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Tenon Budget Summary 2009

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					A summary of the Chancellor’s 2009 statement




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Tenon The Budget 2009
1               Introduction




                Welcome to our 2009 Budget Book.

                This was a Budget, said the Chancellor, for “continuing to help people through the global
                recession and prepare people for the opportunities of the future”. In particular, he referred
                to a budget of “fairness and opportunity” and the need to “invest and grow our way out of
                recession”.

                The headlines were, of course, the increase in higher rate income tax to 50%, the
                restriction of higher rate tax relief on pension contributions and the withdrawal of the
                personal allowance for “high earners”.

                It was confirmed that VAT would return to 17.5% on 1 January 2010, but we would not be
                surprised if a higher rate was announced later in the year in the Pre-Budget Report.

                We welcome the increase in the amount that can be invested in an ISA to £10,200.

                The one year increase in the rate of capital allowances for investment in plant and
                machinery to 40% will be good news, as is the extension for another year of the ability of
                small companies to carry back trading losses against profits of earlier years.

                We are disappointed, though, that the small companies’ rate of corporation tax remains at
                21% and did not revert to 20%.

                There are some useful relaxations of some of the rules concerning EIS/VCT investment, but
                no changes in the amounts that can be invested.

                There were no changes to capital gains tax, and in particular, no enhancement of
                Entrepreneur’s Relief. Inheritance tax remains unchanged too.

                In the following pages we provide our detailed analysis of all the measures announced. As
                usual, please contact your usual Tenon Tax contact with any queries, or contact one of us.

                Andrew Jupp                                     Andrew Hubbard
                National Head of Tax                            National Tax Policy Director
                andrew.jupp@tenongroup.com                      andrew.hubbard@tenongroup.com




Tenon The Budget 2009
2               Contents




                Personal tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

                Savings, pensions and invesments . . . . . . . . . . . . . . . . . . . . . . . 5

                Business tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

                Employment taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

                Indirect taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

                Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

                Tax administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13




Tenon The Budget 2009
3               Personal tax




                Income tax rates and allowances
                The rates for 2009-10 have already been set and no changes to these were announced in
                the Budget.

                The big surprise was, however, the increase in higher rates for 2010-11 onwards.
                The Chancellor had previously announced that rates would increase in 2011-12 but
                has now brought forward changes by a year – some would say to deliberately wrong
                foot the opposition in what is likely to be an election year.

                There are two main changes. For incomes over £150,000 there will be a new 50%
                rate of tax – previously the Chancellor had indicated that the higher rate would be 45%.
                Secondly personal allowances are to be withdrawn for taxable incomes of over £100,000.
                The withdrawal will be one pound of allowance for every two pounds of income: the effect
                of this will be that the personal allowance will disappear at income of about £113,000.
                (We don’t know the exact figure because the personal allowance for 2010-11 has not yet
                been set) The marginal rate of tax for an employee or self employed individual earning
                just in excess of £100,000 will (including national insurance conributions) be 61%!

                There are corresponding changes to the rates of taxes applying to dividends and trusts.

                Profit extraction
                The introduction of a 50% rate has an impact on the comparison between extracting
                profits by way of dividend or salary. Again the precise calculations cannot be done
                because we don’t know the level of personal allowances for 2010-11 but we can see the
                trend. For companies which pay tax at the lower rate the dividend route is still more
                attractive, but the differential has been squeezed and the rate difference is only about six
                percent. Where companies are paying tax in the margin or at full rate the differential is
                now in the region of only one or two percent. One suspects that this is deliberate. The
                government has been concerned for a long time about the loss of tax where individuals
                extract profits by way of dividend rather than bonuses. For taxpayers not paying at the
                highest rate the dividend route is still generally to be favoured, but it can only be a matter
                of time before we see a similar squeeze at more modest income levels. There is no sign of
                a resurrection of the income shifting rules which were proposed as a counter to this a
                couple of years ago and it may be that the government has decided that the best solution
                to the problem is to keep reducing the differential until there is no fiscal advantage in
                people extracting profits by way of dividend.

                Dividends from non-resident companies
                From 22 April 2009 individuals are entitled to a non-repayable tax credit on foreign dividends.
                Previously the individual had to hold 10% of the shares to qualify for the credit. The effect of
                this is that a basic rate taxpayer will not pay any tax on a foreign dividend regardless of his
                level of shareholding. The rule only applies where the company paying the dividend is in a
                country with a double taxation agreement which has a non-discrimination clause. There is an
                anti-avoidance rule to deny the tax credit where there is treaty shopping, i.e when people
                deliberately divert profits into a regime which has a favorable tax treaty with the UK.



Tenon The Budget 2009
4




                Non domiciled individuals
                Last year saw a complete overhaul of the rules relating to the taxation of non-domiciled
                individuals. There are no major reforms this year but there are a few amendments which
                are largely aimed at tidying up some of the loose ends which such a major change
                inevitably creates.

                The changes are mainly designed to take those individuals with very small amounts of
                foreign income or gains out of the new regime completely. The compliance burden of
                dealing with such small amounts under the extremely complex new rules is out of all
                proportion to any tax which is raised and therefore this is a sensible deregulation measure.

                Personal allowances – non residents
                Those claiming a personal allowance as a Commonwealth citizen will no longer be able to
                do so unless they have an entitlement under another separate provision, such as being an
                EU citizen or being a resident in a treaty country.




                “advice you can count on”




Tenon The Budget 2009
5               Savings, pensions and investments




                Individual savings accounts
                To mark the 10th anniversary of the introduction of the ISA the limit is to be increased to
                £10,200, of which half can be in the form of a cash investment. There will be a phased
                increase: for most people the new limits will apply from next year, but for those aged 50 or
                over at some point in 2009-10 the limit will apply for the current tax year provided that
                the investment is made on or after 6 October this year.

                Tax-favoured investments
                There are no changes to the amounts which are eligible for relief under the various tax-
                favoured investment schemes such as the enterprise investment scheme, but there are
                some minor technical changes which should have the effect of making these schemes
                easier to operate in practice. The most important of these is that companies will now have
                two years to use the money which they have raised through a qualifying issue of shares for
                a qualifying purpose. Currently the rule is that they must have used at least 80% of the
                money within 12 months. There are also more generous carryback provisions.

                Pensions
                There is significant change here. At the moment all personal pension contributions
                (provided of course that they fall within the various limits) are eligible for relief at the
                highest rate of tax. This relief is to be restricted for the highest earners. One of the reasons
                for this is presumably that the government did not want high earners simply to sidestep
                the new higher rates of tax for 2010-11 by making enhanced pension contributions.

                The restriction, which will apply from 6 April 2011, will mean that anybody with gross
                taxable income over £150,000 will see higher rate relief on pension contributions taper
                away, until at £180,000 relief will be restricted to the basic rate – i.e. 20%

                There are however some complex measures that will apply from Budget Day 2009 which
                will have the effect of preventing people making significant changes to the structure of
                their current pension contributions in order to avoid the impact of the new restrictions.
                The details have not been published in full but it is clear that for those with total income of
                over £150,000 in the year of contribution or in either of the previous two years there is the
                potential for a restriction of relief where pension contributions of more than £20,000 have
                been paid (including pension contributions paid on their behalf by an employer) and
                contribution levels have changed. This all looks extremely complex and it is far from clear
                how exactly it will work but high earners who make large pension contributions will need to
                take early advice on the impact that these changes may have on their overall financial
                position.




Tenon The Budget 2009
6               Business tax




                Corporation tax rates
                There are no changes to corporation tax rates. The Chancellor has confirmed the
                postponement of the planned rise in the small companies rate to 22% which was to have
                come into effect on 1 April this year, but he has resisted pressure to reduce the main rate
                from 28%.

                Capital allowances
                As ever the Chancellor has not been able to resist the temptation to make changes to
                the capital allowances system. The main change this year is a re-introduction of a 40%
                temporary first year allowance. This will apply to all qualifying expenditure incurred in tax
                year 2009-10 (year ended 31 March 2010 for companies). The allowance is in addition to
                the £50,000 annual investment allowance.

                There is also a new 100% allowance for businesses purchasing plant and machinery which
                is energy efficient, reduces water use or improves water quality.

                Taxation of foreign profits
                Following extensive consultation and several changes of heart by the government we now
                have the final version of the new foreign profits tax regime. The main features of this are
                as follows:

                > All companies will be exempt from tax on foreign dividends received from July 2009
                  onwards. This aligns the treatment with that of UK dividends. The important point is
                  that this will now apply to all companies whatever their size. Previously it has been
                  proposed that the exemption would not be available to smaller companies.

                > As a quid pro quo a debt cap will be introduced, but only for large companies. The effect
                  of this will to be to restrict interest relief on loans used to finance foreign subsidiaries.

                > The controlled foreign company rules, under which profits of overseas entities can be
                  attributed to parent companies, are to be reformed to remove certain exemptions.
                  This is a natural consequence of the introduction of the general exemption for foreign
                  dividends and is a revenue protection measure to ensure that the new regime is not
                  exploited for avoidance purposes.

                Loss relief
                In the PBR the Chancellor announced a limited 3-year loss carry back facility. In response
                to pressure from business he has extended the relief and it will now also be available for
                losses for tax year 2009-10 (year to 23 November 2010 for companies)

                Although there is unlimited carry back to the previous 12 months, beyond that there are
                now two separate caps of £50K, for each year, on the amount which can be carried back.
                The interaction of this is not straightforward and may not in fact be as generous as first
                thought. Some examples will make this clearer.



Tenon The Budget 2009
7




                Example 1

                PBR 2008 Rules
                Year to 30 October   2006 2007 2008 2009 2010
                                     £,000 £,000 £,000 £,000 £,000

                Profits/(Losses)       40    50     70    (110)   (130)

                                                   (70)     70
                                            (40)            40
                                       40     10     0       0    (130) c’fwd

                Budget 2009 Rules
                Year to 30 October   2006 2007 2008 2009 2010
                                     £,000 £,000 £,000 £,000 £,000

                Profits/(Losses)       40    50     70    (110)   (130)

                                                   (70)     70
                                            (40)            40
                                            (10)                     10
                                       40      0     0       0    (120) c’fwd

                Example 2

                PBR 2008 Rules
                Year to 30 October   2006 2007 2008 2009 2010
                                     £,000 £,000 £,000 £,000 £,000

                Profits/(Losses)       40   120     70    (130)   (130)

                                                   (70)      70
                                            (50)             50
                                       40     70     0     (10)   (130)   (140) c’fwd

                Budget 2009 Rules
                Year to 30 October   2006 2007 2008 2009 2010
                                     £,000 £,000 £,000 £,000 £,000

                Profits/(Losses)       40   120     70    (130)   (130)

                                                   (70)     70
                                            (50)            50
                                            (50)                     50
                                       40     20     0     (10)    (80)    (90) c’fwd



Tenon The Budget 2009
8




                Business payment support service
                The Chancellor announced the business payment support service in the PBR. This has been
                used by many businesses who are experiencing short-term cash flow problems and has
                generally been considered to be a success. The Chancellor has announced an extension to
                the scheme, which will allow a business making current year losses to postpone tax
                payments in anticipation of carrying back the loss.

                Three-line accounting
                Small businesses are allowed to file three-line accounts, which show only turnover,
                expenses and profit, with their tax computations. As an administration burdens reduction
                measure, the turnover limit for eligibility for this simplified filing basis has been increased
                to the VAT threshold (£68K for 2009-2010) and will in future be permanently linked to that
                threshold. The effect of this is that the vast majority of small businesses will be able to file
                three-line accounts.

                Small business tax computations
                The government has been looking at ways in which the accounting requirements for small
                companies could be simplified or linked more closely with the tax rules. After a wide-
                ranging consultation it has been decided that there is no real benefit to business from such
                changes and as a result the proposal has been dropped.

                Groups of companies
                Several simplification measures are proposed for groups of companies. These include a
                relaxation of the rules for notional intra-group transfers and a general simplification of
                group aspects of gains. These are largely technical in nature and are unlikely to have a
                significant effect but will help to remove some anomalies at the edges.

                Associated companies
                Where companies are under common control the marginal relief limits for corporation tax
                are apportioned, with the result that higher tax is payable. These rules have created huge
                problems over the years because they can operate arbitrarily and can often create
                associations with companies which have absolutely no commercial relationship.
                Some relaxations of these rules were announced last year and the government has
                now announced a more extensive review in this area to see if there is a way of defining
                associated companies in a way which only catches cases of real commercial
                interdependence.

                Intellectual property
                There is to be a consultation on the way in which the tax system can be used to encourage
                the development of intellectual property. At the same time a measure is introduced to
                stop exploitation of the existing rules for tax relief on goodwill where there is an intra-
                group transfer which purports to change the character of goodwill from a non-deductible
                item into something which qualifies for tax relief.




Tenon The Budget 2009
9




                Measures to help businesses and individuals facing tax debt
                The government has been consulting for some time on a more flexible approach to
                enabling individuals and businesses to manage the payment of tax. Three measures are to
                be introduced in FA 2009.

                > A new statutory regime for payment plans for income tax and corporation tax will be
                  implemented. Taxpayers will be able to spread tax payments over a period which
                  straddles the normal due date. It has sometimes been possible to agree such
                  arrangements informally with HMRC but now there will be a statutory right to an
                  instalment plan.
                > HMRC will be able collect small arrears of tax through the PAYE system. Strictly at the
                  moment HMRC can only code out employment related items such as benefits in kind,
                  but in future it will be possible to code out all types of tax arrears.
                > HMRC is also given a power to require certain third parties to supply it with contact
                  details of people who owe tax but with whom HMRC has lost contact. There are few
                  details of this at present.




                “making your money work for you”




Tenon The Budget 2009
10              Employment taxes




                Company car tax
                A major overhaul of the system for taxing company cars has already been announced.
                Some minor amendments are made to this in the Budget. For the purposes of the benefit
                in kind scale charge the starting rate scale is reduced from 130g/km in 2010-11 to
                125g/km in 2011-12. This will have the effect of increasing the benefit in kind.

                The car benefit is based on the list price of the car but currently that list price is capped at
                £80,000. This means that the rate of benefit is proportionately lower for very expensive
                cars. The cap is to be abolished from 2011-12.

                Construction industry
                Identifying the boundaries between employment and self employment in the construction
                industry has always been a difficult area and HMRC recently lost an important case in this
                area before the Commissioners. Perhaps as a result of this there is to be a consultation
                which aims to find a long-term solution to what the government describes as the issue of
                “false self-employment status”. This might be thought to be putting the cart before the
                horse, because surely the first thing to do is to determine whether in fact there is such a
                problem. Perhaps it is simply that HMRC does not like where the courts have drawn the
                dividing line.

                Avoidance using employment income legislation
                The government has confirmed their previous announcement that they have, from
                12 January 2009, closed a loophole under which loss relief was claimed for certain
                employment costs, such as compensation payments, where the economic cost did not
                actually fall on the employee.

                Avoidance involving lease premiums
                A long-standing avoidance scheme under which lease premiums were used to reduce or
                eliminate the benefit in kind charge on employer-related accommodation has been
                blocked. Lease premiums for periods of less than 10 years will be treated as rent payable
                over the duration of the lease and thus will now fall into the calculation of the benefit in
                kind charge.




Tenon The Budget 2009
11              Indirect taxes




                VAT
                The Chancellor announced that the temporary reduction in the rate of VAT would come to
                an end on 31 December 2009 and that the rate would revert back to 17.5%.

                As was to be expected there are to be measures to prevent any organisation which cannot
                reclaim all of its VAT artificially taking advantage of the lower rate of 15% on purchases it
                makes before the change which in economic reality relate to a period after the change.
                The measures will cover cases where prepayments exceed £100,000 as well as
                arrangements which involve connected parties, suppliers providing funding for purchasers
                and advance invoicing arrangements where no payment is due for at least six months.

                The mechanism to give effect to these measures is complex. In essence there is an
                additional 2.5% charge due on the date that the VAT rate reverts to 17.5%.

                There are a number of other minor VAT changes including changes to the option to tax
                rules and some alteration to the rules relating to tax points on imported services.

                Extension of temporary increase in threshold for Stamp Duty Land Tax (SDLT)
                on residential property
                In September 2008 the Chancellor announced a temporary increase to £175,000 in
                the SDLT exemption on residential property. This was originally intended to end by
                2 September 2009 but it has now been extended to 31 December 2009. From 1 January
                2010 the limit will be reduced to £125,000.

                Disclosure of stamp duty land tax avoidance schemes
                The current disclosure regime for SDLT is very different to that which applies for direct
                taxes. In the latter there is a clear mechanism, via the use of scheme reference numbers,
                to enable HMRC to identify users of a particular disclosed scheme. By contrast the SDLT
                regime does not require taxpayers to notify HMRC that they have used a scheme. HMRC is
                now to consult on reforms to the SDLT disclosure regime with the aim of finding a
                workable way in which users of SDLT schemes can be indentified by HMRC. It will be some
                time before any new arrangements come into effect but the fact that this consultation is
                taking place is a sign that HMRC is concerned about the extent of SDLT avoidance,
                particularly in the private residential sector.




Tenon The Budget 2009
12              Penalties




                Penalties for late filing of returns or late payment of tax
                A new set of penalties for late filing and late payment of tax has been introduced. These
                complement the new rules for penalties for incorrect returns which were enacted last year.

                Penalties for late filing of income tax or corporation tax returns
                There is an escalating series of penalties depending on the length of the delay in filing

                > An initial £100 penalty immediately after the due date for filing (whether or not the tax
                  has been paid);
                > Daily penalties of £10 per day for returns that are more than three months late, running
                  for a maximum of 90 days;
                > Penalties of 5 per cent of tax due for the return period for prolonged failures (over 6
                  months and again at 12 months); and
                > Higher penalties of 70 per cent of the tax due where a person fails to submit a return for
                  over 12 months and has deliberately withheld information necessary for HMRC to assess
                  the tax due (100 per cent penalty if deliberate with concealment).

                Penalties for late filing of CIS returns
                > A fixed penalty of £100 for failure to submit any return by the filing date;
                > An additional fixed penalty of £200 if any return is outstanding more than 3 months
                  after the filing date;
                > Penalties of 5 per cent of deductions due for the return period for prolonged failures
                  (over 6 months and again at 12 months); and
                > Higher penalties of 70 per cent of the deductions due where a person fails to submit a
                  return for over 12 months and has deliberately withheld information necessary for HMRC
                  to assess the tax due (100 per cent penalty if deliberate with concealment).

                Penalties for late payment of taxes and deductions collected through the
                PAYE system
                > The amount of the penalty will depend on the number of defaults in any 12 month
                  period. The first time the taxpayer defaults, they will not receive a penalty;
                > A second late payment and any subsequent failures in the default period will attract a
                  penalty of 2 per cent of the tax unpaid rising to 5 per cent of tax unpaid;
                > Further penalties of 5 per cent of any amounts of tax still unpaid at 6 and 12 months;
                  and
                > Late payment penalties will not be charged during an agreed time to pay arrangement
                  with HMRC unless the taxpayer defaults or misuses the arrangement.




Tenon The Budget 2009
13              Tax administration




                Further changes to HMRC powers
                Over the last few years the government has been consulting on modernising HMRC
                powers. Much of the legislation relating to income tax, corporation tax, CGT VAT and PAYE
                was enacted in last year’s Finance Act. This year sees an extension of these powers to
                other tax areas, including environmental and stamp taxes, IHT and Petroleum Revenue
                Tax. Broadly speaking the information and inspection powers for direct taxes and VAT have
                been extended to these further taxes, but it is notable that the new record keeping
                requirements have not been extended to IHT. This is in response to a number of concerns
                that it was unreasonable to impose such an obligation on executors and personal
                representatives who may have had no involvement in the deceased’s tax affairs.

                Naming and shaming
                As widely predicted HMRC is to be given the power to publish the names of people who
                deliberately default on their tax obligations. The vast majority of cases of evasion are
                dealt with under civil, rather the criminal, procedures and therefore nothing currently
                comes into the public domain. HMRC will in future be able to publish the names of those
                who have deliberately understated tax of more than £25,000. Publication will not apply in
                cases where taxpayers have come forward voluntarily to HMRC to admit to arrears or
                where they make a full disclosure after an initial Revenue challenge. The new rules will only
                apply to deliberate understatement: they will not apply in cases where additional tax
                becomes payable after taxpayer carelessness or as a result of a dispute over a technical
                matter.

                Monitoring of serious tax defaulters
                As well as the proposals for “naming and shaming” there are separate proposals for
                those who incur a penalty for deliberate evasion in respect of tax of £5,000 or more.
                Such defaulters will be required to provide more detailed information to HMRC in their
                accounts for the following five years to demonstrate that they have put their affairs in
                order.

                Personal accountability of senior accounting officers in large companies
                As part of the pressure towards greater accountability in large corporates HMRC will, under
                legislation to be introduced in FA 2009, introduce a framework under which a nominated
                person in each large company or group must take responsibility for the accuracy of the
                company’s tax reporting.

                A large company, which for this purpose is based on the Companies Act 2006 definition,
                will be required to notify HMRC of the identity of their senior accounting officer. That
                officer must ensure that there are adequate processes to capture the information required
                to complete the company’s tax returns and certify this each year to HMRC. Where there
                are inadequacies in a company’s process the accounting officer must specify these and
                confirm that these have been notified to the company’s auditors.

                The new rules will be backed up by a penalty regime under which penalties can be
                imposed on the accounting officer personally and/or on the company.



Tenon The Budget 2009
14




                The new obligations will apply for accounting periods beginning on or after the date of
                Royal Assent to the Finance Bill 2009, which is likely to be in early July. There may be a
                need for transitional arrangements but these are not spelled out in the press release.

                Reform of the tax avoidance disclosure regime
                As well as the specific changes for SDLT which we refer to earlier in this publication there is
                also an announcement that the disclosure regime for direct tax, which requires promoters
                to give HMRC details of avoidance schemes which they promote, will be reformed. No
                details are given, but it understood that HMRC are concerned that the definitions within
                the disclosure rules do not currently operate to force disclosure of a number of schemes
                which it believes should be disclosable. It is also likely that the penalties for failure to
                disclose will be increased.

                No dates are given for the changes to come into effect and it is intended that there will be
                a period of consultation before any changes to the regime are enacted.

                Second offshore disclosure initiative
                In 2006-7 HMRC introduced an offshore disclosure initiative under which taxpayers who
                had deliberately evaded tax on offshore income were given a chance to make a full
                disclosure with a guaranteed penalty rate and little risk of a detailed investigation.

                The government has announced that it will launch a new offshore disclosure initiative in
                the autumn of 2009. No details are given other than the fact that the penalty will be set a
                level which is slightly lower than the penalty which could be expected under the normal
                rules. Given that penalties for deliberate suppression of income have been very
                significantly increased under the new penalty regime it is likely that the level of penalty on
                offer under the new initiative will be much higher than the 10% which was available under
                the original initiative.

                Working with tax agents
                HMRC has published a consultation document with the innocuous title working with tax
                agents. This is in fact a potentially far-reaching review of the whole way in which tax agents
                interact with HMRC. At the moment tax agents are not regulated and HMRC is obliged to
                deal with any person whom a taxpayer has instructed to represent him or her. HMRC is
                concerned that some agents, particularly those with no professional qualifications, are not
                competent to prepare tax returns and computations and has therefore launched this
                consultation to look at ways in which more controls may be put on the work of tax agents.
                The document does not set out any specific proposals but invites comments on a number of
                possible options. Those include a registration scheme for agents; the imposition of financial
                penalties on agents who make errors in clients’ tax returns and suspending an agent’s
                authority to act until the agent has made performance improvements.

                The document also looks at the approach that other jurisdictions, particularly the USA and
                Australia have taken to the issue. The consultation will run until 7 August and draft
                legislation is expected in the PBR in the autumn.



Tenon The Budget 2009
15




                Interest on overdue or underpaid tax
                At the moment each of the main HMRC taxes has very different rules for the way in which
                interest is charged on late payments and credited on repayments. Changes are proposed
                to introduce a single set of rules which apply across all of the taxes. These will be
                introduced over a period of two years.

                The main practical change will be seen in PAYE. At the moment interest on late payment
                of PAYE only starts to run from 19 April after the year end. This will be changed so that
                interest will be charged from the month in which the PAYE was due, but this rule will not
                come into effect until 2010-11.

                Taxpayers’ charter
                The government has confirmed that it will be introducing a clause in the finance bill to
                give legal effect to the proposed taxpayers’ charter. A draft charter is currently out for
                consulation and has been widely criticised. The press release gives no indication of
                whether the government intends to rethink its approach to this important initiative.




                “keeping the tax man and you happy”




Tenon The Budget 2009
16




                Notes




Tenon The Budget 2009
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                                                           42       9
                                                        34 24 26 38
                                                      3   43 25
                                                 37 32          11
                                               7              8




Tenon The Budget 2009
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