Budget 2013 and Business Tax

20th March 2013

The 2013 Budget has some good tax news for SME businesses:

  • The new £2,000 Employment Allowance will help reduce the hidden employment cost that Employer’s NIC has now become.
  • The continual gradual reduction in the main rate of corporation tax towards 20% will also lead to reductions in the marginal rate, which will help the SME’s that are generating more than £300k of profits each year.
  • The threshold increase from £5k to £10k for beneficial loans to employees, that do not attract a notional interest benefit in kind tax charge, is welcome, especially for personal service companies as they get to grips with how they will operate their payroll under the new RTI PAYE rules.
  • Further detail on the new Employee Share Status rules remain of interest to business owners who wish to incentivise their key employees. The detail is awaited with interest.
  • Increasing the Annual Investment Allowance tenfold, for a 2 year window, gives more certainty to the tax planning tool that is probably of most relevance to all SME businesses.

Some concern should still be held back, however, over proposals for a new General Anti Avoidance tax Rule.



 
Other items in Blogs
 
Lucy Bayliss
12th November 2019 Finance charges for landlords – The knock on effects

  Since 6 April 2017, changes are being gradually introduced to restrict the relief available to landlords in respect of their finance costs. Under the old rules, the interest element of the mortgage payments was 100% allowable for income tax purposes. However, this is gradually being replaced with a 20% tax reducer instead. The timetable…

Read More »

Barbara Nicholas
1st November 2019 Brexit halts Budget

With all the uncertainty over Brexit, we waited a long time to learn the date of Sajid Javid’s first Budget.   Finally we learnt this was to take place on 6th November, amid great excitement at muted suggestions about the possible abolition of Inheritance Tax and radical changes to stamp duty.   The bubble has…

Read More »

Vanessa Pearson
28th October 2019 Off-Payroll Worker Tax Rules: Be prepared!

Knowledge based contractors working in the private sector will hopefully now be well aware that, subject to any possible Government last minute change of heart, new tax rules are coming next April. For many, who are not currently following IR35 rules, this will mean a large increase in the tax they pay; perhaps tens of…

Read More »

Matilda Mawson
24th October 2019 I’ve got 99 Problems but my Tax Return isn’t 1!

There are now only 99 days before the tax return filing deadline of 31 January 2020. Do not delay – file it today! Not sure if you need to file a tax return? HMRC have a questionnaire that only takes a few minutes and will check whether any of your income or gains will require…

Read More »

Jeannette Hume
24th October 2019 R&D Tax Claims: HMRC finally go-digital.

In February 2019 HMRC introduced an online tool to submit Research & Development tax relief claims (both SME and RDEC claims). It is still necessary to make the claim on a company tax return (form CT600), but the accompanying detailed R&D project information can (but does not have to) now be submitted by completion of…

Read More »

Ruth Pearson
17th October 2019 Is it too early to talk about Christmas!

In December 2018 HMRC wrote to employers to advise of a temporary easement on reporting PAYE information in real time. This was for a number of reasons, one of which could be due to businesses closing over the Christmas period and therefore having to pay staff earlier than normal.   HMRC have received feedback from…

Read More »