Chancellor of the Exchequer Alistair Darling delivered the 2008 Budget on Wednesday 12th March 2008. A selection of the key issues which impact on the individual are summarised below:

• New 20% Income tax replaces the current 10/22% rate
• Increase in personal allowances
• National Insurance threshold increase from £670 to £770 a week
• Income splitting legislation proposals deferred to 2009
• Increases in tax free individual saving allowances (ISA’s) to £7200
• Capital gains tax changes to standard 18% with entrepreneur relief at 10% for first £1m of lifetime gains
• Non-domiciled taxpayers charge of £30,000 introduced from 6 April for those who have been resident in the UK for 7 years or more.
• Postponement on stamp duty on shared ownership houses until people own 80% of their home
• Continuation of transfer of unused Inheritance Tax allowances with increased threshold of £312,000
• Delay in 2p rise in fuel duty for six months
• Increases in taxes on alcohol and tobacco, 4p on beer, 3p on cider, 14p on wine, 55p on spirits, 11p on 20 cigarettes, 4p on five cigars, 11p on 25 grams of rolling tobacco, 6p on pipe tobacco
• Major reform of car tax from 2009 with first year regime for new cars, high polluting cars will be forced to pay more tax
• Air passenger duty scrapped in favour of flight tax

To read more on the 2008 Budget , click the links below :
FT budget 08 microsite

Times budget 08 microsite

Telegraph budget 08 microsite

News budget 08 microsite

Chancellor’s budget 08 speech

The 2008/09 Tax Year commences on the 6th April 2008

• New Personal allowances will start from April 6th including your savings allowances
• If you haven’t used your tax free savings for the 2007/08 tax year, try to utilise them before it is too late!
• Statutory sick pay increases to £75.40 per week
• SMP/SPP/SAP increases to £117.18 per week

Click here to download SmartWork’s Tax Tips Calendar 2008/09.
Click here to download SmartWork’s  Tax Allowances Overview

• In the notes that accompany the Budget speech it has been announced that the HMRC will be monitoring Umbrella companies and looking at their dispensations.  SmartWork holds a dispensation from the HMRC and retains evidence of all expenses claimed for full compliance.

From March 1st 2008, after registering as a sub-contractor with the HMRC’S Construction Industry Scheme (CIS), SmartWork joins the few umbrella companies allowed to provide a PAYE Umbrella service to contractors working in the Construction Industry. Contractors wishing to work on a PAYE basis  in the construction industry via SmartWork will now be entitled to the full employee benefits of being a SmartWork employee including access to the Corporate gym membership, company pension and childcare voucher scheme.

• PAYE Umbrella online forum and ratings vehicle, Umbrella Supermarket, has formally endorsed SmartWork  (ranked as one of the leading PAYE umbrella companies) as a compliant and ethical payroll umbrella company.
  
  

• SmartWork is proud to be sponsoring The Association of Technology Staffing Industry Awards  2008. The Awards recognise agencies in the IT, Telecom & Engineering Sectors for their Professional Values and Innovation.