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Emergency Budget - key points for contractors
Posted Jun 22, 2010
The main points from the Budget were already widely known prior to today's speech. George Osborne announced a raft of spending cuts across all "non protected" departments, as well as the widely expected increases in VAT and CGT rates. From first inspection of the Budget documentation, no extra details have been released on the proposed "review" of IR35.
The key announcements, which will be of most interest to contractors, are as follows:
- The main rate of Corporation Tax will be cut by 1% per year from 2011, until it reaches 24%
- The Small Companies' Tax Rate will be cut to 20% from 2011
- CGT for higher rate taxpayers will rise from 18% to 28% from midnight tonight
- The standard rate of VAT will be increased from 17.5% to 20% from 4th January 2011
- The Enterprise Finance Guarantee Scheme will be extended
- A bank levy will apply to larger financial institutions from January 2011
- No increases will be made to alcohol, tobacco and fuel duties
- The personal allowance will rise by £1000 from April 2011
- The higher rate income tax threshold will be frozen until 2013/14
- The lifetime Entrepreneurs' Relief allowance will be increased to £5m
- Tax credit system system will be reformed to target the lower paid
- Entire benefits system to be overhauled
- Child benefit will be frozen for the next three years
- The Autumn spending review will be delivered on 20th October
We will update Contract Eye with further details shortly. For a more comprehensive list of announcements, try our sister site Bytestart.
All content ©Contract Eye Ltd. Protected by Copyscape. Please scroll down for related articles.
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