Spring Statement 2019 Highlights
We have summarised below some key points from the Spring Statement 2019. You can find the full statement on the gov.uk website.
Making Tax Digital
Business owners will be pleased to hear that the government will not be issuing filing and record keeping penalties during the first year of Making Tax Digital for VAT, as long as businesses are doing their best to comply.
The government have no plans to mandate Making Tax Digital for any new businesses during 2020. In addition, the pilot scheme for income tax will continue. However it will not become mandatory until at least 2021.
From the 1st April, employers will see the co-investment rate they pay cut by half from 10% to 5%, at the same time as levy-paying employers are able to share more levy funds across their supply chains, with the maximum amount rising from 10% to 25%.
National Insurance Contributions
The government will issue draft regulations to restrict the allowance to businesses with an employers’ NI contributions bill below £100,000.
Structures and Building Allowance
Draft legislation published on introducing a new, permanent allowance for investments in non-residential structures and buildings to create a more competitive tax regime for businesses.
Enterprise Investment Scheme
The government will publish draft guidelines for comment alongside draft legislation. The document will contain guidelines stating HMRC’s proposed policy and practice for approving funds. The legislation will include powers for HMRC to set appropriate conditions and approve funds.
Capital gains tax private residents’ relief
A consultation on the changes announced at Budget 2018 to lettings relief and the final period exemption, which extend private residence relief in capital gains tax.
The government has announced consultation is open on some new proposals and schemes:
Business energy efficiency scheme
To help smaller businesses reduce their energy bills and carbon emissions, the government is launching a call for evidence on a Business energy efficiency scheme to explore how it can support investment in energy efficiency measures.
This call for evidence seeks views on various proposals for a new Business Energy Efficiency Scheme focused on SMEs. The government are keen to hear from anyone with an interest in how a new scheme for SMEs could be designed. The consultation closes at 11:45pm on 8 May 2019.
Consultation on Infrastructure Finance
The government has published a consultation on Infrastructure Finance, seeking views on how the government can best support private infrastructure investment in the context of the UK’s changing relationship with the European Investment Bank.
All interested parties are invited to respond by 5 June 2019.
Tax avoidance, evasion & non-compliance
R&D Tax Relief
The government will carry out a consultation on preventing abuse of the relief for small or medium-sized enterprises.
Insurance Premium Tax
A call for evidence on where improvements can be made to ensure that Insurance Premium Tax operates fairly and efficiently.
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