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Happy Birthday

Happy 50th Birthday to James on 5th November 2014!

Hope your bir
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Change of office
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Quick! Get organised with paying VAT

Legislation in the Finance Act 2009 changed the effective date of payment when payments are made
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HMRC help business cash flow

In the 2009 Budget statement, the Chancellor announced further help for busines
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Beat the deadline

HMRC have issued a timely reminder to employers to file their employer annual return by t
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Charities to receive gift aid supplements
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Changes to P46 process

There are several changes to the P46 process and reporting requirements for employers tha
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Darling raises personal tax allowance
Chancellor Alistair Darling has raised personal tax allowances by 600 to compensate the 1.5
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Darling raises personal tax allowance
Chancellor Alistair Darling has raised personal tax allowances by 600 to compensate the 1.5 million people hit by the abolition of the 10p tax rate.

Personal tax allowances will rise to 6,035 for this tax year, which the chancellor claims will benefit all basic rate tax payers and provide 22 million people on low and middle incomes with an additional 120 this year.

Mr Darling said: "My proposal for this year will not only help those on low incomes who lost out, but also does more to help all basic rate taxpaying families at a time when oil and food prices have been rising in every part of the world.

"So, at a cost of 2.7 billion, I will increase the individual personal tax allowance by 600 to 6,035 for this financial year, benefiting all basic rate taxpayers under 65."

Mr Darling said 80 per cent of those affected will be fully compensated, and 20 per cent will be compensated by half.

From September basic-rate taxpayers will see a one-off increase in their monthly income of 60 and then an increase of 10 per month for the rest of the financial year.

Some 600,000 people will be taken out of tax by the rise of the tax allowance and it is claimed 4.2 million will be better off or as equally well off by the changes.

Those aged between 60 and 64 will get the advantage of an increased personal allowance and a winter fuel allowance increase, to be backdated to April 6th.

The chancellor told parliament a rebate scheme would be complex to administer and changes could not be introduced quickly as the changes initial planned for the pre-Budget statement in the autumn were brought forward.

Those on the 40 per cent higher rate of tax will also see changes.

Mr Darling said: "Higher rate taxpayers were largely unaffected by the reforms announced last year.

"As the 600 increased personal allowance applies not just to basic rate taxpayers but also to those paying tax at a higher rate, I am therefore reducing the threshold at which an individual starts to pay tax at the higher rate by 600."

He claimed the net effect of these changes is that the tax liability of everyone that currently pays tax at 40 per cent will be unaffected by the increase in the personal allowance and those brought into the higher rate will gain by up to 120 this year.

Shadow chancellor George Osborne questioned whether the help would be for one year only and demanded to know long-term plans to compensate people.

He also hit out at Mr Darling for now marking ten emergencies in ten months and said he was reopening the last Budget ahead of the forthcoming by-election, describing the measure as a "compensation con".

Mr Osborne said it was "a complete humiliation for the chancellor".

Liberal Democrat shadow chancellor Vince Cable claimed an increase of 1,000 in the tax allowance would be needed to aid the 1.5 million paying more tax by the changes.

The chancellor was forced into a U-turn on the issue last month when Labour rebel Frank Field mustered enough backbench support to threaten a government defeat on the issue.

Backing down over the abolition of the 10p starting rate of income tax introduced in Gordon Brown´s final Budget - Mr Darling had agreed to consider ways in which those losing out as a result of the change could be compensated in a letter to Treasury committee chairman John McFall on April 23rd.