Welcome to Westlake Clark
Autumn Budget 2018
Headlines from the Autumn Budget:
- The annual tax-free personal allowance will be increased to £12,500 from £11,850 starting from April 2019.
- From April 2020 there will be fewer tax reliefs available to people selling their own homes if they did not always live in them.
Currently there is a final period exemption (regardless of use) of 18 months. This is being reduced to 9 months; therefore you will have less time to sell your old home before some of the sale becomes taxable. Lettings relief, which can currently be claimed by anyone who rented out their old home, will only be available to those sharing their property with their tenants.
- From 1 January 2019 there will be a temporary increase to the Annual Investment Allowance from £200,000 per year to £1 million per year, for two years. This allows businesses to claim 100% tax relief for the cost of capital expenditure such as computers, machines, vans etc.
- Entrepreneurs’ relief (“ER”) is a tax relief available for individuals selling their business, reducing the tax on sale to 10%. From April 2019 the minimum ownership period in order to qualify for ER will increase from 1 year to 2 years. There was also an immediate introduction of two new ‘5% tests’ for individuals selling shares.
- The VAT registration and de-registration limits of £85,000 and £83,000 respectively will be frozen until April 2020. This will mean that companies exceeding £85,000 of sales per year must register for VAT and can only deregister if sales fall below £83,000 per year.
- Individuals who pay the Higher Rates of Stamp Duty Land Tax (“SDLT”) because they purchase their new home before selling their old home will now have up to 3 years (previously 2) to sell their old home and claim back the additional 3% SDLT they paid. This will apply for anyone selling their old home on or after 29 October 2018.
- Changes were also announced relating to Capital Allowances, Research and Development tax reliefs, IR35 provisions (rolling out “off payroll” tax compliance to the private sector) amongst other topics.
If you do have any questions or concerns about the points raised in the Budget please do feel free to give us a call or pop into one of our offices and collect a complimentary Budget 2018 booklet.
Making Tax Digital for VAT
From 1 April 2019, businesses will be required to use the Making Tax Digital for Business (MTDfB) system to meet their VAT obligations – known as Making Tax Digital for VAT (MTDfV). Businesses with a turnover above the VAT threshold (currently £85,000) will be required to use MTDfV. Those businesses that fall within the scope of MTDfV will be required to submit their VAT returns using software compatible with the MTDfV regulations. Information will be extracted from the digital records in order to populate the VAT return.
HMRC’s pilot service is now open to businesses whose affairs are up to date and straightforward and will be extended to most other business types over the coming months.
Please do contact us for more information on MTDfV.
Tax Return deadline 31 January 2019
The deadline for submitting your 2017/2018 Tax Return online is 31 January 2019. If you need any assistance, please do contact our Tax Team on 01590 672674.
Here at Westlake Clark we have taken part in several fundraising days over the last couple of months – Jeans for Genes, Macmillan Coffee morning and Wear it Pink day. Our thanks to colleagues and clients for taking part and supporting these worthy causes.
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