NEWSLETTER 78

BUDGET 2014

The Chancellor delivered his Budget Speech on Wednesday 19 March and set the scene for the announcements stating that: ‘If you’re a maker, a doer or a saver: this Budget is for you.’
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#BUDGET

CHANGES TO THE ISA REGIME

From 6 April 2014 the overall ISA savings limit will be increased from £11,520 to £11,880 of which £5,940 can be invested in cash.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#ISA

SAVINGS BAND AND RATE FOR 2014/15

The Chancellor announced changes to the maximum amount of an eligible individual’s savings income that can qualify for the starting rate of tax for savings.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#Savings

PENSION CHANGES

The Chancellor has announced a range of significant measures to bring greater flexibility to individuals who want to access funds in defined contribution pension schemes.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#Pension

PENSIONS - CHANGES TO COME

The Government plans to bring even greater flexibility into the pension system from April 2015.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#Changes

DOUBLING OF THE ANNUAL INVESTMENT ALLOWANCE

The Annual Investment Allowance (AIA) provides a 100% deduction for the cost of most plant and machinery (not cars) purchased by a business up to an annual limit and is available to most businesses.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#AIA

RESEARCH AND DEVELOPMENT (R&D) RELIEF

R&D relief gives additional tax relief to companies for expenditure incurred on R&D projects that seek to achieve an advance in science or technology.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#Research

NEW TAX-FREE CHILDCARE SCHEME

The Government has announced details of the new Tax-Free Childcare scheme which is to be launched this autumn.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#Childcare

SHARED PARENTAL LEAVE AND PAY

The Government has issued the draft regulations for Shared Parental Leave and Pay which are expected to become law from 1 October 2014 and will apply to babies due from April 2015.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#Shared

HMRC ISSUE GUIDANCE ON BITCOIN

HMRC have issued guidance on the tax treatment of income received from, and charges made in connection with, activities involving Bitcoin and other similar cryptocurrencies.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#HMRC

ADVISORY FUEL RATES FOR COMPANY CARS

New company car advisory fuel rates have been published to take effect from 1 March 2014.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#Advisory

PAYE PENALTIES

HMRC are to introduce further interest and penalties for the late submission of PAYE RTI returns and for late payment of PAYE liabilities.
- See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-78#PAYE

STAMP DUTY WIPES VALUE OFF HOMES

Stamp Duty has apparently been responsible for reducing house prices since 2012 by over £250 million.

Stamp Duty rises from 1% to 3% at £250,000.  People with houses worth just over that figure are on average reducing prices by £7,000 to bring them back into the 1% bracket.  If this affects some 40,000 homes as the figures suggest then the Government is losing approximately £200,000 in Stamp Duty but the housing market is still generally in a very slow recovery. ( The Times & The Daily Mail )

HMRC TARGETS LANDLORDS

HMRC are now warning Landlords of let property to take the opportunity of disclosure under the LET PROPERTY CAMPAIGN any rental profits not previously disclosed. They estimate that 1million such landlords are currently not disclosing either rentals or disposals for CGT. The loss is estimated at £550million per annum. It is thought that as most buy to lets have loans against them people believe that all repayments are allowable against income and that profits if any are small. We remind people that only interest on loans is allowable and that undisclosed profits discovered after the disclosure scheme ends will result in penalties of up to 100% of the tax found to be due.

UK TECH FIRMS SLOW ON PATENT UPTAKE

The number of patents being filed by UK technology companies is falling compared to overseas competitors according to a report by PwC.  It seems that overseas technology companies are far more astute yet aggressive with regard to the way in which patents both protect the technology and provide income streams in the future. There is little doubt that UK companies need to understand how best to account for patents in the first instance and then how to quickly develop the income flows from having the protection in place and stopping competitors.

HMRC NETS £110m FROM CGT UNDERPAYMENTS

HMRC collected £110m from investigations into underpayments of CGT in 2012/13.  The amount raised is a third higher than in the previous tax year.  HMRC’s clampdown targeted buy-to-let landlords and owners of multiple homes.  Claims for exemption on the sale of a property under principal private residence relief are under particular scrutiny.  Total receipts from CGT were £3.9bn in 2012/13

FCA URGES SMEs TO SIGN UP FOR SWAP SCHEME

The FCA has urged 1,900 small businesses to join its £3.75bn interest rate swaps compensation scheme before it closes this year. The regulator said that by the end of February banks had paid £482m - approximately 13% - of the compensation they have been told to hand over by the end of July. The average payout under the FCA scheme so far was £140,000 at the end of February and 3,430 companies have received compensation.

MIGRANT ENTREPRENEURS DRIVING UK JOB CREATION

A report from the Centre for Entrepreneurs has found that nearly half a million people from 155 countries have settled in the UK and launched businesses. In total there are 456,073 migrant entrepreneurs in the UK running active companies, with some running more than one venture. The majority of migrant entrepreneurs hail from Ireland, with 48,854 founders currently running businesses in the UK. In second place is India, with 32,593, and third is Germany, with 30,755.

  

BUSINESS OWNERS HAPPY TO REMAIN IN CHARGE

Aviva’s 2014 SME Pulse report has found that only 4% of small business owners would return to the workforce as an employee, compared to 25% in 2012. Two fifths of owners (41%) say they have a good work-life balance and just one in ten says running a small business has had a negative impact on family and friends. The report also found that over 60% of entrepreneurs turn to family and friends if they have a problem. After family and friends, SME owners look towards to the internet and other business owners.

LENDING TO SMEs FALLS

Figures from the BoE’s Funding for  Lending scheme have revealed that 34 banks and building societies using the credit facility withdrew £1.32bn of lending from SMEs between April and December 2013. The largest withdrawals were from RBS, which withdrew £2.2bn of credit, and Nationwide, which cut lending by £1.14bn. An RBS spokeswoman said its reduction in net lending to SMEs was due to its restructuring strategy as it runs down legacy assets. Meanwhile, the FLS data suggested that small challenger banks are beginning to fill the void. Aldermore lent £345m to small business, Shawbrook Bank £136m, OneSavings Bank £66m, and Yorkshire Building Society £45m. The largest single lender was Lloyds Banking Group, which extended £1.12bn to the sector, followed by Santander, which lent £447m.