Budget 2011

[Pondlife]

Forgive my ignorance, but whats the difference between Corp Tax @ 28% and the 21% that everyone quotes on here?!

Corp tax @ 28% = big business
Corp tax @ 21% = little business

HM Revenue & Customs: Corporation Tax rates

[SimonMac]

Corp tax @ 28% = big business
Corp tax @ 21% = little business

HM Revenue & Customs: Corporation Tax rates

So if my LtdCo earns less than £300k I only pay the little rate, which is in fact only 20% rather than 21% now?!

[centurian]

Very interesting that when he mentioned merging tax and NI - he said it would not be expanded to other income streams.

[MrRobin]

So if my LtdCo earns less than £300k I only pay the little rate, which is in fact only 20% rather than 21% now?!

Yes, it's currently 21%. Was due to go down to 20% in April, but looks like it will now go down to 19% in April

[SimonMac]

So it looks like the IR35 reforms was dodged for now with a "consultation", or did I miss something?

[Pondlife]

Very interesting that when he mentioned merging tax and NI - he said it would not be expanded to other income streams.

Also, the number of years this will take to implement may well put it around election time.

Press will have a field day with bigger tax numbers that the hard of thinking will see as a massive hike.

[SimonMac]

Yes, it's currently 21%. Was due to go down to 20% in April, but looks like it will now go down to 19% in April

Cheers!

So how would this work in reality? If my companies financial year from October to September, would this years be calculated at 21% because my tax year started before the 1st April 2011?

[MrRobin]

So it looks like the IR35 reforms was dodged for now with a "consultation", or did I miss something?

You haven't missed anything, but he's still talking...

[MrRobin]

Cheers!

So how would this work in reality? If my companies financial year from October to September, would this years be calculated at 21% because my tax year started before the 1st April 2011?

Hmm.. good question. Probably based on invoice date

[SimonMac]

You haven't missed anything, but he's still talking...

If he's confirmed he is goinging to consult the merging of Income Tax and NI Contributions, and IR35 was brought in to combat NI Avoidence I doubt he will come back to it later on in the budget