Well that’s the Budget over and done with for another year. During Prime Minister’s Questions directly before the Chancellor’s speech, David Cameron joked that we were in for a kaleidoscope budget.
But will George Osborne’s measures have any drastic impact on umbrella company contractors?
We heard that this was to be a Budget that rewards work and a budget that provides a competitive tax system for small businesses. The Chancellor announced that corporation tax would decrease by 2 percentage points to 24% in April; double the decrease that had been originally planned. He also acknowledged the need to make it easier for small businesses to fill in their tax returns and promised a consultation on the recommendations from the OTS.
Contractors who live out in the sticks will be pleased to learn that the government intends to improve mobile phone coverage in rural areas. The Chancellor promised that 90% of the population would get access to super-fast broadband. However, there was no mention of improving broadband speeds for businesses in rural areas.
Mr Osborne went on to say that the government was exploring the idea of enterprise loans to help young people set up their own business.
We’re all interested in the amount of tax we have to pay and high earning contractors will the pleased to learn that the 50p tax rate is to go in April 2013. The new top rate will become 45p. He also announced the largest ever rise in personal income tax allowances. Again this comes into effect as from April next year when the threshold will increase by £1,100 to £9,205.
The Chancellor always ends his speech by saying “I commend this Budget to the House”. But has he commended it to contractors!
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Image: Kaleidoscope by nigeljohnwade
