| The
2007 Budget proposed the following tax changes: Business Tax First year capital allowances at 50% are extended for a further tax year starting 6 April 2007 for traders and from 1 April 2007 for limited companies. Tax Allowances will be made available for the renovation of business premises from 11 April 2007. Corporation Tax The small company's rate, for companies with profits up to £300,000, is increased from 19% to 20% from the financial year 2007/8 starting 1 March 2007. Value Added Tax The VAT registration limited is increased from £61,000 to £64,000, and the deregistration limit from £59,000 to £62,000 from 1 April 2007. Child and Working Tax Credits
The percentage of eligible childcare costs covered is increased from 70% in 2006/7 to 80% in 2007/8. The income disregard is ?25,000 in each tax year. The first income threshold is ?5220. National Insurance The National Insurance band is raised to ?100 a week before employees and employers pay class 1 National Insurance and self employed traders pay class 4 National Insurance. The class 2 rate is raised to ?2.20 a week from ?2.10 from 6 April 2007. Landlords Energy Saving Allowances The energy saving allowance for let residential properties now includes floor insulation and is increased to ?1,500 for expenditure on each dwelling from 6 April 2007 until 2015 which can be claimed (previously ?1,500 each building). National Minimum Wage The minimum wage hourly rates for adults (over 22), youths (18-21) and 16/17 year olds are as follows :-
Please contact Yvonne or Ian Sheppard if you would like to discuss in more detail these changes for 2007/08 and whether you can benefit from tax and financial planning. |
Current
Rates of UK Tax
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