Budget Report

[Ozzy]

Well I'm just skimming through it and the first bit that jumps out at me as a plus, is the increase in corporation tax barrier from £10k to £40, albiet you have an increased percentage from 19% to 23.5% for the bracket of £40k to £249k.

The increase from £10k to £40k is a nice move for small business, but those making the say £200k profits are going to get a bit of sting on their corporation tax now.

Personally, I welcome this although could have done with it being in place by the end of last year

 

[Alpha]

The increase from £10k to £40k is a nice move for small business, but those making the say £200k profits are going to get a bit of sting on their corporation tax now.

Richard

Not sure what you are reading (better take those antibiotics :wink: )

Before the budget corporation tax rates were

0 - 10k 0%
10k - 50k (this effectively taxed all profits between £10k and £50k at 23.75% when taking the 0% into account....just need to do the maths!!)

If profit is 20k that would be 20k at 19% less marginal relief = 19/400x (50000-20000) or 10k at 23.75%

50k - 300k 19%

The government have now removed The 0 - 10k band so all profits up to £300k are now taxed at 19%.

Not very good news for small companies (although with the tax on non corporate distributions they effectively removed the 0 rate band in the last budget)

 

[DuaneJackson]

If profit is 11k that would be 10k at 0% and 1k at 19% or 11k at 23.5%

Surely the tax on the 11k (being 19% of 1k) would be £190

£190 being a lot less than 23.5% of the enitre 11k?
I'm glad I'm not an accountant!

 

[Ozzy]

I'm looking at a table in front of me that is showing a zero rate band up to £40k from 31st March 2006. I've PM'd you the link for you to see, as dont want to post a link on here incase its incorrect data.

 

[Alpha]

I've PM'd you the link for you to see, as dont want to post a link on here incase its incorrect data.

Richard

Data on the Link is fine but you are reading the wrong column

 

[Alpha]

Surely the tax on the 11k (being 19% of 1k) would be £190

£190 being a lot less than 23.5% of the enitre 11k?
I'm glad I'm not an accountant!

Didn't realise what a mess I'd made of my hurriedly typed explanation.



Have corrected it now but unfortunately it means that Duanes post no longer makes sense..............sorry Duane.

 

[Riggadoo]

So by removing the 0% band upto 10k we are all £1900 worse off right??

 

[DuaneJackson]

Have corrected it now but unfortunately it means that Duanes post no longer makes sense..............sorry Duane.

That's OK, I rarely make sense anyway : )

 

[Sprinta]

So by removing the 0% band upto 10k we are all £1900 worse off right??

Thats my understanding.

 

[Alpha]

So by removing the 0% band upto 10k we are all £1900 worse off right??

Yes and No

If people paid themselves by dividends the chancellor had already effectively removed this band last year by the 19% tax on non corporate dividends.

The difference is that last year you obviously had the choice of paying a dividend or not. From now on that 1st £10k profit will be taxed irrespective of whether an individual extracts it or not.

 

[dcaccounting]

It does make interesting reading doesn't it :lol:

Regards

Dean

 

[Ozzy]

Err, is the Government trying to screw businesses on purpose?

 

[Jayne]

No Ozzy, they are not particular who they screw :lol:

I think they like to screw everyone! Oh and i've got a 4x4! Bummer!

Jayne

 

[dcaccounting]

No Ozzy, they are not particular who they screw :lol:

I think they like to screw everyone! Oh and i've got a 4x4! Bummer!

Jayne

Is your vehicle registered after March 2001?

If not then there is no change to the old rules... you will be taxed according to engine size not CO2 (g/km)

Regards

Dean

 

[Jayne]

No Ozzy, they are not particular who they screw :lol:

I think they like to screw everyone! Oh and i've got a 4x4! Bummer!

Jayne

Is your vehicle registered after March 2001?

If not then there is no change to the old rules... you will be taxed according to engine size not CO2 (g/km)

Regards

Dean

Well you have to get technical and spoil my moaning :lol:

My car is only a 1.8L so it's not a big gas guzzler, it just annoys me how they stick all 4x4 owners in one big box. My car is clean, I use unleaded petrol and it's got a fart box on too. :lol:

Jayne

 

[Ravenfire]

Did you see the lady on television who HAD to have a Mercedes people carrier as she had two children, well I have three children so I'd like a bus please so that there is room for all of us!

The budget is a farce, what they have given in one hand they have taken from the other!

 

[dcaccounting]

Sorry Jayne I assumed you were having a moan becuase you would have to pay addtional RFL when in fact you may not have too...(ok an extra £5 for vehicles above 1549cc )

You may continue to moan


Must say, it's certainly round one to David Cameron... and to quote or at least words to this effect what he said about Gordan Brown and the labour party:-

"He's an analogue MP in an analogue Party in a digital world... He's the past!" :lol:

Regards

Dean

 

[dcaccounting]

Did you see the lady on television who HAD to have a Mercedes people carrier as she had two children

Yes it was quite amusing.

Was it on the same programme that also said "for these gas guzzlers, the majority of them cost in excess of 40k so for these people, whats an extra £45?"

Regards

Dean

 

[Jayne]

Have you notice too how he has put beer up again and not spirits. I bet My Brown drinks whisky!

If they keep taking like this, somethings going to give somewhere ...resesion here we come :lol:

I'm glad we sold the bakery now, tiny businesses seem the best way forward, less for Mr Brown :lol:

Jayne

 

[Ravenfire]

Was it on the same programme that also said "for these gas guzzlers, the majority of them cost in excess of 40k so for these people, whats an extra £45?"

Regards

Dean

Not sure, didn't see that before although we did think the same. A drop in the ocean to those driving a nice new Mercedes people carrier.

 

[Cornish Steve]

I don't mean to rub salt into the wounds, but my tax rate went down again this year. In order to grow the economy, the US government has been cutting taxes - whoohoo. If it wasn't for that, I'd be struggling to get my business venture going. This must mean the policy is working because almost all growth comes from small business.

 

[DuaneJackson]

and it's got a fart box on too.

Do you think that if i attached one of those to my rear I'd save some income tax? I'm sure I've caused a big hole in the ozone layer directly above my bedroom!

 

[Jayne]

and it's got a fart box on too.

Do you think that if i attached one of those to my rear I'd save some income tax? I'm sure I've caused a big hole in the ozone layer directly above my bedroom!

So it was you who made the second hole, I knew my husband has made one of them and was wondering who made the other :lol:

It could be a good business idea for you Duane, catalytic converters for men :lol:

Jayne

 

[SuffolkDesigns]

I don't mean to rub salt into the wounds, but my tax rate went down again this year. In order to grow the economy, the US government has been cutting taxes - whoohoo. If it wasn't for that, I'd be struggling to get my business venture going. This must mean the policy is working because almost all growth comes from small business.

Same here, we have gone from 26% to 22% over the last 2 years and will go down to 20% next year.

0% corporation tax and tax on dividends is the same as income tax.

 

[Riggadoo]

I know the only two sure things in life are death and taxes but this really riles.

They introduced the 0% on the first 10k so that hoards of businesses made the change from sole traders to limited companies. Over the past two bugets they have eliminated that meaning that most people were better off as sole traders in the first place!

The sinical amongst us would almost be led to believe that this was planned or something !?!

 

[Cornish Steve]

I know the only two sure things in life are death and taxes

If I remember correctly, less than 20% of people paid taxes a century ago. Income tax is a relatively new phenomenon. The trouble is, once the government believes the money is theirs and not ours, they just keep wanting more.