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Contractors gear up for Emergency Budget measures
Posted Jun 22, 2010
The Chancellor will deliver his highly anticipated "emergency" Budget today from 12.30. On Contract Eye, we'll be updating the site with updates with all the relevant announcements throughout the afternoon, followed by industry reaction and analysis of what the changes mean for contractors and freelancers in particular.
The key announcements have already been much discussed in the media, and no-one in the UK is likely to feel better off as a results of the Budget measures. This is unsurprising really, given the enormity of the debt the country is faced with following the global financial crisis and the previous Government's shocking handling of the economy.
Changes to look out for include rises in the rates of VAT and Capital Gains Tax, a reduction in the headline rate of Corporation Tax, the removal of tax credits for wealthier families, and a small increase in the lower income tax threshold. The 50% income tax rate is bound to stay in place, and it is possible that higher earners may face even higher income tax bills via changes in the higher rate threshold - as well as fiscal drag.
Contractors, in particular, will be interested to see if any further details emerge about the "review" of IR35. This does seem very unlikely however, but you never know.
Check back on Contract Eye this afternoon for further updates.
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