Employees Face Budget Disappointment

The first Budget of 2010 may be just two weeks away, but good news for employees is likely to be a lot further off.

That’s the view according to Tony Moorby, director of tax at the Bristol office of PKF who says it is very unlikely that increases in National Insurance Contributions (NIC) scheduled for 2011/12 will be abandoned.

Tony explains: “The Chancellor has to prove to the city and world currency markets that he is serious about cutting the Government deficit – so this is likely to be a ‘serious’ Budget with few breaks for employees.”

In addition to further attacks on perceived tax avoidance, PKF expects the Chancellor to consider means of reducing the public deficit. Tony explains that this might mean lowering the threshold for the 50% income tax rate to apply, taking away personal allowances at lower levels of pay or bringing forward the 1% NIC rate rise to the coming year.

Tony added: “Mr Darling has a difficult balancing act on the eve of a General Election and since it is hard to see him attacking the lower paid, that leaves tax avoiders and the well-off as obvious targets.”

Post Budget Seminar

Business people from across Bristol wanting to find out more on the budget and how it will impact their business can attend a free Budget Breakfast Seminar at 8.00am on Thursday 25th March 2010.

Taking place at PKF’s office in Clifton, Tony Moorby, director of taxation at PKF, will consider the effect of the measures that the Chancellor will announce in his Budget the previous day.

In addition James Pickett from Barclays Foreign Exchange Solutions will look at the economic implications of the budget and potential foreign exchange and interest rate strategies for SME businesses.

The seminar is taking place at Pannell House 6-7 Litfield Place Clifton. To register complete the please email margaret.mitchell@uk.pkf.com