Topical Topics
Budget Headlines
The Annual Investment Allowance was doubled to £100,000 from April 2010. Most businesses can claim 100% tax relief on investment in qualifying plant and machinery (excluding motor cars) up to this limit.
Entrepreneurs
Relief for Capital Gains Tax was doubled to £2 million from 6 April 2010.
A new 50% tax
rate on income above £150,000 has been introduced and personal income tax
allowances are reduced if income exceeds £100,000, personal income tax
allowances and Income Tax rate bands otherwise remain the same in 2010/2011 as
they were in 2009/2010. The rate of Capital
Gains Tax remains at 18%. The small
companies rate of Corporation Tax remains at 21% but will increase to 22% from
1 April 2011. The full rate of
Corporation Tax remains unchanged at 28%.
The annual
subscription limit to Individual Savings Accounts is increased to £10,200 of
which £5,100 can be in cash from 6 April 2010.
The limit is to be increased in line with the Retail Prices Index on an
annual basis from 6 April 2011.
Value Added Tax
The Standard
Rate of Value Added Tax increased to 17.5% once again on 1 January 2010. From 1 April 2010 if business turnover
exceeds £100,000 per annum or for new VAT registrations after that date VAT returns
will have to be submitted online and any VAT due paid electronically. Contact us to discover how we can help with
online submission.
Incorporation
There are still tax savings that can be achieved through incorporation. On annual profits of £15,000 a tax saving of up to £623 could be obtained and on annual profits of £40,000 the saving could be as much as £2,373 (based on 2009/2010 tax rates).
Contact us and discover how incorporation might benefit you.
Company Accounts
Filing Deadlines
For companies with accounting periods commencing on or after 6 April 2008 the delivery time for accounts at Companies House has been reduced by one month. Private companies have reduced from 10 months to 9 months and public companies from 7 months to 6 months.
Full calendar months for filing periods have also been introduced. Where the accounting period ends on a month end, the accounts filling period will end on a month end, except for the first accounting period.
