LAND LET IN CONACRE
The decision in the Evelyn case (February 2011) means that letting land can have significant adverse effects in relation to Capital Gains Tax and Inheritance Tax. Careful planning in setting up and operating the letting agreement is required. The retention of evidence of activity on the farm is critical
REVENUE & CUSTOMS RIGHT TO RE-OPEN EARLIER YEARS
An important decision in the Evelyn Case (February 2011) is that the Revenue have the right to re-open assessments within 6 years if the taxpayer has not supplied detailed information in the relevant year's return
HMRC SCRAPS CIS PHONE VERIFICATION
TAXMAN'S RECORD KEEPING TOOLKIT
In mid 2011 Revenue & Customs will start a programme of Business Records checks that will look at the adequacy and accuracy of business records. If, as a result of the check by the Revenue, it is considered that a business is not maintaining reasonable records, a maximum fine of £3,000 may be imposed. Sources of information can be found on the folllowing HM Revenue & Customs website links
www.hmrc.gov.uk/factsheet/record-keeping.pdf
www.businesslink.gov.uk/recordkeeping
www.businesslink.gov.uk/recordkeepingcheck
CHANGE TO TAX CREDITS SYSTEM
A new Universal Credits system is being planned. This new system will replace Tax Credits from 2014
The period for backdating a claim will be reduced from the current 93 days to one month from April 2012
Household income threshold will be £40,000 from April 2011 and further changes in April 2012
Income disregard for income increases are being reduced from £25,000 to £10,000
FUNDING FOR NEW START UP BUSINESSES
A new source of funding for technology based start-ups is now available raising £25,000 to £250,000 along with support from Angel Investors
RECLAIMING VAT ON YOUR HOME BUSINESS
If your business requires you to work from home you may be able to recover input vat on office conversion costs. If you trade as a limited company and all of the premises conversion is for business, the company can reclaim all of the Input Vat.
If you trade as a sole trader, a proportionate claim can be made.
Corporation Tax
Corporation Tax Rate for year to 31.3.2018 is 19%
Previously for the year to 31.3.2017 Corporation Tax Rate was 20%
Capital Allowances
Main capital Allowances - Plant and Machinery
100% Annual investment Allowance (AIA) £200,000
Investigation Time Limit Changes
From April 2010 the right of HM Revenue & Customs to go back up to 20 years to collect tax underpaid has been removed. HM Revenue & Customs can now go back only 6 years and the burden of proof is with the Revenue to prove that the tax payer has not taken reasonable care.
National Insurance Holiday for New Businesses set up from 22 June 2010 to 5 September 2013
For the first ten employees that a new business employs in its first year of business, following start-up, it will be entitled to a National Insurance Contribution saving during the first year of the employee's employment. The maximum saving is £5,000 in employers' National Insurance Contribution in respect of each employee.
New businesses who wish to avail of the above must make an on-line application to Revenue & Customs.
Please note, this must be an actual new business starting up, not the transfer of a going concern.
Capital Gains Tax
Annual Exemption for 2017/18
Individual, estates - £11,300
Most Trusts £5,650
Furnished Holiday Lettings
New tax regime to be in place from April 2011.
VAT
From January 2011 the VAT rate is to be 20%
The Business Flat Rate and Agricultural Flat Rate Schemes are to be amended from January 2011
Business Payment Support Service
HM Revenue & Customs have extended the above Scheme whereby a taxpayer may apply for a 'time to pay arrangement' subject to a number of conditions