What does the Chancellor have in store for us in the pre-Budget report? A leading accountant offers her top tips.

Put 10 December in your diary. It’s the date of the Chancellor’s pre-Budget report, a sort of mini-budget.

The Chancellor normally reserves his big for the Budget which takes place in the Spring.

But the pre-Budget review can be a good way of breaking unwelcome news, the idea being that by next year we will have either forgotten or got used to it.

This year the announcement is very close to Christmas, but I doubt the Chancellor will be giving away few presents.

So what will be in his pre-Christmas stocking? And how could it affect you?

Childcare

Childcare provided by your employer has always been free of National Insurance (NI).

However it’s currently only tax-free if your employer both pays for the childcare and manages it.

The good news is the government is expected to announce that other employer-supported childcare, not just childcare in work-based nurseries, but also vouchers, could be free of tax and NI.

But the bad news is that financial support could be capped at 50 a week.

This low ceiling could lead to a NI increase for many people and a tax bill for some parents.

I also fear that it could increase complexity for employers, and some could stop providing childcare altogether.

Vans

The government has been consulting on plans to change the way vans are taxed.

The Inland Revenue currently classes company cars and vans . Cars are heavily taxed, while vans get off more lightly.

If your employer provides you with a van you can use to go to and from work, and/or use at the weekends, you could be in for a big surprise.

The government has woken up to the increasing popularity of vans in recent years.

It plans to treat vans like company cars, so people could see their tax bill increasing by more than 100%.

Pensions

The complex pension tax rules are due for a shake-up.

Obscure regulations are going to be swept away, but other problems could appear.

For instance, if your pension savings fund does really well, so that its value exceeds 1.4m, the Chancellor is expected to confirm that any excess will no longer be tax-free, but will be taxed at the rate of 60%.

Stamp duty

For most people, having such a large pension is as likely as living in Lapland. Owning a valuable house is much more likely.

But Will Mr Brown catch you there too?

Although there has been lots of speculation about whether stamp duty should be changed to reflect booming house prices, it is likely the government will be preoccupied with two major reports on housing, the Miles report on fixed term mortgages and the Barker report on increasing the supply of housing.

And with the housing market finely balanced, it may not want to increase stamp duty this time.

Domicile

This issue has been simmering in the background for years - but is definitely one to watch in this year’s pre-Budget review.

Generous tax breaks are available to people who live in the UK, but do not regard Britain as their home country.

This rule is very beneficial for wealthy foreigners, because they can avoid paying tax on non UK income and capital gains, as long as they do not bring the money into the UK.

These “domicile” rules are likely to change, increasing the tax bill for these individuals.

There is a political argument that the rules could be fairer, but I think too harsh an approach will make rich entrepreneurs less likely to set up businesses here.

National Insurance (Nics)

NICs stands for National Insurance Contributions.

In April this year NICs went up by 1% on earned income.

In my view, it is unlikely the Chancellor will put them up again so soon this side of a general election.

The opinions expressed are those of the author and are not held by the BBC unless stated. The material is for general only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.

The delegation from the Moroccan parliament was in Scotland to study devolution.

Would the Scottish model be a solution to the problem of their rebel province of Western Sahara?

Perhaps they could disband the regiments of the Polisario militiamen.

Or they might introduce ID cards which could only be used for non-devolved services.

At the very least they might pick up a few tips on how to fight a general election which has not yet been called and which does not involve any of the issues for which the politicians concerned are responsible.

All he (Tony Blair) needs is a handbag and he’d be a dead ringer for another prime minister who failed to take heed of the wishes of the Scottish people Nicola Sturgeon

The Scottish National Party’s Nicola Sturgeon, for instance, asked First Minister Jack McConnell whether he would raise those awkward issues of ID cards and the Scottish regiments with the prime minister while he was in Scotland on his visit.

“The Scottish Parliament has voted against ID cards and the merging of the six Scottish regiments,” said Ms Sturgeon, “so will he represent the democratic views of this parliament to the prime minister?”

Both issues are, of course, matters reserved to Westminster but that did not stop Mr McConnell pointing out that ID cards would not apply to Scottish Executive services and that the SNP would “abolish” the regiments altogether because they wish to disband the British Army.

Nor did it stop Ms Sturgeon having a go at the prime minister.

“Tony Blair is out of touch. He doesn’t listen and he isn’t trusted by the people of Scotland,” she said.

“All he needs is a handbag and he’d be a dead ringer for another prime minister who failed to take heed of the wishes of the Scottish people.”

Annual statistics

Conservative leader David McLetchie went on the attack over school discipline.

There was an assault on a teacher every 12 minutes of the school day, he said, yet Education Minister Peter Peacock had stopped collecting annual statistics on incidents of indiscipline in Scotland’s schools.

“We don’t have a peacock running education, we have an ostrich.”

Mr McConnell replied: “We had a government of ostriches when the Tories were in power.”

Holyrood is determined to tackle Scotland’s binge drinking culture

We were back in the Western Sahara. But if the Moroccan parliamentarians cared to look through the business of the week at Holyrood, they might find more practical suggestions for good government.

Housing Minister Malcolm Chisholm announced that anyone selling a house will have to provide a seller’s survey.

The idea is to avoid multiple surveys being carried out on the property by each of the bidders. A voluntary scheme launched last July attracted only 74 householders, so it’s now to be made compulsory.

A bill to ban “happy hours” in pubs was announced by the executive on Monday.

Cheap drink promotions will have to last at least 48 hours.

It will be part of a bill to up-date Scotland’s licensing laws.

Economic viability

Other changes will include more powers for local licensing boards and tighter rules to prevent the sale of drink to under-18s.

A bill to allow the opening of a tram line from Leith to the centre of Edinburgh was given approval in principle.

There are still doubts, however, over its economic viability.

And a bill to tighten the law on FMG, female genital mutilation, was given its stage one approval on Thursday.

Over-jealous police preparations are creating an atmosphere of Fortress Gleneagles Colin Fox SSP leader

MSPs heard with horror that young girls from Scotland are still being sent to Somalia to be circumcised.

Anyone found aiding and abetting such an operation will now be liable for prosecution in this country.

The Scottish Socialist Party staged two debates in the chamber on Thursday morning.

The first called for the introduction of free school meals for all children.

The second called for a restatement of the right to demonstrate at the G8 summit of world leaders at Gleneagles in July.

In his first speech as the new Socialist leader, Colin Fox said the G8 leaders were the cause of world poverty, not the solution.

“Over-jealous police preparations are creating an atmosphere of Fortress Gleneagles,” he said.

Provocative attitude

“And I wonder whether these are designed to prime the population for attempts to curtail our right to protest peacefully.”

Minister Tom McCabe admitted contingency plans have to be made by the police but it was the Scottish Executive’s policy to “facilitate” demonstrations and encourage debate on the real issues of the summit, poverty in Africa and climate change.

The Scottish National Party’s Roseanna Cunningham caused a stir by suggesting the police were adopting a provocative attitude to .

“The police are presenting things at the moment that look like them saying effectively… come on if you think you’re hard enough.”

The SSP attacked what it called ‘over-jealous police preparations’

It was a suggestion later denied by the Chief Constable of Tayside John Vine.

On Wednesday, the communities committee was packed out with lobby teams from all sides in the debate over opencast coal mining.

The executive is thinking of introducing a presumption against the practice into the planning laws.

The mining companies and the unions said when that was done in England it led to a drastic fall in output and jobs.

Last year no planning applications were approved at all.

They said the same would happen in Scotland, with the loss of 2,800 jobs.

The industry says thousands of jobs depend on opencast mining

Campaigners from Lanarkshire argued that most of the jobs were “imported” and the coal companies continually flouted their planning conditions.

Scottish Coal has offered a compromise of “compliance plus” and withdrawn planning applications from two sites near the village of Douglas.

But whether that will be enough to change ministers’ minds - we will just have to wait a few weeks to see.

Finally, the enterprise and culture committee issued a report deploring the “significant decline” in funding for community arts projects.

They said two million Scots participate in the arts and crafts movement, transforming their lives and their communities.

MSPs want more outreach work by the national arts companies, a new award scheme, and the art-proofing of all the executive’s budgets.

Scotland is not a cultural desert, the gentlemen from Morocco will be pleased to note.

Cumbernauld may not be Casablanca, Tranent may not be Tangiers, Motherwell may not be Marrakesh, but at least Holyrood is not Holywood.

The New Year usually brings an upsurge in housing market activity.

Even before the Christmas decorations are put back in the attic people start to think about moving home.

The “sky-high” house price inflation of recent years has now finally come to an end, so sellers can no longer rely on a legion of hungry buyers to snap up their property no matter what.

On the other hand, though, the market is a long way from being in freefall, so buyers have to be sensible in their offers and act swiftly when they see the right property.

According to some estimates, 75% of buyers now do their initial research online.

So, if you are looking to sell your home in 2006, it is essential to use an estate agency that has an attractive, up-to-date and easy-to-use website.

However, it also needs to be highly informative. Buyers, these days, are cash rich and time poor and want to know as much as possible about a property before they take the time to see it in person.

So, always check that detailed floor plans can be viewed online, that there are photographs of every room (not just the main rooms), and that there are accurate location maps. If these basics aren’t there, less people are likely to take an interest.

It might seem a strange thing to say, but next up you need to make sure that the estate agent isn’t overvaluing your property.

In the online information age, an overvalued property is as bad as an property because it can mean your property just won’t sell.

By doing some basic research online, buyers, these days, can get a good idea of what a property is worth so it’s pointless trying to tell them otherwise.

Remember, once you have instructed an agent, never tie yourself into a contract of more than six weeks.

In any case, a correctly priced property will often sell at a higher price than an overvalued one as it will generate more interest and may result in buyers competing with their offers.

An important part of selling a property is whether you instruct on a ’sole’ or ‘multi’ agency basis, and I would always recommend the former.

To start with, multi agency will almost certainly be more expensive - expect to pay up to 1.5% more in commission than sole agency.

A handful of signs outside your home can also send out the wrong message: it can tell buyers you’re having problems finding a buyer, or are desperate to sell, either of which could result in a lower offer price.

And then there is the fact that estate agencies will be less motivated to sell your property if they have not got exclusive rights on it - whatever they might say to the contrary.

Remember, once you have instructed an agent, never tie yourself into a contract of more than six weeks. This will focus the agents mind.

To reduce the amount of time it takes to sell your property, it is vital you contact a solicitor the moment you put it on the market. However, be sure to use one that is experienced in selling properties in your area.

The new year often brings renewed interest amongst buyers

The solicitor should immediately set out to collate all the necessary information, such as
service charge and leasehold documents and the deeds from the mortgage provider.

That way, once an offer is made, the onus is on the buyer’s solicitor to move the sale forward.

Once an offer has been accepted, you then need to be assertive with the buyers and set a timeframe of two weeks within which they must carry out the searches and have completed any surveys, which shows commitment.

Make sure they know that if they fail to do this, your property will go back on the market.

Location, location, location may be high up on a buyer’s list of priorities, but equally important is research, research, research.

Knowledge really is power when you are house hunting, and the best place to accumulate it in 2006 is online.

Take into account that 2006 is unlikely to be the buyer’s market we have experienced in much of 2005

For example, specialist websites like the government’s landregisteronline.gov.uk show actual prices paid on every UK property sold, as well as instant current valuations.

So, if you are keen to buy on a particular street, there’s a good chance you will be able to find out how much a similar property to the one you want to buy sold for recently, and what it is likely to be worth now.

This means when you approach an estate agent, you will be in a strong position.

Next up, check that the company you are dealing with is a member of two key industry bodies and abides voluntarily by their respective codes of conduct: the National Association of Estate Agents (NAEA) and the Ombudsman for Estate Agents (OEA).

That is not to say that non-member agents are all crooks, but is does give you peace of mind that the company you have chosen has met certain recognised standards, and that you can seek the help of a third party should you have cause for complaint.

Also determine whether the property you are interested in being sold on a ’sole’ or ‘multi’ agency basis. Sole agency is usually preferable because you know the seller is only dealing with one estate agent, meaning any dealings are likely to be smoother and - importantly - that you’re far less likely to be gazumped.

Given the competitive nature of the UK mortgage market, and the fact that interest rates are historically low, it is worth getting more than one mortgage quote.

For example, specialist mortgage brokers can often arrange far more competitive rates than are offered on the High Street.

Finally, when you make an offer, take into account that 2006 is unlikely to be the buyer’s market we have experienced in much of 2005.

Clearly, this depends on where you are and the type of property you are making an offer on, but confidence is growing overall and this, coupled with a shortage of stock, means that you could lose out on your dream home if you offer well below asking price.

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, advice for your own particular situation.

Men and women who retire from 6 April 2010 will only need 30 years of national insurance (NI) payments to get a full basic state pension.

The government is now considering a system for women to buy contributions if they still fall short.

The Pensions Minister Mike O’Brien said he might bring forward such a plan in November’s pre-budget report.

“What we are looking at are ways of allowing women to buy back-dated national insurance contributions, and we hope to have a look at this in our pre-budget report in November,” he said on the BBC’s Today programme.

Fewer contributions

Until 2010, men will still need 44 years of contributions, while women will need to have paid in for 39 years to receive a full state pension.

we are and keen to find a way to improve the situation DWP spokesman

Mr O’Brien’s comments came in response to complaints from the Liberal-Democrats that the reforms will not benefit people who retire just before the changes are due to take effect.

“If you are 60 on 6 April you are fine but if you were born on 5 April you don’t benefit at all from the new rule,” said the Lib-Dem spokesman Steve Webb.

Mr Webb claimed that some women might miss out on 25,000 worth of extra pension payments during their , citing calculations by the House of Commons library.

The issue may be discussed in Parliament this afternoon when the House of Commons debates a number of amendments set down in the Lords to its Pensions Bill.

One of them proposes that women be allowed to buy up to nine years of extra NI contributions to help them get a higher state pension.

“We don’t actually support the amendment,” said a spokesman for the Department of Work and Pensions.

“But we are sympathetic and keen to find a way to improve the situation,” he added.

The government says that when its new pension rule starts in 2010, the number of women eligible for a full state pension will rise immediately from 50% to 75%.

But it argues that phasing in this change, or starting it earlier, would simply cost too much or lead to other women losing out.

“This issue is a real one but is not easy to solve,” said Mr O’Brien.

The pensioners who are thought most likely to miss out on the new rule are women who stopped work in the 1960s and 1970s to bring up children before the pension system was changed to credit them with extra NI contributions.

The government claims that to bring in the 2010 change two years early would cost an extra 160 million a year from today.