Darling’s 2009 Budget

On Wednesday of this week Chancellor of the Exchequer, Alistair Darling gave the Budget.
We would like to present you some of the main points of the Budget:
• VAT: the VAT rate, now 15%, will return back to the standard rate of 17.5% from 1st January 2010.
• Companies’ loss carry back for business: this will affect all companies making losses from carrying on trades, professions or vocations this is normally referred to as trading losses. This legislation will be introduced in Finance Bill 2009 to extend the ability of businesses to carry trading losses back against profits of earlier years to get a repayment of tax, due to the current turbulence of the financial markets.
• Capital Allowances (Plant and Machinery: Temporary first year allowances): This will most likely affect businesses investing in plant and machinery between April 2009 – April 2010. This legislation also in the Finance Bill 2009 will introduce a new temporary 40% first year allowance (FYA) for the expenditure on plant and machinery that would normally be allocated to the main capital allowance pool.
•Income tax: You will now be taxed a shocking 50% if you earn over £150,000
•Child Benefits: Child Benefits will be increased by £20 by 2010.
So from 2010 your eldest child would get £40.00 and any child after that would get £33.20, and guardians allowance would be £34.10.
• Child trust funds: Trust funds for disabled children would increase by £100 and by £200 for those severely disabled.
•ISA’s: This will affect the savers, as Alistair Darling made the decision to raise the tax-free ISA limit to £10,200, although those over 50 years-old will benefit this tax year. The rest of us will get this benefit the following one.
If you would like to know more about Alistair Darling’s Budget, Taxfile recommends you following this link.

Statutory Sick Pay (SSP)

Statutory Sick Pay (SSP) is a standard rate state benefit payable by the employer from the fifth day of sickness. The first three qualifying days of a period of incapacity for work are called waiting days and there is no SSP payment.

In order to qualify for SSP you must meet the following conditions:

• you have to be sick for at leat four days in a row (including weekends and bank holidays)

• you must earn at least £90 per week or £95 a week from 08/09 tax year. This is to do with National Insurance contributions. (If you have two jobs, you may even be able to get SSP from each of your employers, depending on how many hours hours you work.)

Also you would need to provide your employer with some sort of medical evidence.

The standard rate of SSP is £79.15 a week. The way your employer will work out a daily rate is by dividing the weekly rate by the number of days you would normally work in that week.

It is important to remember that SSP payments is subject to tax and NI just like any other type of earnings.

If your employer does not pay you SSP or pays you less you have to clarify with them the reason.

Company sick pay schemes vary from employer to employer, but most state that you should have been working for at least 3 months before you make your claim for sick pay. After this you would then receive your normal pay during any period that you are off to work due to illness, but this is only up to a specific number of weeks. After that you are probably going to receive only half pay for another further period before taking any sick leave as unpaid.

We hope that you have found this information useful, and if you still have any unanswered questions regarding SSP, please fill free to pop in to our offices in South London, Tulse Hill or Exeter.

Happy New Tax Year!

With the new tax year just around the corner, Taxfile offers you the opportunity to save some money on your accountancy bill just by presenting this voucher when you come to see us in our office in Tulse Hill or Dulwich.
So not only would you save money by getting this discount but also you get to join Taxfile and meet its multilingual team.To give you a better idea of what to expect, you can see bellow our colourful card:

So whether you are a builder and you qualify for a tax rebate , a landlord or a cab driver and you want to know your tax position in order to start saving towards your tax bill, Taxfile is here to take the strain.

Also, as many of you may have noticed a significant drop in your earnings due to the current financial crisis, by coming in early to see one of our experts you might be able to avoid paying your second payment on account for the following tax year, which is due in July.

We are looking forward to seeing you soon.

May the New Tax Year bring you less hassle and more money in your pockets!