Income tax
Tax allowances, tax credits and national insurance contributions
The absence of the September RPI figure – because
of the unusually early Pre-Budget Report – means that
details of the tax allowances, the tax credits and the 2008/09
NIC thresholds could not be issued on 9 October and are not
included in this summary.
Fuel benefit charge
The fuel benefit charge multiplier for employees’ ‘free
fuel’ will rise by £2,500 to £16,900 from
6 April 2008. This is the amount used as the basis for calculating
the taxable value of fuel provided by an employer for private
mileage in a company car.
Self-assessment
The threshold below which taxpayers do not need to make
payments on account in January and July each year of their
income tax liability will be increased from £500 to £1,000
from 2009/10.
The turnover limit for submission of ‘three-line
accounts’ doubles to £30,000 beginning this year
and shorter self-employment pages in their tax returns are
introduced for businesses with a turnover below the VAT registration
threshold.
There will be consultations on how best to collect tax on
benefits in kind and expenses through the payroll, as well
as on the removal of the £8,500 a year income threshold
at which most benefits in kind become taxable.
Offshore funds
The Government issued a discussion paper about the tax treatment
of offshore funds, proposing the revision of the categories
of distributor and non-distributor funds, as well as a number
of other changes.
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