Tax predictions for 2010

Do you get the feeling that we haven't had the worst of the current financial crisis?

Two certainties for this year are (1) there will be a general election and (b) the winners will introduce some heavyweight tax policies to try and reduce the eyewatering £800 billion national debt.

Here are One Accounting's predictions for the first post election budget.

(1) VAT to increase to 20%

At 17.5%, our VAT rate is one of the lowest in Europe. As VAT is paid over quarterly, a swift increase to 20% by Mr Osbourne or Mr Darling will give a quick injection of cash into HMRC's reserves.

(2) Capital Gains Tax to increase to 30%

At a current rate of 18% (or 10% for entrepreneurs), the CGT rate is out of touch with the soon to be top rate of income tax of 50%. Expect a jump to 30%, midway between the 20% or 40% income tax that most UK taxpayers currently pay.

(3) Taxing the Skies

Our appetite for foreign travel shows no signs of reducing. Air travel is currently VAT free and is certain to rise. Don't bet against VAT being added to air travel or a hike in fuel surcharges.

(4) Interest on late payments to rise

HMRC will be charging interest on late PAYE payments from 6th April 2010. With tax revenues falling, the taxman will be keener than ever to get the payments in on time. Expect increased penalties, interest and general HMRC interference for anyone who pays their VAT, Income & Corporation Tax and PAYE late.

(5) Tax benefits for green technology

As Oil prices continue to rise, the government will offer greater tax incentives for businesses and private individuals to invest in green technologies.

Santander - Free Business Banking

Whilst paying in junior's hard earned penny jar contents into his savings account at the Abbey (now Santander) branch on Shandwick Place, my eye was caught by their free business banking for life offer.

I'm not sure what happens if you actually want to pick the brains of a bank manager, but it sounds like a decent offer.

One Accounting - Live at Centotre

Here's a three minute presentation by Chris on what we do at One Accounting.

This was filmed at the 6 degrees networking breakfast event at Centotre in Edinburgh in February 2010.