01438 718118

info@rspartnership.co.uk



MORE RATES RELIEF FOR SMALL BUSINESSES

HMRC, Tax

There has been much lobbying from the small business sector to reduce business rates to enable traditional retailers in particular to compete with internet traders. The Chancellor has announced a one third reduction in business rates for small businesses with premises with a rateable value up to £51,000.

R&D TAX CREDIT RESTRICTED

HMRC, Tax

The amount of repayable R&D tax credit for Small and Medium Sized Enterprises (SMEs) will again be restricted by the amount of the claimant company’s PAYE and NIC liability from April 2020. The new limit will be set at three times the company’s total PAYE and National Insurance contribution (NICs) payment for the period

COMPANY TAX TO REDUCE TO 17%

HMRC, Tax

As previously announced the current 19% rate is scheduled to reduce to 17% from 1 April 2020.

CAPITAL GAINS ENTREPRENEURS’ RELIEF CHANGES

HMRC, Tax

The Chancellor has announced that the minimum qualifying period for CGT entrepreneurs’ relief will be increased from 12 months to 24 months for disposals on or after 6 April 2019. There are further changes affecting shareholdings in personal companies. In addition to the individual holding 5% or more of the ordinary share capital and voting […]

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

HMRC, Tax

Very controversially, the Government have decided to extend the rules for personal service companies in the public sector to workers in the private sector from April 2020. This follows a consultation in Summer 2018 on how to tackle non-compliance with the intermediaries legislation (commonly known as IR35) in the private sector. The legislation which has […]

VAT REGISTRATION LIMIT CONTINUES TO BE FROZEN

HMRC, Tax

The VAT registration limit normally increases in line with inflation each year. However, It was announced last year that the limit would be frozen at £85,000 until 1 April 2020. It has now been announced that the limit will now remain at the same level until 2022.  The deregistration limit will remain at £83,000.

NEW CAPITAL ALLOWANCE FOR COMMERCIAL BUILDINGS

HMRC, Tax

A new 2% straight line tax deduction is being introduced for the cost of construction or renovation of commercial buildings and structures. This tax break will apply to eligible construction costs incurred on or after budget day and will be available to commercial property landlords as well as trading businesses. The cost of the land […]

ANNUAL INVESTMENT ALLOWANCE INCREASED TO £1M

HMRC, Tax

The Annual Investment Allowance (AIA) which provides businesses with a 100% write off against profits when they acquire plant and machinery has been temporarily increased from £200,000 to £1 million for two years from 1 January 2019. This will again mean that the timing of expenditure will be critical. It may be advantageous to delay […]

NO CHANGES IN TAX RATES

HMRC, Tax

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. There had been rumours that the dividend rate might be increased, but dividends continue to be taxed at 7.5%, 32.5% and then 38.1% depending upon whether the dividends […]

PERSONAL ALLOWANCE AND HIGHER RATE LIMIT INCREASED EARLY

HMRC, Tax

The Government’s manifesto pledge back in 2015 was that the personal allowance would rise to £12,500 in 2020 and the higher rate tax threshold to £50,000. However, the Chancellor has decided to bring forward these increases one year early from 2019/20, taking an estimated 1 million taxpayers out of higher rate tax. Note that up to 10% […]