The Pre-Budget Summary
2008
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Chancellor of the Exchequer
Alistair Darling has delivered a much-anticipated
Pre-Budget Report against a backdrop of economic
slowdown and turbulence in the global economy,
which has steadily deteriorated since the 2008
Budget on 14 March.
The Pre-Budget report announced two pieces of
good news for the Contractor Market place. |
1. Moves to outlaw the practice known as "income
shifting", common in family businesses, including
those run by contractors, where income is transferred
from one person to another to maximise tax efficiency,
have been put on hold. The government has consulted on
the issue but will not bring forward legislation in the
Finance Bill 2009, keeping the matter under review instead.
2. Following consultation on tax relief on travel expenses
for temporary workers, the government has decided to
leave the current rules unchanged. However, HM Revenue & Customs
(HMRC) will be working to ensure the existing regime
is properly applied, with the warning that the government
may return to the matter if compliance does not improve.
Danbro entered into the consultation process earlier
this year, emphasising the fact that HMRC had the powers
already in place to ensure compliance in the market place
with the current rules.
The move means that temporary workers operating through
an umbrella company or agency, using an overarching employment
contract, can continue to claim tax relief on their travel
expenses. HMRC will be paying close attention to the
abuse of such arrangements, including situations where
employees receive a significant part of their income
from their employer in tax-free expenses, regardless
of what work they have carried out.
The Chancellor emphasised that the measures set
out in the Pre-Budget Report were designed to help
families and businesses through “economic uncertainty
not seen for generations” and to position the UK
to take full advantage of a future recovery in the UK
economy.
Summary
of key proposals
Summary of key proposals announced.
Setting
the scene
VAT
and duty
Details of changes to VAT and duty.
Income
tax
Details of changes to income tax.
National
Insurance
Details of changes to National Insurance.
Business
and enterprise
Details of changes to business and enterprise.
Housing
and mortgages
Details of changes to housing and mortgages.
Benefits
and working families
Details of changes to benefits and working families.
Savings
Details of changes to savings.
Pensions
and retirement
Details of changes to pensions and retirement.
Alcohol
and cigarettes
Details of changes to alcohol and cigarettes.
Vehicle
Excise Duty (VED)
Details of changes to vehicle excise duty.
Company
cars
Details of changes to company cars.
The
environment
Details of changes to the environment.
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here to view full Pre-Budget Report 2008
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