking account of any additional input VAT they might pay.

PUMA

[dx4100]

A good budget for contractors?

Defo....

Only mention of IR35 is

2.74 The Government remains committed to a review of IR35 and small business tax and will release further details shortly.

What we already knew....

[Wanderer]

Only mention of IR35 is 2.74 The Government remains committed to a review of IR35 and small business tax and will release further details shortly.

Looks like we have a stay of execution here.

But as a result of the IR35 review, we will pay LESS tax? I don't think so.