Happy New Year to everyone.
2017 has started and is going to be a busy year. There are many tax changes arriving this that we will be helping our clients to negotiate. Some of the highlights (if you can call them that) are:
- Changes to the flat rate VAT scheme for businesses with low costs: The government is bringing in a 16.5% rate from 1st April 2017 for businesses that have “limited” costs. This could affect some of our contractor clients. https://www.gov.uk/government/publications/tackling-aggressive-abuse-of-the-vat-flat-rate-scheme-technical-note/tackling-aggressive-abuse-of-the-vat-flat-rate-scheme-technical-note
- Dividend Tax and Allowance: This already arrived in April 2016 but in practice many clients declare final dividends which will be included in the 16/17 tax return and may not have considered the optimum strategy yet. https://www.gov.uk/government/publications/dividend-allowance-factsheet/dividend-allowance-factsheet
- New Personal Savings, Trading Income and Property Income tax allowances: Again these started from April 2016 but will first really affect people in their 16/17 tax returns.
- Workplace Pensions: Nearly a million Companies will be required to start their new Auto Enrolment Pensions this year. http://www.thepensionsregulator.gov.uk/en/employers
- Changes to Buy To Let interest realief: This is phased in from April 2017 https://www.gov.uk/government/news/changes-to-tax-relief-for-residential-landlords
- Abolition of Property Wear and Tear Allowance: Again this has been in place from April 2016 but will kcik in on clients 16/17 tax Self Assessment return https://www.gov.uk/government/publications/reform-of-the-wear-and-tear-allowance/reform-of-the-wear-and-tear-allowance
So as you can see there are quite a few changes that will affect small business owners. If you would like advice on any of these please let us know.