News

GENERAL NEWS

TAX RETURNS

Many tax returns have now been completed and filed; others are in progress, but a few clients have not yet sent us details for their 2008 tax returns. Please remember that all 2008 tax returns must be filed by 31 January 2009, otherwise you risk automatic penalties plus interest and surcharges on unpaid tax - If you have not yet sent us your 2008 tax return information, please do so now! Unfortunately, due to Debbie’s absence, we cannot undertake to complete returns on time if tax return information is not received in the near future.

TAX CHANGES

The Chancellor’s pre-Budget statement was presented to the House of Commons on 24 November. With the economic climate as it is, it was unsurprising that there were some radical changes:

• VAT was reduced from 17½% to 15% from Monday 1 December, but it will revert back to 17½% from 1 January 2010. We have already emailed or written to all our VAT registered clients, and full details are provided on our information page.

• The scheduled increase in corporation tax for smaller companies from 21% to 22% has been deferred for a year until 1 April 2010.

• Both limited companies and unincorporated traders will be able to carry back losses for up to 3 years for a short period of time. We will be able to advise those clients who are affected.

• To recoup the tax relief given now, there are going to be increases in National Insurance for all employers and employees from 6 April 2011, when all NI rates will increase by 0.5%. Additionally, NI bands are to be aligned with the basic rate tax band from 6 April 2009, which will affect all those with salaries in excess of £40,040 per annum.

• There are also increases in personal income tax for those with earnings over £100,000 from 6 April 2010, and from 6 April 2011, a new 45% income tax rate will apply to income above £150,000 p.a.

As a result of the VAT change, we will be contacting all clients who pay by standing order over the next few months. Any changes resulting from the VAT decrease will be reflected in future fees, and we will deal with these as soon as we can.

AND FINALLY

We are delighted to announce that Debbie Nelson-Gracie gave birth to a daughter, Pippa Grace, early on the morning of 1 December. Pippa weighed in at 7lb 11oz, and baby and mother are doing well.

For specific advice on any of the matters above, please contact David Meredith, Andy Wilson, or Carolyn Gore on 01580 765088