Latest News - June 2010
The Budget 2010
22 June 2010
Chancellor of the Exchequer George Osborne delivered his first Budget less than three months after the final Budget of the last parliament. The Conservative Party had promised an ‘emergency’ Budget during the election campaign, with a view that quicker action was needed to bring down the UK’s record budget deficit. While the recession officially ended in the last quarter of 2009, recovery has been sluggish and Mr Osborne, together with his coalition partners from the Liberal Democrats, has had to balance the need to raise taxes and cut spending with the dangers of provoking a ‘double dip’ recession.
State Pension Age and National Insurance Contributions
HMRC are reminding employers to take care when deciding whether or not their employees need to pay national insurance contributions (NICs). Employees do not need to pay NICs on reaching State Pension age (SPa). Some payroll software warns employers as women approach age 60 to check their national insurance status as previously women would have been exempt from the employee contribution from age 60. This warning may now be being issued too early.
Budget Date Announced
The new coalition government is settling into office and a date has been announced for the emergency Budget. Chancellor of the Exchequer George Osborne will present the emergency Budget on Tuesday 22 June 2010.
Changes To The Advisory Fuel Rates From 1 June 2010
To reflect the increase in fuel prices, HMRC have issued new advisory fuel rates for employees driving employer provided cars. These take effect for all journeys undertaken from 1 June 2010, so employers using the advisory rates should advise affected employees and update any expense forms as soon as possible.
Child Trust Fund To Be Cut
The government has outlined plans to make changes to the Child Trust Fund as part of plans to cut £6 billion in expenditure.
