In today’s emergency budget Chancellor George Osborne confirmed a number of measures introduced by the previous government would be retained.
Theses measures are:
Tax and national insurance
- As previously announced in 2011-12, the national insurance contribution (NIC) primary threshold will increase and NICs rates will be increased by 1% (2009 pre-Budget report).
- In 2012-13 the higher-rate threshold (the level at which 40% tax begins to be paid) will be frozen (2009 pre-Budget report).
Workplace canteens
- Legislation was included in the Finance Act 2010 to restrict the tax exemption for workplace canteens by removing the exemption when used in conjunction with salary sacrifice or flexible benefits arrangements. This will take effect from April 2011. (2009 pre-Budget report).
Childcare
- From April 2011, the weekly amount that parents joining an employer-supported childcare scheme will be able to claim exempt of income tax and disregarded of NICs will remain at £55 for basic-rate taxpayers, but will be reduced to £28 and £22 per week for higher and additional-rate taxpayers respectively.
- All current users will continue to enjoy the same exemption and disregards beyond April 2011. (2009 pre-Budget report).
Pensions and auto-enrolment
- The Government is supportive of auto-enrolment. It has committed to reviewing private pension reforms and will be announcing details of a review shortly.
Company cars
- Under plans the Government has inherited, fuel duty is scheduled to rise by one pence per litre above indexation in April 2014.
- From April 2011, the basic threshold for the 15% band of company car tax will be reduced by 5 grams of carbon dioxide emitted per kilometre (g CO2 per km), so this band applies to cars emitting between 121 and 129g CO2 per km. The percentage of list price subject to tax will continue to increase by
one percentage point with every 5g CO2 per km increase in emissions, to a maximum of 35%. - The cap on car list prices used to calculate the taxable benefit arising from company cars will also be abolished on this date, as will discounts for early uptake Euro 4-standard diesel cars, higher-emitting
hybrid cars and alternative fuel company cars. (Budget 2009). - From April 2012, the 10% band for cars emitting 120g CO2 per km or less will be removed, and the system of bands will be extended so that they increase by one percentage point with every 5g CO2 per km increase in emissions, from 10%. This 10% band will apply to cars that emit 99g of CO2 per km or less. (2009 pre-Budget report).