Bray Accountants No Comments

Making Tax Digital

The vast majority of VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns, the introduction of compulsory Digital Links has now been delayed until 1st April 2021. Those VAT registered businesses below the VAT threshold will not be required to use the system yet, although they can choose to do so voluntarily.

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat

Bray Accountants No Comments

Budget Reports and Statements

Main items of interest to the majority of small businesses will be:

  • Personal allowances and national insurance rates, please view the tax data information page above.
  • Employers Employment allowance increased to £4,000 from April 2020 saving a potential further £1,000 on Employers NIC.
  • Don’t forget the £1,000 a year in tax-free allowances for property or trading income available since April 2017.
  • The Corporation Tax rate is remaining at 19% and the proposal to reduce to 17% from April 2020 has been withdrawn.
  • VAT registration limit to remain at £85,000 until April 2022 and the deregistration limit £83,000.
  • CGT lettings relief for landlords is to be withdrawn from April 2020 together with a reduction in the final period exemption for private residence.
Bray Accountants No Comments

Landlords Loan Interest Restriction

From April 2017 the tax relief given on Loan Interest for Landlords will gradually reduce in circumstances where without Loan Interest the Landlord would be a higher rate taxpayer, these rules are to be phased in over 4 years meaning there will be no tax relief at higher rates from 2020/21 onwards.

https://www.gov.uk/government/publications/restricting-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlords

Bray Accountants No Comments

CIS Scheme

The new CIS scheme, in operation since  April 2007, contains many penalties and risks to Contractors. For more information on how the scheme works, click on the link below for HM Revenue Customs guidance but preferably please contact us for a more detailed explanation. Beware of H M Revenue interpretation on self employed status, it is not law and incorrect, there have been many tax cases on this issue in the last couple of years which detail the current law. Also, care must be taken to ensure gross payment status is not lost through late payments of tax.

https://www.gov.uk/topic/business-tax/construction-industry-scheme