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  • Capping the increase in business rates, as small business rates relief is withdrawn in 2017-18, to £600.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 items in Blogs
 
Hannah Wisbey
17th October 2017 Actors: IR35 tax rules will probably apply.

  In a recent tax tribunal test case, relating to the well-known actor Robert Glenister, HMRC were challenged as to whether the IR35 intermediary tax rules should apply to an actor earning his living through a personal service company.   As is typical with individuals providing their personal services through an intermediary company, Mr Glenister…

Read More »

Donna Gidney
17th October 2017 Start-Ups: Choosing a Business Name

  What’s in a Name? Having decided to start out in business, you will need to choose an operating name.  This is an important decision as it is the first thing that customers notice about you.   There are several factors to consider, including:   Relevance & Personalisation You may want to refer to your…

Read More »

Neil Groom
12th October 2017 Trust Registration Service

  HMRC has released guidance for trustees and their agents for the new online Trust Registration Service (TRS) which has been operating since the middle of July. The new service replaces the old form 41G, as well as a section of the trust tax return used to report changes in trustee contact details.   Trusts…

Read More »

Mark Burrows
11th October 2017 Making Tax Digital – will free software be available?

  When Making Tax Digital (MTD) was first announced, HM Revenue & Customs said that free software would be available for the most straightforward small businesses.  Under MTD records of business income and expenses will be required to be kept digitally using a software product or app.   HMRC have since provided clarification on which…

Read More »

Thomas Carter
11th October 2017 Xerocon London 2017

Two fantastic days at Xerocon London on 4th and 5th October as 2000 attendees from 24 countries descended on the ExCel, the annual event for Xero Partners. Over the two days, four of our staff: Tom Carter, Dan Coleman, Steph Tinkler and Chip Moore attended the event. It was an opportunity to learn about new…

Read More »

Philip Peters
5th October 2017 HMRC “Connect”: Now checking businesses that should VAT register.

We have known since 2010 that HMRC has a computer programme, called “Connect”, that is collecting data from a variety of sources about taxpayers, and then using this intelligence to check on correct tax compliance. We have known that these data sources include Banks, Social Media, DVLA, Local Authorities, Foreign Tax Jurisdictions and Land Registry.…

Read More »