Emergency Budget 2010 – Good news for contractors

Specialist contractor accountancy firm Danbro has said that the Emergency Budget unveiled by Chancellor George Osborne includes good news for contractors.

Mr Osborne said the ‘tough but fair' new Budget, which includes a VAT increase FROM 17.5% to 20%, was necessary to tackle Britain's deficit.

However, it also included measures to help smaller businesses, as well as contractors, such as reduction in Corporation Tax by 1% a year for four years until it reaches 24%, while small business tax will be cut to 20%.

Danbro managing director Damian Broughton said: "Some good new was included for contractors, with Corporation Tax being reduced and personal allowances rising to £7,475, but spending cuts may hit existing projects heavily.

"Having said that, organisations generally may start turning to contractors for a more flexible workforce, which does not have the financial constraints and commitments of full time staff.

"The rise in VAT will hurt us all. However, umbrella contractors will be better off due to the rise in personal allowances and the increase in the threshold for employers' National Insurance."

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For more information contact Danbro on:
Head Office: 01253 600140
London Office: 0207 836 84000
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