Further Relief for Business Rates Relief

Small Business Rates Relief

As from 1 April 2016 there will be further relief for those small businesses in England that successfully apply for small business rates relief.  The previous temporary increase in the level of relief available was due to end on 31 March 2016 but the increase has been extended until 31 March 2017. The Non-Domestic Rating (Small Business Rate Relief) (England) (Amendment) Order 2016 will only apply to small businesses in England but similar provisions have been put in place for small businesses in Wales.

Charity Business Rates Relief

There has also been a recent update on the matters that should be taken into account when assessing whether a charity is entitled to claim business rates relief. The case of South Kesteven District Council v Digital Pipeline Limited [2016] concluded that the fact that a property is empty and not being used for purposes additional to charity purposes is irrelevant. Charity relief for business rates (80% of the usual liability) is available for occupied property where (1) the ratepayer is a charity or the trustees for a charity; and (2) the property is wholly or mainly used for charitable purposes. The latter part of this test is subject to further enquiries into exactly how the charity uses the property.

By Lawblacks.

New Personal Savings Allowance

From April 2016 HM Revenue & Customs (HMRC) is introducing a tax-free Personal Savings Allowance of £1,000 (£500 for higher rate taxpayers) for savings income or interest.

The new allowance means that most people will no longer pay tax on their savings interest.

Follow the link for more information:  https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance

National Living Wage

From April 2016, the government will introduce a new mandatory national living wage (NLW) for workers aged 25 and above, initially set at £7.20 – a rise of 50p relative to the current National Minimum Wage (NMW) rate. That’s a £910 per annum increase in earnings for a full-time worker on the current NMW.

The adult NMW rate is currently £6.70. From 1 April 2016 the premium will come into effect on top of the NMW, taking the national living wage to £7.20. The NMW will continue to apply for those aged 21 to 24, with the premium added on top for those aged 25 and over, taking the total hourly rate to the national living wage.

For more details follow this link.

https://www.gov.uk/government/publications/national-living-wage-nlw/national-living-wage-nlw

 

 

Small firms petition against quarterly reporting

More than 100,000 small business owners and self-employed workers have signalled their opposition to a Government proposal that would force them to file tax returns on a quarterly rather than an annual basis. An online petition created by small business owner Paul Johnson on the Government’s own portal has now passed 100,000 signatures, the point at which Parliament is expected to debate the issue. According to the Telegraph, complying with the new rules would cost small companies and individuals between 20% and 150% more in accountants’ fees. However, a spokesman for HMRC claimed that the impact of the change had been over-exaggerated. They stated: “Quarterly updates will not involve all the complexity of a full tax return. The updates will be generated from existing digital business records. In most cases, little or no further entry of information will be needed.” The Government is spending £1.3bn on the digital overhaul of HMRC to allow “light-touch” reporting to take place, but accountancy firms have warned that compliance costs could rise. The Forum of Private Business has calculated that micro businesses will spend an extra £600 a year in accounting fees, hitting £1,600, while companies that employ staff will see their costs rise by £500 to £3,400.

 

Capital Gains and Stamp Duty – changes to deadline for filing and payment Capital Gains

The government has announced that it intends to bring forward the date for payment of CGT on gains arising from the disposal of residential property. Instead of the current due date of 31 January following the tax year of disposal, tax will be payable within 30 days of completion. This payment date will apply to gains realised with effect from April 2019. Individuals who benefit from the principal private residence exemption will not be affected.

This accelerated payment date will bring the payment date applying to UK residents in line with that applying to non-residents who sell UK residential property.

Buy-to-let landlords with high borrowings who are intending to reduce their property portfolios in response to the restriction on interest deduction from April 2017 may need to plan their disposals carefully.

Stamp duty 

The government announced that it will consult on changes to the stamp duty filing and payment process, including bringing forward the deadline for paying and filing a return to within 14 days after the effective date.  It is envisaged that the changes will come into effect in the 2017-18 tax year.

The current deadline for payment of stamp duty and submission of the return is within 30 days of the effective date

by lawblacks

 

Campaigners urge Chancellor to abolish tax on directors’ dividends

A campaign to abolish tax on directors’ dividends has attracted 25,000 signatories and aims to attract the support of 100,000 business leaders. Serena Humphrey, owner of Nottingham-based financial training company The F Word, launched the campaign in September. She says: “With other changes coming into effect, such as auto-enrolment, a 10% increase in the minimum wage, the 3.5% insurance premium tax increase and the imminent interest rate rises, this dividend tax is an attack too far on small businesses. Those profits have already been taxed at 20%, so this 7.5% tax means we’re paying 27.5%, well above the basic rate.”

Source:  The Mail on Sunday (04/10/2015)

Superfast Broadband Grant

We thought you would be interested in the following initiative from the Department for Culture, Media and Sport. They have up to £3,000 for you to boost your business’s broadband – all you need to do is apply. Find out now if you are eligible for up to £3,000 to cover the installation costs of upgrading to a faster and more reliable connection for your business. You could get a fibre optic, cable or wireless broadband connection among other options.  Most businesses pay nothing but VAT and their standard monthly charges. Over 22,000 businesses in 50 cities are already benefitting from the scheme.  By upgrading, you too could: ·                  Do things faster – increase your business’s productivity, ·                  Improve customer service, ·                  Access new markets using video conferencing. Please visit here to find out if you are eligible and choose from a number of pre-defined options. Whilst this message is specific to small businesses in the 50 cities on the scheme and their surrounding areas, we understand the information may still be of interest to you. Do you also know about our webinars (online presentations)? If your business is growing or you are thinking of taking on an employee, you can find out more by joining our free webinars. Don’t miss out. Book on today .

Alison Walsh Head of Digital Support for Business and Agents

Government Apprenticeship Grant Scheme

Hiring an apprentice can help you:

• Improve your bottom line: 72% of businesses report improved productivity as a result of employing an apprentice. Apprentices can be more cost effective and can lead to lower overall training and recruitment costs. Click here to find out .more

• Create a motivated workforce: Apprentices tend to be eager, flexible, and loyal. Apprentices deliver skills designed around your business needs

• Claim your grant: You may be eligible for a £1,500 grant if you’re a small business

• Design your own traineeship: Find out about the benefits of offering work experience to help young people become work ready.

The National Apprenticeship Service supports the delivery of apprenticeships and traineeships in England and offers impartial advice and support to employers looking to recruit for the first time or expand their programme.

Visit their website to find out more.

Updated Fuel Advisory Rates

HMRC has announced their updated fuel advisory rates for employees using company cars. The new rates apply from 1 March 2015 and cover all business journeys made by the employee from this date.  For one month, the employer may continue to use either the previous or the new rates. They may, therefore, make additional payments to their employees or be entitled to a refund from them – but are under no obligation to do either. Hybrid cars are treated as either petrol or diesel (depending upon the engine type) for this purpose and electricity supplied does not count as a ‘fuel’ for mileage rates purposes.  The new rates can also be used for VAT purposes, but employers will need to retain receipts. Full details of the new rates can be found on HMRC’s website by clicking here.

Marriage Allowance, a tax break for married couples,

The government has today opened registration for the new Marriage Allowance, a tax break for married couples, helping them save up to £212 a year.

Applying online is straightforward. Couples can register their interest to receive the Allowance now at gov.uk/marriageallowance.

From 6 April 2015, more than 4 million married couples and 15,000 civil partnerships will be eligible for the tax break.

The Allowance means a spouse or civil partner who doesn’t pay tax – therefore is not earning at all or is earning below the basic rate threshold (£10,600) – can transfer up to £1,060 of their personal tax-free allowance to a spouse or civil partner – as long as the recipient of the transfer doesn’t pay more than the basic rate of income tax.

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From April, HMRC will contact those who have already registered for the Marriage Allowance to apply. People can register at any point in the tax year and still receive the full benefit of the allowance.

Applying online is simple. One person in a couple will apply online to transfer the allowance to their spouse or civil partner, and HMRC will tell the recipient about the change to their Pay As You Earn (PAYE) tax code.

Register your interest in Marriage Allowance.