In recent years there have been various tax measures – such as restrictions on the tax deduction for mortgage interest or increased SDLT rates – that have worsened the tax position regarding investment properties. A further raft of changes are due to take effect from 5 April 2020 – that may mean that some tax payers consider that now is a good time to sell investment properties.
The changes due to take place from April 2020 include adjustments to what is known as ‘Lettings Relief’, a restriction on the periods qualifying for Principal Private Residence Relief and a change in the tax payment dates.
Here we review the potential impact of these changes by way of a case study based on an illustrative property purchase. (more…)Read More
Recent months have seen significant changes to the VAT system in the UK with the introduction of Making Tax Digital (MTD) and further changes are due to be implemented later in the year including a new domestic reverse charge system for the construction sector.
The new Making Tax Digital regime is however intended to be only an initial staging point on towards the transformation of the VAT system through the use of digital technology.
The next step? Transactional Data through MTD Filings
The logical next step will be an extension of MTD to include transactional data. Currently MTD filings include only the numerical entries from the nine boxes on the VAT return but a relatively straightforward addition is likely to be the submission of transactional data in MTD filings. This would, potentially, allow HMRC to review individual transactions through MTD filings.
The main challenge here for HMRC will be developing the ability to process huge volumes of transactional data. (more…)Read More
This year has seen the introduction of Making Tax Digital which ultimately will give HMRC regular and up to date information. Companies House are looking to follow suit with potential changes which are set to give businesses increased protection.
To read the full changes please click here.Read More
Later this year changes to the VAT system will come into effect that will have an impact on many businesses operating in the construction sector. These changes will add an additional layer of complexity to the already complex system of VAT in the construction sector. Here we look in more detail at how these changes will work.Read More
Originally announced as a minor change in Phillip Hammond’s October 2018 Budget an alteration to the rules regarding Research and Development Tax Relief could have major implications for some businesses.
At present current Research and Development Tax Relief regime allows loss making companies to ‘surrender’ losses arising from research and development activity for a tax credit. This tax credit has become particularly important for start up or early stage companies – where cash flow is often a key concern.
Already an integral part of the firm, it is with great pleasure we announce our talented Associate Ben Houston has now been appointed Partner.
Ben began his career as a trainee with us in 2011 and has continued to show his commitment and talent as his career progressed within Burgess Hodgson.
Our Senior Partner Steve Sutton commented:
“Ben has shown dedication and his progress within the firm is very well deserved. We welcome him as our new Partner and being a part of the future of Burgess Hodgson”.Read More
The Chancellor’s 2019 Spring Statement gave the government the opportunity to consider the longer-term fiscal challenges ahead of Brexit, and initiate consultations on how these can be addressed.
Following this, Burgess Hodgson have put together a PDF which provides an overview of the updated forecasts for the UK economy and public finances, which we trust you will find useful.Read More
HMRC have published further details on how import / export procedures will change should a ‘no deal’ Brexit occur on the 29 March 2019. This guidance has been set out in a letter issued to many businesses in the last few days – the full text of the letter can be viewed at: https://bit.ly/2J05CtU
Proposed changes to VAT arising on a ‘no deal’ Brexit are a significant relaxation to the current VAT rules – these changes are known as postponed accounting. Currently where goods are imported to the UK from outside the EU they are required to pay UK VAT when these goods arrive in the UK. This currently presents a cash flow challenge for businesses as this VAT is not generally recovered for several months.Read More