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	A Joseph & Joseph Chartered Certified Accountants Business and Tax Advisers Registered Auditors
Our Business... Payroll & Bookkeeping Business, Company Accounts, Auditing and Tax Advice Travel Agents and Tour Operators Charities, Clubs and Associations Solicitors' Accounts and Taxation Business Consultancy Newsletter-1 Newsletter-2 Newsletter-3 Newsletter-4 Business Updates Feedback Home	Budget 2001	Increase in working family tax credit is £5 per week (2000/2001 maximum £169.90) See below for eligibility.* Childcare tax credits increase from £100 to £135 a week for one child and from £150 to £200 a week for two children from June 2001 (See below for eligibility).* Child benefit increased from £13 to £15 per week. VAT on children’s car seat reduced from 17.5% to 5%. VAT on clothes for bigger children abolished. Tips for Reducing Personal Tax Burden...* Give up smoking and drinking! Shop round for mortgage loans or remortgage. Buy cars with 1500 cc engine or less to save on car tax and fuel. If you have money to spare avoid tax on saving by putting the money into Individual Savings Account (ISA - up to £7000 per year per tax payer) or buy shares in small companies. If you are self employed invest in a pension. Claim all allowances due to you for the tax year. Low-income families should claim working families tax credit and children’s tax credit. (Help line: 0845 300 1036). Working Families Tax Credit and Childcare Tax Credit - Eligibility. (Childcare tax credit is a component part of working families tax credit). You and your partner (if you have one) each work 16 hours or more each week either as self-employed or employee. Lone parent working 16 hours or more a week. One of a couple where one partner is working and the other is disabled. You care for children of qualifying age - up to 15^th. birthday (disabled children up to 16^th. birthday. (Help line: 0845 606 6668). BUDGET QUOTE: "The Chancellor talked a lot about this being a budget for families... It is not low incomes that are the problem in families, but the absence of a father. About two-thirds of the workless households also contain lone parents, so the underlying problem is clearly family breakdown...! (Times 08/03/02). Budget 2001 - Business Relief and Taxation The Chancellor made little mention of business in this year’s budget. It is worth noting however that some of last year's budget legislations were still being implemented this year. Following are the budget changes affecting small businesses. (Newsletter 3)
	Budget 2001 was a budget for families; including single parents with children. There were, for the first time in many years, fewer pronouncements on businesses and especially charities! This budget was the last before the June 7 elections and commentators agreed that this was a budget for votes! Highlight-Families and Individuals The chancellor's strategy on personal and family allowances are moving in one direction, means testing and away from age-old universal allowances. The drawback from this strategy is that many people dislike paperwork, and may forgo these allowances and benefits, rather than burdening themselves with 'unnecessary paperwork’! Universal Benefits and Allowances Income tax rate: 10 pence in the pound increased from £1520 to £1880 (income tax benefit £36 per annum-70 pence a week!) (See personal allowances in Table 1). 2 pence cut per litre on unleaded petrol, and 3 pence per litre cut on diesel from budget day to June 14! (Election day June 7!). Ultra low sulphur petrol cut by 2 pence per litre. Road tax for cars up to 1500 cc cut by £55 backdated to November 1, 2000. Road tax duty for vehicles above 1500 cc frozen. Road tax for vehicles with low carbon emissions cut up to £70. Duty on tobacco increased by 6 pence per packet of 20. Duty on beer, spirits and wine frozen. Betting duty abolished. Families Maternity benefit now £60 increased to £75 per week from April 2002 and £100 from April 2003; and for 26 weeks, currently 18 weeks. Paternity leave: Two weeks paid @ £100 per week, from April 2003. Benefits extended to adoptive parents. Children tax credit increased from £8.50 to £10 a week, one partner in the family must earn no more than £40000 per annum to be eligible. Families with a total income of £32000 per annum are eligible for full benefit (Help line 0845 7660 830). ‘New baby bonus’ is up to £10 a week for the first year of the child from April 2002. (One partner in the family must earn no more than £50,000 to be eligible).

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