As the end of the current tax year approaches, it is worthwhile making a check to ensure that the various tax-efficient savings opportunities have been utilised wherever possible. The following paragraphs highlight some of the areas where savings may be made.
The maximum annual investment limit for Individual Savings Accounts (SAs) will remain at £20,000 for 2019/20. The limit effectively allows a couple to save £40,000 a year between them and receive interest on the investment tax free. There will also be no capital gains tax to pay when…
In broad terms, the Employment Allowance (EA) is available to most employers and should enable them to reduce the amount of National Insurance Contributions (NICs) they have to pay by up to £3,000 per year. The eligibility rules changed from April 2016, and the Autumn Budget 2018 announced further changes expected to take effect from April 2020. It is worth checking to make sure that a limited company is still eligible to benefit from this tax incentive.
Employers may generally claim the EA if they are a business (including…
Businesses considering investing more than £200,000 in plant and machinery could benefit from a change to the capital allowances rules in January 2019, which should allow them to obtain tax relief at an earlier time.
Capital allowances are treated as a trading expense of a particular accounting period, so they can potentially increase a loss, or turn a profit into a loss for tax purposes, which in turn, will impact on the amount of tax payable by a business. Where a business is considering expenditure on qualifying items, it…
The VAT rules for businesses suppling digital services to private consumers in other member states change with effect from 1 January 2019.
From that date, the place of supply will be the UK where both:
– a UK business is not established in any other EU member state; and
– the total value of cross-border digital sales is less than £8,818 in the current and preceding calendar years.
Businesses affected will no longer need to register for VAT in other EU countries where they have consumers or use the VAT Mini One…