The last pre-budget report (PBR) from Chancellor
Gordon Brown was surprising brief, yet contained
many key points, according to Bristol based
accountancy firm Barnes Hunter. While green
issues dominated, underlying these were major
financial and tax implications for local
businesses and individuals to address.
Chris Barnes 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 measures 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.
Chris Barnes 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 Barnes Hunter
on 0117 930 0061.
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