Today’s budget brought very few surprises for business owners.
Whilst the government’s agenda is clearly one of growth the announcements made will do little to counteract the cuts in public services and government contracts for businesses. Consumers will be hard hit suffering from high inflation, petrol prices, job losses and static wages.
Below, we have listed what we think will interest you most from today’s announcements together with previously announced measures which will come into effect this April.
- Corporation tax cut by 1% from April 2011 to 20% for small companies
- and by 2% to 26% for large companies.
- National insurance will increase in April 2011 as previously announced to from 11% to 12% for Class 1 employees and from 12.8% to 13.8% for Class 1 employers. There will also be a rise in Class 4 from 8% to 9%.
- Fuel duty is to be cut by 1p per litre with effect from 6pm this evening and the further 4p per litre fuel duty rise due in April has been postponed.
- Tax free mileage rates for business use of personal car to increase to 45p per mile.
- A Fair Fuel Stabiliser has been announced to help keep fuel costs down in future and this is to be funded by an increase levy on oil and gas production. As a result of record energy prices an expected increase in revenues of £2 billion is due over the next five years from North Sea oil and gas companies.
- A further increase in the personal allowance rates has been announced so that the personal allowance will increase as follows over the coming years 2010-11 £6475, 2011-12 £7,475 and 2012-13 £8,105.
- Forecast for how much UK economy will grow in 2011 downgraded. The economy is forecast to grow by 1.7 per cent in 2011, lower than forecast in the June Budget. This mainly reflects higher-than-expected inflation this year, as a result of recent global commodity price shocks, and the weak weather-affected final quarter of 2010
If you would like any further information on the Budget or if you would like advice on the financial implications of the coming year for your own business the please feel free to contact the team on 01733 371180.