UPDATED KEY GUIDES – JANUARY 2020
UPDATED KEY GUIDES – JANUARY 2020
Here are the latest Updated Key Guides; we have reviewed all of the Key Guides for relevant developments, some have not needed amending but here are the Nine Updated Key Guides for your information and guidance. Contact us if you need any further guidance and/or assistance.
You can access the whole series of KEY GUIDES through the downloads in the Recent News section of our website here: –
The amended Key Guides are: –
Accessing your company profits
- An updated introduction advises that the possibility of new, environment-related taxation may be on the horizon for businesses.
- An example regarding national insurance contribution calculations has been revised for greater clarity.
- Information is given about the forthcoming changes to personal service company (PSC) IR35 rules for private sector businesses.
- Updated information about the taxation of company cars, in line with the government’s environmental policies, is given.
- A warning is also given about the need to keep abreast of Brexit developments over the coming year and its potential impacts on business planning.
Making tax digital
- Information about the types of roll-out for different areas of tax has been made clearer.
- MTD for VAT became compulsory in April 2019, with an agreed delay to October 2019 and early 2020 for certain types of business; the key guide has been updated to reflect this deferral, explaining its implications for public sector bodies who use the GIANT system of tax reporting.
- Fuller details about the MTD VAT situation in general have been given.
Making the most of fringe benefits
- An update to the introduction makes the point that the Conservative party re-election in December 2019 makes changes to the taxation of benefits in 2020/21 very unlikely.
- The introduction also reiterates how the company car, traditionally a popular benefit, has become less tax efficient, with the introduction of the UK’s first zero-emissions street a good indicator of the future of motoring.
- The guide explains one way to improve efficiency is for employees to contribute up to £5,000 for a new company car which may allow them to afford a car with much lower emissions.
Starting and selling a business
- Updated introduction touches on implications of the UK general election and the consequences of an orderly or disorderly exit from the EU on the UK’s economic growth
- Updated advice regarding tailoring business plans to take EU exit into account for 2020
- The latest information on the expansion of the IR35 rules to the private sector set for April 2020.
- A new mention of the proposed further discounts (to 50%) to retail business rates.
- Update to regarding the annual 2% write-off for the construction costs of commercial property which is now set to increase to 3%.
- New mention of an increase to employment allowance.
- Inclusion of the government’s announcement to conduct a “review and reform” of entrepreneur’s relief.
Strategies for a high tax environment
- Updated information from the Office for Budgetary Responsibility has been given
- The latest situation based on the Conservative party manifesto regarding increasing the NICs threshold has been added.
- An additional comment regarding Entrepreneurs’ relief and the potential ‘review and reform’ it may undergo has been inserted.
- An update regarding the abandonment of the plan to cut Corporation tax to 17% has also been added.
Tax allowances for business investment
- An update regarding the upcoming increase in structures and business allowance (SBA) from 2% to 3%
- Up-to-date example figures used to explain how to calculate the annual investment allowance (AIA)
Taxation of property
- An updated introduction touches on the performance of the housing market in 2019, the projected rise in house prices and the implications of Brexit following the general election result.
- A change to the information on corporation tax which is now remaining at 19%.
Working through personal service companies
- An updated introduction touches on the forthcoming expansion to the private sector of the IR35 rules for personal service companies (PSCs), including the government’s review of the implementation.
- Further advice on the CEST tool which has been updated by HMRC with 30 new or updated questions, in addition to a contract review process.
- An additional section on retaining your personal service company.
You and yours – estate planning
- An update on the shelving of probate fee changes and delays in processing applications.
- A comment on whether the Office of Tax Simplification proposals on inheritance tax will be integrated into the March 2020 Budget is added.
Contact Paul Southward.