With many business tax rate changes coming into place from 6th April 2019, here is a brief summary of the key points to focus on:
Making Tax Digital for VAT
Although Making Tax Digital for VAT is already in place, there is no requirement for companies to file their first digital VAT return under it before 1st July 2019.
The VAT registration threshold has been held at £85,000 for 2019/20.
There is a reduction from 8% to 6% on the rate for the Special Rate Pool (SRP) writing down allowance.
Beginning 6th April 2019, there will be an increase from one year to two years on the minimum period throughout which certain conditions are required to be met for eligibility to Entrepreneurs Relief.
The government has introduced a package of reforms to the apprenticeship levy to bolster employer roles. One example is the £240m provided to bring the co-investment rate for apprenticeship training down from 10% to 5%.
There is also the increase in the amount of the apprentice levy which can be transferred by large companies to smaller ones in the supply chain, up from 10% to 25%.
To give people weighing up their options more choice, there was a further £5m announced for the Institute for Apprenticeships. This allowed them to bring in new standards and update current ones, giving them the ability to offer more courses. Old frameworks will be terminated by the government, bringing new apprenticeships to the same higher-quality standards by the beginning of the 2020/21 academic year.
The rate for corporation tax stays at 19% for the 2019/20 tax year, with government plans to reduce it to 17% for the following tax year.
There is now legislation introduced by the government that will stop UK traders and professionals from avoiding tax by making their taxable business profits occur in territories where lower tax is paid than in the UK.
Increases in HMRC Tax Investigations
There has been a rise in legal cases between HMRC and taxpayers, due to HMRC collecting further data from banks and foreign tax authorities in order to send cases to tribunals. This has led to a rise of 43% over 2 years in First Tier Tax (FTT) tribunal cases. There […]
HMRC Seeks to be Preferential Creditor in Insolvencies
Recently announced by the government, there will be a public consultation on plans to make HMRC a secondary preferential creditor for certain tax debts paid by employees and customers on the insolvency of a business. HMRC was once a preferential creditor for certain taxes before 2003, however once the Enterprise […]
Research and Development (R&D) tax relief claims are far higher in recent years than ever before, with an astounding £21.4bn in tax relief claimed overall as confirmed in a report released by HMRC on 27 September 2018. Between 2000-2017, there have been over 240,000 claims made across the UK, with […]
What is Offshore Income Income is considered ‘offshore income’ if it comes from a territory outside the United Kingdom. It includes: – interest from overseas bank or building society accounts – dividends and interest from overseas companies – rent from overseas properties – wages, benefits, or royalties earned outside […]
Created in 1994, The Enterprise Investment Scheme (EIS) is a group of tax reliefs that succeeded the Business Expansion Scheme. It was created as an incentive to have investments in small unquoted companies carrying on a qualifying trade in the UK. The scheme is extremely popular, with £14.2 billion invested […]
Overview The Seed Enterprise Investment Scheme (SEIS) is designed to aid small, early-stage companies to raise equity finance by offering tax reliefs to investors that purchase new share in the companies. It works with the existing Enterprise Investment Scheme (EIS) that offers tax reliefs to investors in higher-risk small companies. […]