Is there any certainty over our taxes in our changing world?
In his Spring Statement, the Chancellor said the rejection of Theresa May's deal has left “a cloud of uncertainty hanging over our economy” although he later went on to say the UK’s economy has so far remained “remarkably robust”. An improvement in the public finances should give the Chancellor a windfall for 2020 but there is ongoing uncertainty surrounding Brexit.
What we are certain of is that Making Tax Digital (MTD) for VAT-Registered Businesses goes live on 1 April 2019, the end of this tax year is the 5 April, and current tax breaks may not be here forever.
Individuals should consider:
- transferring income producing assets to their spouse to use Income Tax allowances and lower tax rates
- charitable donations and pension contributions to achieve Income Tax savings of up to 60%
- Claiming capital losses on asset disposals realised in the last four years (or investments with a negligible value)
- transferring assets between spouses prior to sale to use CGT exemptions, lower CGT rates and capital losses
- IHT lifetime exemptions especially the valuable ‘excess income giving’ exemption
Businesses should make use of the generous tax reliefs available for purchases of moveable plant, machinery, equipment and energy efficient vehicles. If you are purchasing new premises, tax relief may also be available for the fixtures and fitting in the building.
If you undertake research and development, are you claiming enhanced Corporation Tax relief?
As expected, HMRC have recently opened a new consultation on ‘Off-Payroll Working Rules from April 2020’ for privately owned medium and large businesses. If you engage with individuals via their Personal Service Company, Income Tax and National Insurance Contributions will need to be deducted in the future.
Call Alex or Sarah T at CKLG on 01223 810100 for friendly help and support.