Business News for 28th April 2009 :: "A Budget which directly and obviously hits small business" So commented Giles Mooney, renowned tax expert who was presenting at Myers Clark Budget Breakfast briefing at Moor Park Mansion.

Certainly a speedy recovery will be a challenge, with the UK apparently needing to meet a £43 billion annual interest charge.

David Gauke, local MP for South West Hertfordshire, commented during his presentation that
“This will be seen as a watershed Budget - the final admission that the policies of the last 12
years have led to a debt crisis that will dominate politics for the next decade. Myers Clark’s
event was an excellent opportunity to discuss the measures contained in the Budget and the new
environment in the public finances.”
According to Giles, “Any Budget trailed as taking from the rich to give to the poor will see
difficult times for the self-employed and small companies.” This was manifested in the Budget
through increased National Insurance for everyone earning over £20,000, tightening up of
complex rules regarding calculation of goodwill on the sale of a business, further changes to
capital allowances and rules about disposal of company cars. In essence, it appears that getting
money out of a small business will become more expensive… and more complex.
Larger companies have not escaped the attention of Mr Darling either, and proposed legislation
regarding “tax accountability” means that senior accounting officers of larger companies will
need to certify that their company’s accounting systems are adequate for purpose – or risk being
personally liable for penalties imposed by HMRC.
Myers Clark, Chartered Accountants in Watford, urges anyone with a business, a car, a house, or
a family, who is living in the UK on 23 April 2009, to take professional advice before the pain
starts to seriously bite in 2010.
Robert Marsden, Partner at Myers Clark, said: “Local businesses need the sort of insight that
Myers Clark provided for them at our Budget briefing on Thursday. Now, more than ever,
businesses and individuals need to plan ahead and consult a professional firm of Chartered
Accountants like Myers Clark to minimize their tax liabilities and make sure their hard-earned
cash doesn’t all end up in the public purse."

“A Budget which directly and obviously hits small business”
So commented Giles Mooney, renowned tax expert who was presenting at Myers Clark’s
Budget Breakfast briefing at Moor Park Mansion.
In Wednesday’s announcements, a very optimistic Chancellor stated that, “from 2011, I am
forecasting that the economy will continue to recover, with growth of 3.5% from then on.” Some
commentators have different views, of course and only time will tell how the UK will perform.
Certainly a speedy recovery will be a challenge, with the UK apparently needing to meet a £43
billion annual interest charge.
David Gauke, local MP for South West Hertfordshire, commented during his presentation that
“This will be seen as a watershed Budget - the final admission that the policies of the last 12
years have led to a debt crisis that will dominate politics for the next decade. Myers Clark’s
event was an excellent opportunity to discuss the measures contained in the Budget and the new
environment in the public finances.”
According to Giles, “Any Budget trailed as taking from the rich to give to the poor will see
difficult times for the self-employed and small companies.” This was manifested in the Budget
through increased National Insurance for everyone earning over £20,000, tightening up of
complex rules regarding calculation of goodwill on the sale of a business, further changes to
capital allowances and rules about disposal of company cars. In essence, it appears that getting
money out of a small business will become more expensive… and more complex.
Larger companies have not escaped the attention of Mr Darling either, and proposed legislation
regarding “tax accountability” means that senior accounting officers of larger companies will
need to certify that their company’s accounting systems are adequate for purpose – or risk being
personally liable for penalties imposed by HMRC.
Myers Clark, Chartered Accountants in Watford, urges anyone with a business, a car, a house, or
a family, who is living in the UK on 23 April 2009, to take professional advice before the pain
starts to seriously bite in 2010.
Robert Marsden, Partner at Myers Clark, said: “Local businesses need the sort of insight that
Myers Clark provided for them at our Budget briefing on Thursday. Now, more than ever,
businesses and individuals need to plan ahead and consult a professional firm of Chartered
Accountants like Myers Clark to minimize their tax liabilities and make sure their hard-earned
cash doesn’t all end up in the public purse.”

The following areas reflect some of the most significant Budget changes:
• Extra personal allowances for many, but lost allowances and significantly increased tax
rates of 50% and even 60% for those at the higher end

• Restriction of higher rate relief for some pension contributions.
• A new 40% first year capital allowance for 2009/10 only (and enhanced loss relief) which
may help a few businesses

• Increased contribution limits for ISAs.

• Far less favourable capital allowance rules for cars, based on CO2 emissions.

• £2,000 allowance when you trade in a car you have owned for more than 2 years (and
which is over 10 years old) for a brand new one.

A full briefing of the Budget is available on request by emailing
gil.moolenaar@myersclark.co.uk

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