Lambert Chapman LLP’s John Smith-Daye reviews the 2012 Budget

I’m sure that my colleagues will be commenting on some of the more important topics covered  in the 2012 Budget, such as the changes to Corporation Tax main rate (only applicable for those companies with profits in excess of £1.5m), reduction in higher rate of income tax from 50% to 45%, child benefit amendments, personal allowance increase and so on. I thought I would bring to your attention a few points detailed in “OOTLAR” – a document dealing with the Overview Of Taxation Legislation And Rates.

All items in italics are direct quotes from that document, which can be found at http://www.hmrc.gov.uk/budget2012/ootlar-main.pdf or from the Budget Speech itself.

1.15 Resettlement payments paid to Members of Parliament (MPs) – From April 2012, the MPs’ Expenses Scheme administered by the Independent Parliamentary Standards Authority (IPSA) will include provision for the payment of a resettlement payment to any MP who involuntarily leaves Parliament after that date. As a consequence of this change, legislation will be included in Finance Bill 2012 to exempt from income tax the first £30,000 of resettlement payment paid by IPSA. The amendment will ensure that these payments are treated in the same way as similar grants previously paid under the House of Commons Members’ Allowances Scheme. The amendment will have effect in relation to any resettlement payment made by IPSA on or after 1 April 2012

(Hmmmm, interesting that this one didn’t actually get mentioned in the Speech.)

Then there was the bit about alcohol duty. As I was listening intently, I thought what I heard was that there was to be no change. But what he actually said was that there would be no change to what had already been announced…….. I quote from the Speech…….

“But today I have no further changes to make to the duty rates set out by my predecessor.”

Meaning that there would actually be increases – see below – but of course, he wouldn’t want to highlight that!

1.34 Alcohol duty rates – Legislation will be introduced in Finance Bill 2012 to increase the duty rates for all alcoholic drinks by 2 per cent above the rate of inflation (based on RPI) with effect from 26 March 2012. This will add 3 pence to the price of a pint of beer, 2 pence to the price of a litre of cider, 11 pence to the price of a bottle of wine, and 41 pence to the price of a bottle of spirits.

Another area of great interest to accountants and small businesses alike is that of Personal Service Companies, and the taxation thereof. OOTLAR states that they are to be looked at in greater detail again, and I wait with some trepidation as to how this is all going to end up.

2.61 Personal services companies and IR35 – The Government is bringing forward a package of measures to tighten up on avoidance through the use of personal service companies and to make the existing IR35 legislation easier to understand. This will include HMRC strengthening specialist compliance teams, simplifying the way IR35 is administered, and consulting on proposals which would require office holders/controlling persons who are integral to the running of an organisation, to have PAYE and NICs deducted at source.

As has become tradition in the recent past, most beneficial items have been well flagged up before the Speech, and most detrimental items will continue to be hidden or blamed on the previous Administration.

I really must get some treatment for my cynicism. Or is it realism?

We have a Movember winner

All is back to normal with the top lips of most of the Lambert Chapman LLP “Hairy Accountants – Continued” team following our moustache growing exploits during Movember. On 30^th November our judging panel of Gill Philpott, Sue Stedman, Tracey Yeo, Jacqui Ford and Debbie Monk visited each team member to assess their achievements. After deliberations Chris Harman was awarded a silver medal and John Smith-Daye the blue riband for their individual achievements. Thankfully no booby prize was awarded!

So it is over to you to decide if they got their deliberations correct and maybe add a few pounds to that we have already raised. If yopu want to donate click the logo to go to our page on the Movember site. 

We didn’t set out to break the bank with our fundraising but Nick and John would like to thank all those that generously donated funds to them at various functions that they attended. They also included current sufferers who were pleased that we were spreading the word.

As we said earlier most top lips have returned to normal but for our winner there was a further dare to undertake. Our Maldon neighbours Bright & Sons challenged John to remove half and have what remains painted blue which he dutifully did on Friday.

As we write we understand that the half remains but the blue has disappeared so we feel duty bound to share with you how it looked!    

Have you seen these Men? Or has anyone got a cowboy hat?

Week three and we’re shaping up to participate in a remake of the western The Long Riders and without any consultation most of us have taken on a similar style of moustache. We think that he challenge allows for excess and most of us have decided to go wild just to see what develops.

The thing about growing a Mo is that you forget that it’s there until you get a strange look from someone you meet. That gets worse if you’ve gone to badminton after forgetting your trainers so end up with Mo, England shirt, shorts and work shoes…..

So without further ado let’s take a look at the facial art that makes up The Hairy Accountants team.

Team Captain Nick was both delighted and astonished when he picked up £274 worth of donations at his golf society meeting last week. Clearly a tribute to looking ridiculous or being brave enough to leave the house – that decision is yours!

After considering Mike to be our serious contender for victory there is concern growing that despite an excellent effort that others are creeping up on the blindside to steal his thunder. Nevertheless it’s a fantastic effort from The Legend.

One of those making a strong effort is Lee who avoided a week 2 mug shot whilst out “growing” his Mo on audit. We’ve checked which job he was on and no paint or creosote was sold by the client so it is the real thing!

John is also mounting a strong charge, though having sported a full beard during the 1990’s it was a sure thing that he would. It’s a cracking effort – all he now has to do is decide which of his vintage motor cycle fleet is suits best.

After all the intrigue Sean managed to catch Chris unawares without his paper to show you all what has developed and let’s be honest it’s a cracker. Whilst the majority of us look rather dubious Chris could sport this into the future and no one would bat an eyelid, or would they as he does their tax?

Josh came back from a client last week with an envelope containing cash for his donations. He was really pleased as the job was on target to complete within budget as well!

Like Chris, Duncan’s effort remains a top lip job only but like others of the fairer brigade it is now clearly visible without using the zoom function.

Finally, it doesn’t matter how many times we say Tricky doesn’t want to remove the beard. We’ve told him its got to go to make him a competitior but thus far its fallen onto deaf ears. Maybe this week…..

So there we go. If you want to add a dontation in favour of the team or an individual compeitior please use the link to go to the Movember site and pledge your cash. All monies will be gratefully accepted. Oh and by the way Nick’s booked up the test to see if his tear ducts are still working… but have you?