What does the Budget mean for architects?
Clare Hartnell, head of the property and construction department at Grant Thornton, analyses the 2009 budget for architects
- Anyone earning over £150,000 will be hit by the 50 per cent income tax rate (hidden in the footnotes of the fine print is the assertion that this change will generate £32.4 billion in tax yield by 2012 /13)
- Drivers, unless they are buyig a new car: fuel duty increase by 2p per litre (and up by a further 1 p per litre above indexation each April for the next four years)
- Doubling of business capital allowance to 40 per cent coupled with a three year carry-back means that people can reclaim tax they have already paid. this may stimulate large-scale project work, particularly refurbishments.
- For practices that rent or own their offices, the excess resulting from the extra business property rates payable since the beginning of April can be spread over a three year period.
And for some numbers…
- Net change in income tax, tax credits and National Insurance contributions:
- £119 if you are single, working full time, earning £34,000 with no dependent children
- £637 if you are single, working full time, earning £34,000 with two depenedent children
- £ 238 if you are a couple, both working full time, earning £51,000 combined with no dependent children
- £ 238 if you are a couple, both working full time, earning £51,000 combined with two dependent children
- Alcohol taxes up by two percent increasing the average price of beer by 1p
- Tobacco taxes up by tow percent increaseing the price of a pack of 20 ciggarettes by 7p
- Fuel duty up by 2p per litre
Find out exactly how the budget will affect you with these three budget calculators: