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The sun shone while Darling announced tax and borrowing increases!


It may have been sunny outside on 22nd April 2009, but Alistair Darling brought the world’s doom and gloom into his Budget speech. The message was clear: this is bigger than just the UK; it's an international, planet-wide problem and therefore, technically, not anyone’s fault. He referred to the deep crisis of the 1930’s and said that too little had been done too late. “We will not repeat those mistakes again”. He used the past to justify the headline grabbing public borrowing figures, peaking at £175 billion this year, before falling slowly over the following years.

The speech was crammed with World doom and gloom, before Darling announced his rescue plan of investing to grow the UK out of recession. Darling used the gravity of the situation to increase the previously announced 45% top rate of tax from April 2011 within the blink of an eye to 50% from 2010.

As usual there were masses of detail to wade through, 222 pages of budget notes, 42 pages of press notices, not to mention hundreds of pages of supplementary documents, before you even consider the budget report itself. In this edition of PayLessTax we review the changes and what action you can take to save tax.


Company tax rates remain unchanged


The rates of corporation tax remain unchanged. The main rate of corporation tax will continue at 28%, and as previously announced in the 2008 Pre-Budget report the corporation tax rate for smaller companies is to stay at 21%. However it is still the highest it has been in recent years despite the recession. However there are still significant tax savings to be enjoyed by transferring a business into a company.