Umbrella companies await pre-budget report

Posted on 24 November 2008

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Chancellor of the exchequer Alistair Darling is set to present his pre-budget report in the House of Commons today (November 24th).

The report could have significant impacts upon contractors and umbrella companies, as in previous years where significant announcements relevant to self-employed professionals have been announced.

In 2007, measures relating to the controversial practice of income shifting were announced, although action regarding financial transfers within family businesses was later postponed.

This year, many small business owners may hope that the chancellor takes the opportunity to suspend an intended rise in corporation tax from 21 to 22 per cent, scheduled to come into force from April 2009.

It has been widely predicted that Value Added Tax will be slashed from 17.5 per cent to 15 per cent in a bid to increase levels of consumer spending.

Under European Union law, this would be the lowest level permissible for VAT, which has stood at 17.5 per cent since the early 1990s.

Category: Tax & Legislation News

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