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Highlights from the chancellor's Pre-Budget Report 2009 PDF Print E-mail
Thursday, 10 December 2009 00:00


The key measures announced by the Chancellor in the Pre-Budget Report 2009 are summarised below:
 

Bank payroll tax
A new 50 per cent bank payroll tax on bonuses worth more than £25,000 will be introduced. It will be payable by a bank, not the employee.

VAT rate reversion to 17.5%
The standard rate of VAT returns to 17.5% from midnight on 31 December 2009. There will be a period of grace for certain businesses trading across the midnight deadline to charge the lower rate until either when they close, or if earlier, 6.00am.

VAT Flat Rate Scheme Changes from 1 Jan 2010
The percentages for those using the flat rate scheme were re-calculated in December 2008 to reflect the temporary reduction in the standard rate of VAT. The flat rate percentages have now been re-calculated to reflect the reversion of the standard rate of VAT to 17.5%. The new rates will be implemented on 1 January 2010.

National Insurance
From 6 April  2011, National Insurance contributions will rise by 0.5% for all employer, employee and self-employed rates but those paid less than £20,000 will be not be affected.

Tax Rates and Thresholds
For the tax year 2010/11, all tax allowances and thresholds will be the same as for the current year (2009/10.

For the tax year 2012/13, the higher rate threshold (the point at which someone starts to pay higher rate tax) will be frozen at the 2011/12 amount. The personal allowance will be increased and the basic rate limit will be reduced by the same amount.



 
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