To borrow a line for HMRC, ‘tax doesn’t have to be taxing’. But sometimes it can feel that way, with ever-changing laws and misleading guidelines. Of course, it pays to have a good accounting team or, at the very least, a freelance accountant.
But the best business owners have at least a vague grasp of tax law, and at least know the right questions to ask their financial advisors.
Real Business has written a fantastic article rounding up the latest tax changes. As always, you’ll like some of them, you won’t like others. And be prepared for more changes after the Election in May. That’s just the way it goes!
Corporation tax falls to 20 per cent
Chancellor George Osborne recently said: “I want to send a message to anyone that wants to set up business here, or create jobs here, that Britain is open for business.” Real Business points out that this is less than Germany (29 per cent) and France (33 per cent) but more than Ireland (12.5 per cent).
An extra £1,500 for high street businesses
The Great British High Street may be falling short of a noticeable revival but at least measures are being taken to encourage people into those empty stores. Local authorities will now apply the discount to business rates bills, cutting costs for those hard-working shop owners who have battled to keep shops afloat for years, as well as attracting new entrepreneurs.
Diverted profits tax introduction
At the end of 2014, and again in the recent budget, Osborne promised to clamp down on businesses such as Google and Facebook, which are making big money in the UK but shifting profits overseas. Seems fair!
SME R&D tax credits rise to 230 per cent
Small businesses arguably struggled in recent years but R&D tax credits have received a further boost in the past six months and are now worth 230 per cent.
Next week, we will look at national insurance, expatriate employees and PAYE updates