Omega Accountancy has reviewed and analysed the Chancellor’s March 2008 budget and have provided commentary and opinion in the section. The affects on both small and larger businesses are summarised, together with likely future measures which may be introduced in future budget statements.
In seeking to provide value to businesses within our budget section we offer advice and planning information which can help companies, partnerships and sole traders achieve efficient tax strategies for their financial well-being.
Good tax planning should take place in advance of the significant events which might give rise to a charge and therefore we strongly recommend that regular tax check-ups are performed on your personal and business affairs.
Budget Summary
The Chancellor’s first budget was a significant test of how he would approach certain aspects of the economy and in particular, provide businesses with clues on where he might focus future statements.
His first budget speech saw environmental issues at the forefront of the issues he sought to address providing a one year free car tax rate for zero and low emitting vehicles.
So as to provide something for standard car owners the Chancellor moved back a planned increase on petrol and diesel duties for six months. The extra amount will now be levied in October 2008 and not March as widely reported previously.
The global credit crunch was cited as the main factor for this delay and the Chancellor went to great lengths to identify the current and further potential threats which the present economic conditions could pose towards the UK.
Treasury expectations for both economic growth and public sector finances were reported with adverse revisions. Growth estimates were down to 1.75% from an original medium value of 2.75% and government debt was forecast to reverse an anticipated fall and actually increase to £43 billion.
Some much debated provisions such as the inclusion of non domiciles in to UK taxation system and alterations to capital gains tax were introduced. Whilst many were critical of these measures in their entirety, some leading business groups viewed tackling these issues as a positive step towards sound fiscal footing.
