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VAT REGISTRATION LIMIT FROZEN

Budget 2017

The VAT registration limit normally increases in line with inflation each year, however the limit has been frozen at £85,000 until 1 April 2020. At the same time the deregistration limit remains at £83,000. There had been rumours that the VAT threshold would be reduced so that more businesses would be required to charge VAT […]

DIARY OF MAIN TAX EVENTS

Budget 2017, Tax Diary

DECEMBER 2017 / JANUARY 2018 Date What’s Due 1/12 Corporation tax for year to 28/02/17  (unless quarterly installments apply) 19/12 PAYE & NIC deductions, and CIS return and tax, for month to 5/12/17 (due 22/12 if you pay electronically) 31/12 VAT for Returns ended 31/10/17 (due 07/12 if paid electronically, 12/12 if paid by direct […]

R&D TAX RELIEF INCREASED

Budget 2017

The rate of the R&D expenditure credit is being increased from 11% to 12%, in order to support business investment in R&D. This is the relief available to those companies that do not qualify for the more generous relief available to SMEs.

MILEAGE ALLOWANCE FOR BUY TO LET LANDLORDS

Budget 2017

Another measure hidden away was the proposal that buy-to-let landlords will be able to claim 45p a mile for necessary visits to their rental properties. This will be as an alternative to claims for capital allowances and deductions for actual expenses incurred, such as fuel.

EIS TAX RELIEF INCREASED FOR INVESTMENT IN TECH BUSINESSES

Budget 2017

The Government will double the amount that an individual may invest under the EIS in a tax year to £2 million from the current limit of £1 million, provided any amount over £1 million is invested in one or more knowledge-intensive companies. The annual investment limit for knowledge-intensive companies receiving investments under the EIS and […]

BUSINESS RATES RELIEF FOR SMALL BUSINESSES

Budget 2017

There has been much lobbying from the small business sector to reduce business rates. The Chancellor stated that 600,000 small business currently benefit from small business rates relief. In order to support the licensed trade  from April 2017, pubs with a rateable value up to £100,000 are able to claim a £1,000 business rates discount […]

CHANGES TO DIESEL COMPANY CARS

Budget 2017

Company car benefits are based on CO2 emissions data which has encouraged employees to choose diesel cars due to lower CO2 emissions. The government is trying to reduce the number of diesel cars and will increase the current 3% diesel supplement to 4% from 6 April 2018. As previously announced radical changes to the company car […]

NO CHANGE IN TAX OR NIC RATES

Budget 2017

The basic rate of income tax and higher rate remain at 20% and 40% respectively and the 45% additional rate continues to apply to income over £150,000. Although Class 2 National Insurance contributions (NIC) for the self-employed are being abolished from 6 April 2019 and “merged” with Class 4 contributions the Chancellor did not dare […]

IR35 “OFF-PAYROLL” RULES MAY BE EXTENDED TO PRIVATE SECTOR

Budget 2017

Although not mentioned in the Budget speech the other documents released on Budget day mention the possible extension of the rules for personal service companies in the public sector to workers in the private sector. The government will consult in 2018 on how to tackle non-compliance with the intermediaries legislation (commonly known as IR35) in […]

PERSONAL ALLOWANCE AND HIGHER RATE LIMIT INCREASED

Budget 2017

The Chancellor reminded us that the government are committed to increasing the personal allowance to £12,500 in 2020 and the higher rate tax threshold to £50,000. However, the personal allowance for 2018/19 was only increased in line with inflation to £11,850 and the higher rate threshold to £46,350. Note that up to 10% of the […]