Plummer Parsons Chartered Accountants Mini Guide The Insider November 2011
18 Hyde Gardens Eastbourne East Sussex BN21 4PT 01323 431 200 firstname.lastname@example.org INSIDER plummerparsons NOV insidernov2011This month will seethe Chancellor deliver hisAutumn Statement in responseto the latest economic and fiscaloutlook report from the Office forBudget Responsibility (OBR). We takea look at some of the measures that www.plummer-parsons.co.ukbusiness groups are hoping for as the 29November draws closer. Banking reformAutumN StAtemeNt The Chancellor has been urged to use the Autumn Statement to respond to the Independent Commission onPredictiONS Banking’s (ICB) Final Report and boost competition in the banking sector. Capital allowances29 November will see Chancellor George Osborne taketo the stand to deliver the eagerly anticipated Autumn Business bodies have called for the introduction of 100 perStatement. The UK economy is in desperate need of a cent first year capital allowances for a time limited periodgrowth spurt, despite the recent £75 billion Quantitative of two years.Easing boost, and business groups are already campaigning Corporation taxfor the announcements they want to see. The main rate of corporation tax was reduced to 26 perHere are some of the Autumn Statement rumours and cent from April 2011 in this year’s Budget, and will reducesuggestions that are doing the rounds: by a further 1 per cent each year to 23 per cent in 2014.Credit easing However, the Institute of Directors (IoD) has called for the Chancellor to cut corporation tax to 15 per cent by 2020.It almost certain that ‘credit easing’ will be announced by Growth Reviewthe Chancellor later this month. The formalities of whichhave yet to be decided, but reports suggest that it will The second phase of the Growth Review is due to beinvolve the public sector buying bonds issues by companies announced alongside the Autumn Statement. However,- in an attempt to cut the cost of credit for companies, and business groups have called for it to be reformed, claimingalso boost the supply of credit. it is not currently targeting the most important driversTargeted VAT cuts and NIC holidays of growth. If it goes ahead as planned, the second phase will focus on skills, infrastructure, logistics, medium-sizedThe Federation of Small Businesses (FSB) is calling for the businesses and the rural economy.Government to introduce a targeted VAT cut to encouragepeople to spend in specific areas. The FSB also wants to see What will be announced remains to be seen,an extension of the NICs holiday that is currently available but we will have a full report of the Autumnto qualifying new businesses, to existing businesses across Statement available the day after it has beenthe UK that have fewer than four employees and that delivered. Please contact us for more details.employ up to three more staff.
BuSiNeSS regulAtiON refOrmSPension reforms Unfair dismissal rulesBetween 2012 and 2016 new rules are coming into force The qualification period for the right to claim unfairthat will mean that as an employer, you will have to: dismissal will be extended from one to two years, from 6 April 2012.Automatically enrol certain workers into a pension scheme Please contact us for more information on these regulation reforms.Make contributions on your worker’s behalfRegister with the Pensions RegulatorProvide workers with certain information about the changes and how they will affect them. For example:YOur mONeY Halifax, Bank of Scotland and Birmingham Midshires, are all part of the giant HBOS group, and authorised by the FSA as HBOS Group, meaning that the protection limit is combined and you would only get £85,000 for allAre your savings safe? together.October saw 12 banks and building societies have their Visit www.fscs.org.uk for more information.credit rating reduced, including Lloyds, Santander, RBS,and the Co-operative Bank, prompting many to questionthe safety of their savings. What else does the FSCS cover?The Financial Services Compensation Scheme (FSCS) is As well as deposits, the FSCS also covers individuals andthe UK’s compensation fund of last resort for customers eligible small businesses for:of authorised financial services firms. It covers privateindividuals and some eligible smaller businesses against Insurance policies - 90% of the claim with no upperlosses if a financial institution defaults. There are limits to limit. Compulsory insurance is protected in full.this cover. Insurance broking - 90% of the claim with no upper limit. Compulsory insurance is protected in full.What does the FSCS cover? Investment business - 100 per cent of the firstFor savings deposits held in a bank or building society £50,000 per person per firm (for claims against firmsaccount, the FSCS will cover you for 100 per cent of declared in default from 1 January 2010).£85,000 per person per financial institution. Home finance (for claims against firms declared in default from 1 January 2010) - £50,000 per personWhat classifies as a financial institution? per firm.It is important to note that a financial institution is notnecessarily a bank or building society on its own. Since November’s Money Factsthe financial crisis began, a number of banks and buildingsocieties have merged, meaning that two may only class Current bank rate 0.5%as one financial institution for the sake of the FSCS. Quantitative Easing £275 billionEssentially, a financial institution is separately authorised Schemeby the Financial Services Authority (FSA). Current inflation 5.2% www.plummer-parsons.co.uk