How
Will Gordon's Final PBR Affect You and Your Business
The last pre-budget report (PBR)
from Chancellor Gordon Brown was surprising brief,
yet contained many key points, according to Shepshed
based accountancy firm Marlow Associates. While
green issues dominated, underlying these were major
financial and tax implications for local businesses
and individuals to address.
Adam Marlow comments: “Many
businesses may feel that environmental issues are
not their concern, however it’s exactly this
reaction which Gordon is trying to address and
of course the best way to do this, is to introduce
financial measure for those which ignore our changing
climate. So looking at your company’s
fuel consumption, company car schemes and business travel is now more important
than ever.”
Main points announced included that from February, air passenger duty will rise
from £5 to £10 for most flights. There was also an inflation rise
in fuel however these increases were offset against tax discounts for biofuels,
which were extended.
With regard to self employed, the government remains concerned about the tax
motivated incorporation of the self-employed, which involves businesses taking
advantage of structural differences in the tax and NIC treatment that applies
to companies. The government will therefore continue to review ‘how the
system could be modernised, made simpler, more efficient and more competitive’.
Protecting employees featured as highly on the list on priorities as protecting
the environment with the national minimum wage now at £5.35 an hour and
in January the penalties for failing to pay it will rise. The government will
also introduce from April 2009 a new entitlement for all pregnant women to receive
child benefit from the 29th week of their pregnancy and the basic state pension
will rise to £87.30.
Adam continues: “While any extra direct costs to a small or growing business
can be hard to deal with, such as the national minimum wage, it’s good
news that the government is also making the effort by increasing state payments
such as child benefits and pensions.”
For more information contact Marlow Associates on 01509 502141. |
