This week, Alistair Darling delivered his Budget Report to Parliament on 22 April 2009. The details of the Budget have been much discussed in various news media over the last few days.
The Chancellor announced a one-off increase in a week’s pay for the purposes of calculating the amount of statutory redundancy from £350 to £380. Accordingly, the maximum statutory redundancy payment will rise from £10,500 to £11,400. Schedule for implementation hasn't yet been announced but the Chancellor included changes to personal taxes and the tax treatment of pension contributions for high earners.
From 6 April 2010 the top rate of income tax for individuals (for those with a taxable income over £150,000) will increase to 50%.
From 2010 the basic personal allowance for income tax with net income over £100,000 will be adjusted.
From April 2011 the availability of higher rate relief on contributions to registered pension schemes will be restricted.
From 2011 significant changes to company car tax will come into effect.
In reference to all the above, implementing legislation will be required.
You can access the full text of the Budget by clicking here.
For those of you who would like to know how the Budget impacts on you personally, the BBC has provided a useful Budget calculator that has been developed with accounting firm, KPMG LLP (UK). You can access the BBC’s Budget calculator by clicking here.