Budget 2011: At-a-glance guide

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 Small business taxation

Personal tax summary

  • Personal allowances raised to £8,105 in 2011-12, but inflation will erode the real benefit of this rise
  • Consultation to start on merging Income Tax and NICs
  • Non-domicile taxation charge increased from 2012
  • Enterprise Investment Scheme and Venture Capital Trusts extended

Tax tables and HMRC administration

Commentary and reactions

About John Stokdyk

John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.


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24th Mar 2011 09:27

Money laundering reform

The Chancellor also said in his Budget speech "we will reform our burdensome money laundering regime".

There's more on this in the Money Laundering and Crime Discussion Group.


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24th Mar 2011 09:30

We were hoping you'd have picked up on that!

Thank you David for the reminder - I thought of you as George Osborne mentioned it - one of the minor excitement points for me during his speech.

Rebecca Benneyworth and a couple of other AccountingWEB members also spotted this paragraph in the Overview of Tax Legislation and Rates, which is likely to increase anxiety within the profession:

3.63 Dishonest tax agents — The Government has previously made proposals allowing HMRC, with appropriate safeguards, to obtain the working papers of dishonest tax agents, penalise them and publish their details on HMRC's website. The Government will be consulting on this measure. It will continue to informally consult stakeholders and will issue a consultation document and revised draft legislation in July 2011.

What the Chancellor gives with one hand, it seems, he takes away with the other.

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By Locutus
24th Mar 2011 13:52

A small point John ....

The link on the home page says Budget 2010

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24th Mar 2011 16:48

PA £8105

is from April 2012 therefore for 2012/13. It is £7475 for 2011/12.

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25th Mar 2011 10:12

The header Budget 2010 a typo to Budget 2011?

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28th Mar 2011 11:33

Personal Allowances

I see the reason for the confusion.  The text says PA raised to £8105 in 2011/12.  Not so.  The £8105 is for 2012/13.

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By Fmaat
29th Mar 2011 11:45

Budget Report 2011 ICAEW


Corporation tax 

For financial year to 31 March 2012

Main rate 26%

Small companies’ rate 20%

Upper profits limit £1.5m

Lower profits limit £300,000

Effective marginal rate 27.75%

Marginal rate fraction 7/400

Anyone else noticed the "marginal rate and the marginal rate fraction"

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By dstickl
01st Apr 2011 19:33

IR35: What the Chancellor missed - apparently to save £1m pa tax

Here's a good way to support StartUp Britain by a quick change to IR35 secondary Legisaltion:

A- As there was no change to the IR35 regime in the ’11 Budget for "growth" (contrary to the 20 May'10 announcement) may I suggest you alert the Chancellor (and PCG etc etc) to a potential change to the "Social Security Contributions (Intermediaries) Regulations 2000 SI 2000/727" Section 7 (1) Step One that reads:
7 Worker's attributable earnings—calculation
(1) For the purposes of regulation 6(3)(a) the amount of the worker's attributable earnings for a tax year is calculated as follows:
Step One
Find the total amount of all payments and benefits received by the intermediary in that year under the arrangements, and reduce that amount by 5 per cent

B- I suggest that the words "by 5 per cent" be replaced by:

"by a monetary amount that is the greater of either (1) £40,000 (forty thousand pounds) or (2) 15 (fifteen) per cent"

C- Reasons: (1) Need for economic growth to be stimulated in the private sector, eg by redundant public sector workers, with commercial certainty. (2) Some startup etc small business costs are fixed, i.e. independent of company revenue, and I have selected a "Highest Common Figure" reflecting (a) IPSA's costs for an MP's one person office in London, which is (b) justified for other UK locations because many small contractor businesses have to travel to London to work, network, for marketing, training, etc, etc.

D- More: I gather from evidence set before Parliament that the tax cost might be less than £1m pa, i.e. negligible!
And for civil servants [perhaps stimulated by self-interest, perish the thought!]: It may help newly redundant public sector workers seek new work, through releasing their entrepreneurial talent. 

If you can give this moderate proposal some more traction with your support, I'd appreciate it!

Brgds - Don Stickland, BA, MA, BA, ACMA

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