Here are the ten things you need to know about the Pre-Budget Report:

1 – Income tax freeze

Income tax rates, allowances and thresholds will be frozen for the 2010/11 tax year at current rates. What this means in practical terms is that if your earnings rise next tax year, so will the amount of income tax you pay.

2 – VAT back to 17.5%

Value Added Tax (VAT) returns to 17.5% from the temporarily discounted rate of 15% on 1st January 2010. Retailers and other VAT-registered businesses will have to reprice their goods and services accordingly. We shouldn’t rule out VAT at 20% in the short-term, particularly as the UK has one of the lowest rates of VAT in Europe.

3 – New 50% income tax rate

On 6th April 2010 a new higher rate of income tax is being introduced at 50% on earnings over £150,000. At the same time, the personal allowance will be reduced by £1 for every £2 of earnings over £100,000. Higher earnings are going to be paying a lot more income tax in 2010/11.

4 – National Insurance hike in 2011/12

National Insurance contributions (NICs) for employees, employers and the self-employed are going up by a further 0.5% (so 1% in total) from 6th April 2011. The primary contribution limit is also going up so those earning less than £20,000 will not be paying more NICs.

5 – Pensions get more complicated

The world of pensions is becoming even more complex for higher earners, with immediate changes to the anti-forestalling measures which will capture those earning £130,000 rather than the previous £150,000 earnings threshold introduced in April.

6 – Basic State pension increases

The basic State pension is going up by 2.5% in April 2010 even though the Retail Prices Index (RPI) measure of price inflation remains in negative territory. This increase will only apply to the core part of the basic State pension, with other additional payments frozen at current levels.

7 – Banker Bonus Tax

If you are a banker and you receive a discretionary bonus of more than £25,000 between now and 5th April 2010, your employer will be taxed at 50% with the introduction of a Bank Payroll Tax (BPT).

8 – Inheritance Tax nil-rate band freeze

The inheritance tax nil-rate band has been frozen at £325,000 for 2010/11, which means estates will have higher IHT bills next tax year if property prices continue to increase as the economy enters recovery.

9 – Small business corporation tax rise deferred

If you run a small business, the planned 1% increase in the small companies’ corporation tax rate has been deferred for a year. It will rise from 21% to 22% in 2011/12.

10 – 50p a month broadband tax

Every household with a fixed line telephone will be taxed 50p a month to fund the roll-out of high speed broadband Internet access to 90% of homes by the end of 2017.

So, that’s the Pre-Budget Report 2009 in a nutshell. Ten points that you need to know and consider in terms of your own personal financial planning.

If you would like to read a more detailed briefing note and analysis of the main personal finance measures, you can download a free 17 page special report from the Informed Choice website at http://www.icl-ifa.co.uk/2009/12/prebudget-report-highlights-analysis/.