TAX

The main corporation tax rate will be cut from 30 to 28 per cent and the small company rate will increase from 20 to 21%. Changes will also apply to other allowances and credits, including:

• a rise in research and development credits
  
  
• a new annual investment allowance will apply to all business sizes and replace small and medium enterprises first-year allowance schemes
  
  
• payable enhanced capital allowances may apply on certain losses

PAYE (Pay As You Earn) thresholds and rates and National Insurance rates and limits will change. The big change this April is that only two PAYE rates will apply - a basic rate of 20% and a higher rate of 40% for earnings over £34,600.

The Companies Act 2006 further reduces burdens on private companies.

For example:

• you will not have to appoint a company secretary unless you choose to continue to have one
  
  
• you will not have to have the signature of two directors to execute deeds - the signature of one director before a witness will be sufficient
  
  
• you and your auditors will have to meet certain new auditing rules - e.g. new requirements relating to the resignation of auditors

Small companies and groups will be redefined by new turnover and balance sheet thresholds. They will have the option of adopting fair-value accounting. They will have to make certain changes in their accounting and auditing practices, particularly with regard to listing directors' pay.

Employing people

Information and consultation (I&C) rules will for the first time apply to organisations with 50 or more employees. There is no automatic requirement to have an I&C agreement, but if 15 or more employees request one, you will have to agree to their request. For more detail on I&C rules, click here.

Very similar I&C rules for occupational pension schemes will also for the first time be extended to organisations with 50 or more employees that operate such schemes.

P46 requirements will change for all new employees other than pensioners - e.g. with regard to providing full employee information. As of 6 April 2009, large and medium-sized employers will have to electronically file Parts 1 and 3 of P45.

Health, safety, premises

A new corporate offence of corporate manslaughter (or corporate culpable homicide in Scotland) will come in. This will apply to work-related death caused by a gross breach of a company's legal duty to protect the people the company employs, and those who use its premises and products or services. These rules do not introduce new requirements but serve as a reminder to review your health and safety programme.

Empty property relief from business rates will change. The full business rate will apply to properties that have been empty for three months or more - or six months in the case of industrial property.

Sales and marketing

Business-to-business marketing will be regulated under new rules that will make misleading advertising unlawful. They will also impose restrictions on the use of comparative advertising. They will affect all businesses, and in particular those in retail, advertising and marketing, including companies and organisations responsible for a code of advertising practice.

Consumer protection - a ban on many practices, and other measures, will protect consumers from unfair treatment in general and misleading or aggressive sales practices in particular. The bans and changes will affect every area of trade and advertising, from doorstep to high street to online sales.

Professional and business services