Yesterday, Wednesday 6th December, was the chancellors Pre-Budget Report. The main issue for contractors is the introduction of new legislation in the 2007 finance bill to counter avoidance by contractors who are using Managed Service Companies. Will we examine this in further news report.
A summary of the main points of the budget are:
- Fuel taxes: From February, air passenger duty will rise from £5 to £10 for most flights.
- Child benefits: Benefits for poorest children will rise to £64 a week. Every mother will get additional child benefit in the last months of pregnancy from April 2009.
- Pensions: Basic state pension to rise 3.6% in April and pension credit minimum guarantee to rise £5 for single people and £7.65 for couples.
- Education: Many measures injecting cash into education, with a 2020 target of 90% of adults achieving five GCSEs or equivalent.
- Homes: New carbon-zero homes will be exempt from stamp duty.
- Economy: Growth this year @ 2.75%. Inflation by mid 2007 expected to be at 2% target.
- Tax Avoidance:New legislation will be introduced to counter tax avoidance by Managed Service Companies. See later reports.
For further information and analysis: BBC