Budget Updates

There were a number of announcements in last weeks budget that will affect Voluntary and Community Groups. Rather than listing each one we have provided links to the analysis provided by a number of organisations:

NCVO

• NCVO | Budget 2010: How will it affect you?
• Third Sector Foresight | Implications of the budget

ACEVO

• ACEVO | Policy: George osborne delivers emergency budget
• ACEVO | Spending cuts and the emergency budget analysed on new cutswatch.org.uk website
• ACEVO | Cutswatch

Directory of Social Change

• DSC | Emergency budget 2010

j4b

• j4b | Emergency Budget 2010 – What It Means For The Community Sector

News Shopper

• News Shopper | LEWISHAM: Council outlines £60m cuts over three years

Direct Gov

• Direct Gov | Budget 22 June 2010
• Direct Gov | VAT - Value Added Tax
• Direct Gov | Income Tax and National Insurance rates for 2010-11

Future funding applications

When making funding applications remember two changes:

• VAT will rise to 20% on 4th January 2011
  

  The standard rate of VAT (Value Added Tax) will rise to 20 per cent from 4 January 2011. The current rate is 17.5 per cent.

• Employee and employer NI rates will increase by 0.5% in April 2011
  

  The government has announced that the employee, employer and self-employed rates of National Insurance contributions (NICs) will increase by 0.5 per cent from April 2011 in addition to the 0.5 per cent increase announced in 2008.

  There are also changes to the starting point for paying National Insurance and increases to the personal allowances. These may mean that some low-paid or part-time workers do not pay tax and/or national insurance.