Originally Posted by moonie:
I remember the time when you used to get the odd leak about the Budget. Now you get virtually everything before the Budget speech
It was Gordon Brown who started telling us what was in the budget before the speech and also announcing what was going to happen to taxes over the next few years. That can make life a bit confusing for accountants like myself.
It's already been announced what the personal allowances and rates will be from April.
But it's a bit unknown for companies who pay corporation tax. There's the main rate and the small profits rate. The main rate has been lowered in recent years. It used to be 28% in 2010, currently 24% and will be 23% as from April. But the small profits rate which was 21% is currently 20% and no announcement has been made as to what the rate will be from April. If a small company has a year end of 30 September, it knows that on the current year it will pay tax at 21% for the first half of the year to 31 March but has no idea what the rate will be for the second half of the year. Is it going to be 20%, or is it going to be lowered, or is the chancellor going to say that as the main rate is now only slightly higher he's getting rid of the small profits rate? Apart from the chancellor, no-one knows.