Spring 2012 Two things are certain in life!
IN THIS issue we cover two certain issues in life, Death & Taxes, through a look at the recent budget and a client profi le on Paul Sullivan, undertaker and client of our Dover offi ce. However, don’t be too discouraged as we also have some much needed inspiration and motivation from no less than a Paralympic athlete!
Budget highlights In view of the current economic position and the European debt crisis it was hardly surprising that the 2012 budget would call for more tightening of
belts. Indeed George Osbourne justifi ed his budget by saying, “The UK borrowed its way into trouble and now we’re going to earn our way out!”
The top level of income tax, initially a temporary measure, has since its introduction been slated. HMRC has confi rmed, that the 50% rate does not work and according to the Chancellor, “has at best only brought in an additional £100m yet has probably been detrimental to the economy.” As a result, from 6th April 2013 the higher earning tax rate will drop to 45%.
Personal tax allowances will rise in April 2013 to £9,205, the biggest leap yet in the history of budget announcements. This came coupled with the declaration that the Government
By Michael Whittaker, Partner at Herne Bay offi ce
will work towards achieving an eventual £10,000 personal tax threshold!
Corporation Tax will be
reduced from April 2013 to a new rate of 24% and the Chancellor promised to reduce this further to 22% by April 2014. This new rate will ensure that the UK is a more attractive investment option as a world business centre.
Other big news was the raise in Stamp Duty to 7% for individuals purchasing properties in excess of £2m but more importantly was the stance that the Government has taken against foreign investors who buy properties through companies to avoid paying any excise.
The Chancellor also made
reference to the anti tax avoidance measures, that
More information can be found in our 2012 budget reports available from your local offi ce
this year alone will result in an additional £1 billion revenue being raised! New initiatives were introduced in February of this year, which includes the targeting of individuals’ earnings through online, market and party trading, see page 6 for our ‘Seller Beware’ article for more details.
Whilst another tough trading year is ahead of us don’t forget that with over 75 years experience of advising our clients, in all market conditions, we are always on hand to answer any queries you may have. Rest assured, we will continue to work to our ethos of helping our clients keep more of what they earn, despite what happens in Downing Street!
INSIDE This Issue
Employment Matters Page 2
VAT Online are you prepared? Page 5
Insolvency Matters Page 7
European Network Page 8
In the meantime, may I and the entire fi rm wish you all a Happy and a successful year of business.
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