Yardleystar

Quick Budget 2009 round-up of the main points affecting small businesses:

Supertax set at 50%

• From April 2010, big earners - that is high earners bringing in more than £150,000 gross income - will be taxed at 50%




• Replaces 45% tax rate announced in 2008 Pre-Budget Report




• Personal income tax allowance will be reduced for those earning more than £100,00 a year - the full details are awaited, but the allowance will taper to zero

Enhanced capital allowances

• For 12 months from April 2009, capital allowances are doubled from  20% to 40% in addition to the annual £50,000 annual investment allowance

Carry-back of business losses

• The scheme is extended for a further two years, until April 2011, and allows loss-making business to reclaim tax paid in earlier years. Expected to affect 140,000 businesses.

Insolvency

• The Insolvency Service is to monitor ‘pre-pack’ insolvencies when a business goes to the wall and arrangements have been made in advance with the owner or managers to buy the assets. The Goivernment wants to monitor how unfair this is to creditors with a view to legislating in the future.

Come clean over offshore cash

• Offshore account holders who have not declared cash, assets or tax due have until March 2010 to make a clean breast of their activities

Naming and shaming tax cheats

• Tax defaulters who have deliberately understated their tax by £25,000 or more will be publicly named and shamed by the taxman