Well the dust is settling on the new coalition Government’s Emergency Budget and having had some time to reflect on its impact on our clients, I’m feeling reasonably positive.
Whilst we’re all undoubtedly going to feel some pain on a personal level, the budget seemed to generally favour small business. The proposed reductions to corporation tax will mean that it will become cheaper for contractors and freelancers to operate via their own limited company and net income will increase as a result. This is improved further when you consider the increase in VAT to 20% from 4th January 2011.
A lot of our clients work in the public sector and will inevitably feel nervous about the impact of such brutal cuts to departmental budgets. However, a recruitment freeze on permanent appointments in the public sector could lead to an increase in contract work as freelancers (without their expensive public sector pensions!) are bought in to complete critical projects. We can but hope.
We’ve just published our full guide to the emergency budget. If you’d like to understand how it will affect you and your business, download your copy below.
ClearSky Accounting emergency budget guide
Share this content
![[Slashdot]](http://slashdot.org/favicon.ico)
![[Digg]](http://digg.com/favicon.ico)
![[Reddit]](http://reddit.com/favicon.ico)
![[del.icio.us]](http://images.del.icio.us/static/img/delicious.small.gif)
![[Facebook]](http://www.facebook.com/favicon.ico)
![[Technorati]](http://technorati.com/favicon.ico)
![[Google]](http://www.google.com/favicon.ico)
![[StumbleUpon]](http://www.stumbleupon.com/favicon.ico)
Tags: budget, contractors, corporation tax, emergency budget, freelancers, public sector, VAT
Loading ...
June 23rd, 2010 by Susie Lee-KilgariffWell the dust is settling on the new coalition Government’s Emergency Budget and having had some time to reflect on its impact on our clients, I’m feeling reasonably positive.
Whilst we’re all undoubtedly going to feel some pain on a personal level, the budget seemed to generally favour small business. The proposed reductions to corporation tax will mean that it will become cheaper for contractors and freelancers to operate via their own limited company and net income will increase as a result. This is improved further when you consider the increase in VAT to 20% from 4th January 2011.
A lot of our clients work in the public sector and will inevitably feel nervous about the impact of such brutal cuts to departmental budgets. However, a recruitment freeze on permanent appointments in the public sector could lead to an increase in contract work as freelancers (without their expensive public sector pensions!) are bought in to complete critical projects. We can but hope.
We’ve just published our full guide to the emergency budget. If you’d like to understand how it will affect you and your business, download your copy below.
ClearSky Accounting emergency budget guide
Share this contentTags: budget, contractors, corporation tax, emergency budget, freelancers, public sector, VAT