Aaron Associates newsletter

Philip Hammond announced that the “era of austerity is finally coming to an end but discipline will remain”. There was welcome news for many businesses in his second Autumn Budget. 

We have highlighted below some of the main headlines.

Personal tax 

Philip Hammond delivered the first Autumn Budget reporting on an economy that "continues to grow, continues to create more jobs than ever before.  

We have highlighted below some of the main headlines:

Research and Development
An additional £2.3bn will be made available to fund an increase in the research and development tax credit to 12%. This will take effect from 1 January 2018.

VAT Flat Rate Scheme.

Changes are being made to the Flat Rate Scheme (FRS) which take effect from 1 April 2017. These changes may mean that the FRS is less attractive to some businesses and this may result in these businesses deciding to no longer operate under the FRS. In some cases where a trader has voluntarily registered for VAT it may be appropriate to deregister from VAT.

The Chancellor delivered his Autumn Statement to Parliament on 23 November 2016 and you will find a summary of the changes which may affect you, as an employer.

Salary Sacrifice

The Chancellor intends to remove the income tax and employer’s Class 1A National Insurance contributions (NICs) advantages from salary sacrifice arrangements. In this context, salary sacrifice includes Benefits in Kind (BiKs) with a cash allowance option and flexible benefit packages with a cash option.

We would like to take this opportunity to update you on June activity within Aaron Associates. Our tax consultancy offer a range of taxation services.
 

Travel and Subsistence Legislation Update

We would like to take this opportunity to update you on February’s activity within Aaron Associates. Our tax consultancy offer a range of taxation services.
 
R&D and Patent Box
Below are examples of claims we can assist:

1. If you’re saving for a deposit for your first home, you can earn a bonus with the Help to Buy: ISA

If you’re saving to buy your first home, you can put away up to £200 a month in the Help to Buy: ISA and the government will top it up by 25%, up to a maximum of £3,000.

This year, if you put away £3400 in your Help to Buy: ISA, your bonus will be £850 in December (save £1,200 in January and £200 every month after that).

As thoughts turn to the 31 January 2016 SA tax return deadline, I would like to take this opportunity to remind you that, from the tax year 2014/15 onwards, there are changes to Private Residence Relief.

If your clients have disposed of residential property, on which they wish to claim Private Residence Relief, they need to be aware of the amendment to the period classed as 'final period of ownership'.  This has been reduced, from 36 to 18 months, depending on circumstances, with effect from 6 April 2014.

Yes it is that time of the year…again…so let’s get down to business

If your sending a paper tax return it must reach the HMRC by midnight 31st October. Although this applies only to the submission of paper tax returns to the HRMC, there are a number of advantages of completing the personal tax return now rather than waiting for the final tax deadline in Jan 2014 and risking unnecessary penalties.