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Well the pre-budget report has come and gone with no real surprises, the focus was predictably on clawing back as much money as possible without upsetting anyone in the private sector that wasn't a banker hoping for a large bonus.

The key points as far as we are concerned are:

- Banks are being taxed 50% of any bonuses they issue exceeding £25,000 between now and April the 5th, the net result being that bankers will be receiving either 33% less of a bonus, or everyone is just waiting for April 6th.

- The higher rate of tax will be frozen, so they will catch a few more people because of inflation.

- Employees and Employers NI is being raised half a percentage point.

Most of the changes are due to take place in 2011, making the whole thing a bit of a moot point because of the general election that has to happen between now and then, and things might be changing.

The Employees and Employers NI is the one that will effect most of us, and although it's not pleasant, it's certainly not as bad as it could have been considering the recession as a whole. For those of you in construction though our umbrella company there is even a little silver lining in the form of the CIS holiday pay scheme. Due to the NI increase you'll now be saving more each week giving you a little more to spend whenever you want to take time off. And for those of you in construction who don't use Gabem yet call us for details of how to take advantage of our services.

Hugo
@GabemUmbrella
11/12/2009