Bright Days Ahead

We are not too downbeat about this year. n fact, we’d go as far as saying 2011 will be a year of growth. Why the optimism? Well, interest rates remain at an all time low and, increasingly, we are seeing evidence that the banks are starting to lend. We recently helped one of our clients secure a 100% Loan To Value £2m facility. Currently we are helping a company sell its business and it has already achieved the full asking price thanks to the support of the purchaser’s bank.

New VAT rate could be a long-term measure

The new standard rate of VAT could well become a permanent feature of the business landscape. The rate rose from 17.5 per cent to 20 per cent on 4 January. In a press interview given late last year, the Chancellor, George Osborne suggested that the rise may be here for a good while. Mr Osborne told The Spectator magazine:[…]

Government turns its eye to income splitting once more

The question of family firms that split income between husbands and wives in order to reduce tax bills may come under the scrutiny of the Office of Tax Simplification (OTS). For HM Revenue and Customs (HMRC), the issue has long been a challenging one. In the past, the tax authority has used laws passed in 1930s to stop family[…]

Posted in Tax

Business funding may get a boost

The woes suffered by smaller enterprises in attempting to secure finance have been well documented. But 2011 may herald at least a partial easing of the credit squeeze. The UK’s major high street banks have indicated that they will lend an extra £10 billion to small businesses this year. In 2010, the banks loaned some £60 billion to smaller[…]

Savers get extra protection

There isn’t much to cheer savers at the moment: rock bottom interest rates and stubbornly high inflation have combined to keep returns on funds at a puny low. But there has been some good news for those concerned that a second banking crisis may serve to compound problems. The ceiling on the amount of savers money that is safeguarded[…]

Corporation tax reform

At the same time as the 29 November Office of Budget Responsibility report the government announced details of some of the reforms to corporation tax. Among the changes announced is a plan to make corporation tax more “competitive.” This comes on top of other significant changes already announced, such as using iXBRL for filing corporation[…]

Pension changes from April 2011

From 6 April 2011, tax relief for pension contributions is restricted. This new provision has an interesting history. The last government announced that tax relief would be restricted to the 20% basic rate of tax for pension contributions for those earning £150,000 a year. This was then reduced to £130,000 in some circumstances. These arrangements[…]