BUDGET Day, April 17, that key date for businesses of all sizes - and individuals, for that matter - is fast approaching.

Whether it's to be Golden Brown or plain old Gordon could depend on pre-budget preparations. Businessmen and women are advised to take note of the Chancellor's pre-budget statement.

An effective tax rate of only 10 per cent on disposals of business assets after two years' ownership is likely be introduced. Therefore, it could represent good tax planning to delay any possible sale until an asset has been owned for at least two years to take advantage of a more favourable rate.

The change is due to a proposal to increase business asset taper relief. Currently, the effective tax rate is 20 per cent. To wait until it drops to 10 per cent might be a good move unless you are currently disposing of business assets to use available retirement relief.

A suggested proposal to extend the 10 per cent rate of corporation tax to small companies from the current banding of £10,000. If businesses are able to "incorporate", ie become limited companies rather than operating as individual concerns, it could make the organisation more tax-efficient.

Another possible change in the offing is a proposal to simplify VAT for small businesses, providing a flat-rate scheme. It is hoped by many that the provision will reduce the administrative burden for certain small businesses. It would certainly eliminate much of the

paperwork burden which confronts many these days.

Less time spent on bureaucratic record-keeping automatically means more time for operating the "sharp end" of the business.

Large companies could be presented with new tax credit rules regarding research and development. It will most probably apply to the larger companies, normally with a turnover of £11million plus and beyond.

This probably cuts out 95 per cent of local businesses, but is understandably significant to those within its brief.

On the other hand, it has been widely reported that National Insurance rates will increase in order to fund improvements to public services. Such legislation will naturally increase the tax burden on employers and provisions will have to be made for this increase.

As the current fiscal year draws to a close, there are always year-end pointers worth bearing in mind. It is possible to bring forward capital expenditure to before the accounting year end instead of afterwards, thereby accelerating tax allowances by 12 months. Also, tax relief is available for investments in venture capital trusts and enterprise investment schemes. For example, capital gains can be deferred by investment in such projects. Income tax relief is also available.

In all of these matters, it is crucial to seek advice in order to maximise opportunities and ensure tax efficiency.