Budget 2017

9th March 2017

What’s in it for Technology Companies?

Philip Hammond’s first Spring Budget announced a handful of steady-as-she-goes measures. The new announcements that will catch the eye of technology companies include:

  • From 6-Apr-18, the tax free allowance for personal dividend income will reduce from £5k to £2k pa,
  • For tax advantaged share schemes:
    • clarifying the EIS and SEIS rules for share conversion rights,
    • providing additional flexibility for follow-on investments made by VCT,
    • introducing a power to enable VCT regulations to be made in relation to certain share for share exchanges, to provide greater certainty,For tax advantaged share schemes:
  • Specific new provisions to the revised Patent Box rules, covering the case where Research and Development (R&D) is undertaken collaboratively by 2 or more companies under a cost sharing arrangement.
  • Administrative changes to Research and Development (R&D) tax credits, following a review of the tax environment for R&D. This will increase the certainty and simplicity around claims,
  • Tackling the workforce skills shortage by introducing new:
    • T Level qualifications (on a parity with A Levels),
    • Further education maintenance loans,
    • Trial projects that encourage lifelong up-skilling training
  • Capping the increase in business rates, as small business rates relief is withdrawn in 2017-18, to £600.

Overall, the tech industry will probably greet these announcements in a subdued manner. It is immediately clear that the over-riding strategy remains to balance the public finances (target date now extended to 2025), so there are no big ‘give-aways’.

Blog entry by: Ian Piper.

Related Services

Business Tax Private Client Tax


 
Other Blogs in Business Tax
 
Ian Piper
9th March 2017 Budget 2017

What’s in it for Technology Companies? Philip Hammond’s first Spring Budget announced a handful of steady-as-she-goes measures. The new announcements that will catch the eye of technology companies include: From 6-Apr-18, the tax free allowance for personal dividend income will reduce from £5k to £2k pa, For tax advantaged share schemes: clarifying the EIS and SEIS…

Read More »

Vanessa Pearson
6th March 2017 IR35 in the Public Sector

HMRC: Finally release new Employment Status tool. The new public sector IR35 assessment rules come into effect on 6 April 2017 and contractors have been concerned that they are unable to confirm their IR35 status. HMRC has now released its long awaited online Employment Status Tool. The tool is available to contractors, engagers and agencies…

Read More »

Philip Peters
24th February 2017 Renewal Premiums

Tax Investigation Insurance: Premiums for 2017-18 policy year. Prices unchanged from the previous year:   Limited companies with turnover >£20m                    POA Limited companies with turnover £10m to £20m     £540 Limited companies with turnover < £10m                   £185 Partnerships and LLP’s                                                     £155 Sole traders                                                                         £100 Private clients                                                                       £40 Our tax investigation insurance business is…

Read More »

Catherine Hubbard
24th February 2017 MTD Update

MTD: Revenue hold firm. HMRC have published their long awaited response to the making tax digital (MTD) consultation documents.  In essence the original timeline as detailed in the consultation documents remains unchanged, with the first taxpayers being affected by MTD from April 2018. Therefore for those businesses with an accounting year end of 5 April and…

Read More »

Catherine Hubbard
22nd February 2017 MTD & VAT

MTD: Merging with VAT returns. As part of Making Tax Digital for Business, those unincorporated businesses who are also VAT registered will have to submit their VAT data through a digital software package from April 2019, rather than by using HMRC’s online portal. This will hit those businesses who do not currently use an accounting…

Read More »

Vanessa Pearson
3rd February 2017 New VAT Rules

Contractors: New flat rate VAT rules (Limited Cost Traders) HMRC has released updated guidance regarding changes to the flat rate VAT scheme which come into effect on 1 April 2017. The advantage gained by using the flat rate scheme is going to be restricted for ‘limited cost businesses’. A limited cost business is one whose…

Read More »