National Insurance Contributions (NIC) - The former government's planned 1% increase in NIC will not be entirely scrapped, any NIC increases are likely to hit contractors, particularly those who run their own limited companies, who will have to pay both employers' and employees' NIC. DNS will come with details once emergency budget is announced.

Value Added Tax (VAT) - Although there has been no specific mention of any rise in VAT, it is clear that the coalition will need to raise additional revenue, and many industry experts fully expect a VAT increase to 20% in the lifetime of this parliament; many expect the increase to be with immediate effect in the emergency budget on 27 June 2010.This will have no direct impact on contractors but small business competitiveness can suffer due to increase. so we have to be prepared about any such increase.

Personal Allowance - It is expected that the planned increase in personal allowance threshold - from the current level of £6,475 to £10,000 - will rise by about £700 per year, which would mean the coalition achieve  their objective of raising the starting point of income tax by £3,500 over the lifetime of this Parliament. Those getting tax credits may, however, see them decrease, while the personal allowance threshold increases: all part of the strategy to free individuals and civil servants of costly paperwork of a means tested tax credits system.This does means more hardship for families earning or individuals earning between £10K - £20K as tax credit goes down.

Capital Gains Tax (CGT)- Investors and others with assets worth substantially more than they paid for them should consider taking profits now because CGT will more than double from its current rate of 18pc. The increase in CGT is to be accompanied by additional relief for entrepreneurial investments. While investment in businesses is definitely being encouraged, private investors with long-established holdings of shares or funds such as individual savings accounts and pensions, second properties as well, will be hit hard. Some industry experts expect to see the starting point for CGT on non-business assets cut from its current level of £10,100 to £2,500.

Inheritance Tax (IHT) - The scrapping of the Tory policy to raise the IHT threshold to 1m is believed to be one of the key concessions that helped secure an agreement to form a coalition with the Liberal Democrats. But it now looks as if the threshold will remain at £325,000 and £650,000 for a married couple or couple in a civil partnership.

IR35 - No firm stance has yet been agreed on IR35, but it is notable that before the election the Liberal Democrats had promised to repeal IR35, whilst the Conservatives had said it would be reviewed as part of an overall review of small business taxation. So no Firm decision on IR35 and Income Shifting which still leaves Contracting quite lucrative.