ARTICLE · 06 APRIL 2011

Budget 2011 - Employment Taxes Issues

Smith & Williamson

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George Osborne’s second Budget had few shocks, although the reduction in the headline rate of corporation tax seemed to have been a well-kept secret. The main theme of the Budget was the reform of the nation’s economy to encourage growth and jobs.

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Introduction

George Osborne's second Budget had few shocks, although the reduction in the headline rate of corporation tax seemed to have been a well-kept secret.

The main theme of the Budget was the reform of the nation's economy to encourage growth and jobs. Besides the reforms prompted by the Office of Tax Simplification's (OTS) reports, the Chancellor is anxious that the UK should be a location which appeals to international businesses. However, we wait to see whether the reforms now underway are sufficient to tempt businesses to move here.

Several changes in the income tax and NIC rates for 2011/12 were announced last year which means anyone earning over £42,475 pa will be paying more in income tax and national insurance from 6 April 2011, so they will certainly be feeling the pinch.

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