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Howlader & Co Blog

Our budget views in blue: Income tax reliefs (e.g. sideways loss relief)

22nd March 2012

Sole trade losses and gift aid These are being capped. Before, if a sole trader started a business and made opening year losses or other trading losses for example, he could relieve these against other income (sideways loss relief). This is now being restricted to the greater of 25% of income or £50,000. The same rules apply to gift ...read more

Our Budget views in blue: Age-related allowances frozen

22nd March 2012

For 2013/14. People over the age of 65 and 75 have  higher and higher still personal allowances. This is being phased out gradually. By 2015 it is likely to have disappeared altogether. There is no escaping the fact that pensioners are comparatively worse off. This is a decision Mr Osborne may well regret (looking at today’s tabloid headlines).  

Our budget views in blue: Income tax

22nd March 2012

Highest rate reduction to 45% (from 50%) from Apr 2013 for incomes over £150k. Highest dividend rate reduction to 37.5%   The 50% income tax rate was somewhat punitive and the amount of tax raised debateable so we welcome the slight reduction. The thinking is that more will be raised this way (higher declaration). However, we cannot understand amounting this ...read more

Our budget views in blue: Small businesses cash accounting

22nd March 2012

If a business is under the VAT registration threshold (£77,000) they can account and pay tax using a cash accounting scheme This is probably our favourite bit of the budget and one we had been hoping for for years. To explain: before, a company declares income as soon as the invoice is made – or before  – and ...read more