PQ magazine is for part qualified accountants.
Read the latest web issue here – if you like what you see sign up today
MORE BUDGET STUFF…
30 October 2018
More budget ‘highlights’…
VAT threshold frozen
The chancellor said the VAT threshold will continue at the current level of £85,000 for another two years, until April 2022.
The practice of purchasing services through overseas branches to avoid UK VAT will also be ended.
HMRC a ‘preferred creditor’
From April 2020 HMRC becomes a preferred creditor and will have priority to recover taxes in the event of an insolvency. There is a worry that this may increase the likelihood of enforcement by HMRC. Lenders with fixed charges will be relived to learn that their security will continue to rank ahead of HMRC.
The current flat rate of £3,000 per employer will change from April 2020. The chancellor said the government will target it at small and medium businesses with an Employer NICs bill under £100,000.
Corporation Tax rates
The corporation tax rate stays at 19%.
Capital gain tax
From 2020 the government will limit Lettings Relief to properties where the owner is in shared occupancy with the tenant, and reduce the final period exemption from 18 to 9 months.
Entrepreneur's relief is retained and the minimum qualifying period has been extended from 12 to 2 years.
This budget also introduced a permanent tax relief on new non-residential structures and buildings. This is partly funded by an adjustment in the special writing down rate for long-life assets from 8% to 6%. The chancellor believes this will better align the tax and accounting treatment of theses assets.
Subscribe to RSS