Dear <<First Name>>,
It's time for our Spring Newsletter (you can download a PDF copy here) and in this edition we cover a few matters which I think will be of interest.
Our lead article considers changes to the VAT Flat Rate Scheme (FRS) which allows small businesses to pay over VAT on all their sales at a flat rate rather than output VAT on sales less input VAT on purchases. The introduction of a new 16.5% higher percentage for ‘limited cost traders’ may mean some businesses should opt out of the FRS.
In the article titled ‘New finance service’ we report on a new scheme for small businesses that are experiencing difficulty in raising finance. Businesses which have been refused finance by their bank may be referred to three finance platforms giving them access to other finance providers.
Welcome changes are being introduced for companies which will increase the options available for tax relief on the use of trading losses from 1 April 2017. Some restrictions will apply to large companies and groups.
Entrepreneurs’ Relief is a valuable relief, taxing up to £10 million of capital gains at 10%, where conditions are met. We report on two Tax Tribunal cases where HMRC challenged taxpayers’ claims to the relief on the disposal of shareholdings. We also consider the tax breaks for those investing in Venture Capital Trusts which have now been available for over 20 years.
Have you checked your state pension forecast recently? A recent Tribunal concluded that the onus is on the taxpayer to review their position during their working life. It is important to ensure your contributions records are complete, especially if you have been self-employed. We also report on a potential pitfall for ‘stay at home’ partners of those opting not to claim child benefit, who may be missing out on accruing entitlement to their state pension.
The government has introduced a new Targeted Anti-Avoidance Rule (TAAR) which seeks to tax the distribution on a winding up of a close company as income rather than a capital gain. This could potentially catch those who start a similar trading activity in the two years following the winding up.
Included with the newsletter you will find three special briefings where we look in more detail at:
1. Year End Tax Planning
As now is an ideal time to turn your mind to a review of your personal and business tax strategies, we are including our ‘Year-end tax planning’ guide which includes many tax efficient tips you may wish to consider. (Download your PDF copy here)
2. Business motoring – tax considerations
We consider the tax reliefs available for business cars and the tax consequences for the directors and employees driving the cars. We also review the various financing arrangements and the capital allowances tax reliefs available.
We also consider the tax deductions available on different types of vehicle and how individuals are taxed when vehicles are provided.
With a review of the recent and future changes relating to car capital allowances and employment benefits we hope you will be able to make an informed choice on car and other vehicle replacement decisions. (Download your PDF copy here)
3. Essential Employer Update
We review the changes that a new tax year brings including an update on Pension Auto enrolment as it continues to be rolled out to small employers. We also include an update on the new Tax Free Childcare scheme and the government’s plans to target salary sacrifice arrangements.
We also consider changes to the travel and subsistence rules for Personal Service Companies and agency workers, an update on the National Living and National Minimum Wage and the introduction of the Apprenticeship Levy. There are lots of changes for employers to get to grips with. (Download your PDF copy here)
Please contact us if you have any questions regarding any of the articles we have included in our newsletter or if you would like further information on a topic we haven’t covered. Your views are always important to us and we would welcome your feedback.
Email address: firstname.lastname@example.org