Deadlines coming up

• 19 May 2008  - Employers file P35 2007/08
• 31 July 2008 – Further £100 penalty for SA tax returns not filed
• 31 July 2008 – SA income tax payment on ac 2007/08

Budget 2008

Main Relief's and allowances    2008/09

·         Self employed Class 2 NI earning exemption £4,825

·         Weekly employees £105 threshold for income & national insurance

·         VAT registration limit £67k

·         Stamp duty threshold residential £125k non residential £150k

·         Inheritance tax on gross lifetime transfers over £312k

·         Capital gain annual exemption £9,600

Key changes  2008/09

·         Capital gains tax individuals – new rules & new rate 18 %

·         Capital allowance reforms  & a new annual investment allowance £50,000

·          Income tax cut from 22 % to 20 %

·         Corporation tax - small company rate increase to 21 %

·         Penalties for incorrect Returns – new regime

Companies Act 2006

• The most significant piece of company law legislation in the last 20 years
• Major changes in UK company law affect all UK businesses

National Minimum Wages

New rates from 1st October 2007 are:

• £5.52 per hour for workers aged 22 years and older

• £4.60 for workers aged 18 - 21 inclusive

• £3.40 for workers under 18 who are no longer of compulsory school age

New Year thoughts

  Mervyn King, Governor, Bank of England 

• It is difficult to know how hard households will be hit as the credit crunch intensifies.  It is cutting back the supply credit and increasing the cost of borrowing individuals and businesses

• Property investment, both commercial and residential, could fall back sharply

• Small firms which rely on banks to lend them money for investment may also find it more difficult to get cash

Richard Lambert, director-general of the Confederation of British Industry,

•  observes the balance of economic power was shifting to India and China.

Why not contact us for advice on  income tax, corporation tax, capital gains tax and inheritance tax