5 April 2010 Tax year-end.

19 April 2010 Final payment 2009/10 PAYE

19 May 2010 Final Filing date for 2009/10 PAYE data.

  6 July 2010 Final Filing date for 2009/10 P11D forms.

All VAT registered businesses with an annual turnover in excess of £ 99,999, with effect from periods beginning on, or after 1 April must file and pay electronically.

HM Revenue & Customs will charge interest on late payment of employers' PAYE. It is more important that payments are made on/before 19th of the month following. 

Many Clients have their remuneration fixed yearly in March, in such cases all PAYE will be due paid by 19 April. Such clients should be prepared to say so.

Generally, it may be good to make a nil return for any month for which no payment is due.

Doctors' Sick Notes are to be replaced by "Fit" Notes, effective from 6 April. These should give guidance regarding what work the employee may be capable of carrying out and how the employer may assist it.

For very exceptional cases, it is government intention to have employers pay for up to 26 weeks' worth. This new measure, "Additional Paternity Leave & Pay," cannot apply before November 2010. There seems no end to what the employer is to be asked to do.

  = US    $ 1.4913

Those with 2010/11 gross incomes marginally around the thresholds of £ 100,000, or £ 150,000 seem bound to end up with a tax end of year liability or over-payment. This is because, except for the most straightforward of cases, it must be a practical impossibility for their PAYE codes to be correct. 

The increased Annual Investment Allowance may prove to be a real boost to the economy; the proposed National Insurance increase in 2011 is not.

The ISA allowance of £ 10,200 is left as before, except for being subject to some complication for maximum monthly savers.

Banks, or bankers, were mentioned no less than 37 times in the Budget speech. All three political parties have plans to rein-in their activities. Whilst such may be popular with the electorate, they should remember that this industry is actually vital to the UK economy; it should not be stifled. Furthermore, additional costs imposed on banks will likely be reflected in charges

This Bulletin is produced rapidly, it could contain errors. Note that the Budget proposals are not law until enacted fully by Parliament. It is also possible that some measures could be altered after the general election.

In the last Budget before a general election, Chancellor Darling advised that the overall effect of the recession so far was a 6% reduction of the UK economy. He revised his forecast growth for this year to be between 1% and 1.5%. For 2011, growth was forecast at 3% to 3.5%. Current monetary inflation was noted at 3%, but is expected to decline to 2% by the beginning of2011. To protect the economic recovery, the Chancellor insisted that real public spending cuts will not be made before 2011. As a result government borrowing this year will be £ 167bn.  Most of the tax rates and thresholds were already known, but holding the Capital Gains Tax rate and doubling the amounts of Annual Investment Allowance and that available for CGT to retiring entrepreneurs were surprises.

Income Tax

Ensure any available personal allowances and standard rate bands are used

If you have gains but no tax liability consider realising them in 2009/10 to avoid potential charge in 2010/11.  You could re-invest in the same asset(s) after a short period. This could be sensible too if you have liability but would not if split between husband and wife.

There is more detail on the website.

Detail below is to be found also on the taxation pages.

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