The 50% hit on the horizon by Steve Foster

Key career and practice advice
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Practice
CONTENTS
32 Storing
35 Sharpen up 37 Focusing
38 What is
41 We map
data is a hot
issue – literally.
We look at the
challenges facing
data centres
your negotiating
skills to make
sure you get the
right price from
your client
ADR and how
well-equipped
is the property
business to
practise it?
out one of
the many
benefits to
your RICS
membership
on overage
provisions and
how you can
gain value in
the downturn
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31_RICS_Jan10.indd 31
The 50% hit on
the horizon
Happy New Year! I sincerely hope that
2010 is much better than its predecessor
for the surveying profession. And with the
start of the year, it’s good to look ahead –
particularly given the imminent arrival of tax
increases in the UK. These may affect
partners whose profits have held up and
also senior employees (including directors)
who remain on more generous packages,
despite poor corporate performance.
Measures which restrict tax relief for
certain pension contributions to the basic
rate (rather than the higher rate) have
already been introduced. From 6 April
those with higher incomes will also lose
the personal allowance and face the new
50% income tax rate.
If your firm is concerned about the
impact of the 50% income tax band, here
are some thoughts. High level earners
should anticipate any income which might
fall after 5 April, but which could be paid
before then. It is wise to defer tax deductible
expenditure due before 5 April to reduce
2010/11 taxable income. This could mean:
■ paying dividends by 5 April
■ voting directors’ remuneration in by 5 April
■ paying bonuses or commissions by
5 April, rather than in the following tax year.
With only a few months to go, now’s the
time to look at your high-earners’ remuneration
in relation to the new
tax rate. Talk with
your accountant
about softening its
dent on you and
your colleagues.
Steve Foster,
Principal, Shipleys LLP
January 2010 RICS Business 31
10/12/09 15:51:27