Income and corporation tax changes in the budget and using a company

I've had a few people asking whether the income and corporation tax changes in the budget make using a company more or less attractive. If you're not aware of these yet basically these increase the rate of corporation tax for a small company to 22% as from April 2008. In addition over the next couple of tax years the basic rate of income tax reduces to 20%, but the 10% tax band goes (at least for employment or trading income). The NIC & income tax bands are also to be aligned. I've put together an analysis for site members here