Entrepreneur Relief

For disposals after 5th April 2008 a flat rate of 18% comes into effect. Unfortunately this did mean a big tax increase for small business owners looking forward to selling their businesses, perhaps to fund their retirement, or maybe planning to invest in a different business. Entrepreneur relief has been introduced to help resolve this…

Research & Development Tax Credits

R&D tax credits are a company tax relief for investment into research and development projects. The R&D credit goes up to 175% from April 2008 (prior to this the relief was 150%) What does this mean? well simply if you spend £100,000 on qualifying R&D you get tax relief on £175,000. For companies not making…

Capital Allowances

Under the current system, small enterprises (and if you receive our newsletter, thats what yours is) get 50% of the cost of a new item of equipment or a commercial vehicle allowed against profit in the year it was purchased and then 25% of whats left in year 2 and so on. A new system…

VAT issues for 2008/09

The VAT registration threshold increased from £64,000 to £67,000 from 1 April 2008. The VAT deregistration threshold is increased from £62,000 to £65,000 from 1 April 2008. The legislation relating to the option to tax land and/or buildings will be simplified and minor changes will be introduced to enable taxpayers to revoke an ‘option to…

Income Shifting – changes postponed

All the professional bodies and the small business organisations (such as the FSB and the Professional Contractors Group) have been lobbying hard for the changes due to be introduced on the 6th April 2008 to be postponed, thankfully Alistair Darling has seen the light. The proposed changes were unworkable. What’s the fuss about? Well HM…