News
2011 Budget Summary
24 - 03 - 2011
2011 Budget – Summary for Contractors.
Key points that may affect contractors:
- Business Mileage
Business mileage, for use of own car, has been increased from 40p to 45p for the first 10,000 miles. The 25p rate remains for miles over 10,000.
- Corporation Tax
The main rate of corporation tax has been reduced by a further 1% from 01.04.2011. However the small company rate, applicable to most subcontractors, remains at the 20% rate previously announced for 2011/12.
- Personal Allowances
As previously advised the 2011/2012 personal tax allowance will be £7,475. The 2012/13 personal tax allowance will be increased by £630 to 8,105.
- VAT
The threshold for VAT registration was increased to £73,000 turnover.
- IR35
IR35 remains and the government are committed to improving the way it is administered. This follows the guidance previously issued by the Office for Tax Simplification.
- Income Tax and NI
The government has a long term goal to combine the PAYE and NI regimes into one “simple tax”.
