News from Cryer Sandham Limited
Business and financial news
March 2009 Newsletter
1. 2009-2010 Tax Rates
For 2009-2010 the annual basic tax free allowances for each individual are as follows:-
National Insurance £5,720
Income Tax £6,475
Capital Gains Tax £not yet advised (likely to be £10,000)
Inheritance Tax £325,000
The basic rate of income tax remains at 20% and the higher rate of tax remains at 40%. The earnings threshold for the change from basic to higher rate tax has been increased from £34,800 to £37,400.
National Insurance rates remain at 8% for the self employed (dropping to 1% on profits over £43,875), 11% for employees (dropping to 1% for earnings over £43,875) and 12.8% for employers.
In response to the current economic climate the planned increase in the corporation tax rate for small companies from 21% to 22% has been postponed for 12 months.
2. Directors’ Duties
As there has been recent changes to the Companies Acts we thought it would be useful to remind directors of some of their duties under the Acts.
General fiduciary duty
A director has a statutory duty to act in the way he or she considers in good faith to be the most likely to promote the success of the company for the benefit of members as a whole. In fulfilling this duty, the director must, as far as is reasonably practicable, have regard to:
The duty of care and skill
• The duty to be independent of others not involved in the decision making within the company.
• To avoid situations where s/he has or could have a direct or indirect interest that conflicts with the interest of the company.
3. Employment Law update
When using the services of others a number of important factors depend on employment status of that individual. The most important of these are:-
• What minimum statutory rights they have
Get these wrong and you are likely to end up with costly action being brought against you by the individual themselves or possibly HMRC
For all employers it is now universally recognised that there are 3 categories of employment:-
a) The employee
b) The worker
c) Self employed