Business News - March 2010

24 March 2010

Chancellor of the Exchequer Alistair Darling delivered the last budget of this parliament at a time when the focus has shifted slightly from tackling the recession to how to deal with the large amounts of debt built up in doing so. While the economic data over recent months has been decidedly mixed, most economists agree a recovery of sorts is under way for now, although some fear the economy could slide back into recession unless a credible plan for dealing with the budget deficit is presented. With a general election only months away, normally a ‘giveaway’ budget could be expected, but the state of the public finances has largely prevented this.

According to HMRC statistics a record number of taxpayers filed their Self Assessment tax returns online this year.

HMRC are warning taxpayers to be vigilant as there have been several reports of scam emails offering a tax repayment. Taxpayers should not respond to any email promising a tax repayment.

HMRC has announced that they will launch a new method of paying tax liabilities, known as Managed Payment Plans, in April 2011.

HMRC have announced a new initiative to reduce student loan over repayments for those ex students who repay their loan through PAYE deductions.

HMRC have updated their guidance on the issue of multiple or incorrect PAYE tax codes to some employees following the introduction of their new National Insurance and PAYE computer system.

The Vehicle Scrappage Scheme is a voluntary scheme for motor dealers under which participating dealers give buyers a £2,000 discount off the purchase price of a new car (or certain types of small van) in exchange for scrapping their old qualifying vehicle.

Government figures released show that the inflation rate increased to 3.5% in January 2010 from the previous month’s figure of 2.9%.