Our lead article considers changes to the VAT Flat Rate Scheme (FRS) which allows small businesses to pay over VAT on all their sales at a flat rate rather than output VAT on sales less input VAT on purchases. The introduction of a new 16.5% higher percentage for ‘limited cost traders’ may mean some businesses should opt out of the FRS.

In the article titled ‘New finance service’ we report on a new scheme for small businesses that are experiencing difficulty in raising finance. Businesses which have been refused finance by their bank may be referred to three finance platforms giving them access to other finance providers.

Welcome changes are being introduced for companies which will increase the options available for tax relief on the use trading losses from 1 April 2017. Some restrictions will apply to large companies and groups.

Entrepreneurs’ Relief is a valuable relief, taxing up to £10 million of capital gains at 10%, where conditions are met. We report on two Tax Tribunal cases where HMRC challenged taxpayers’ claims to the relief on the disposal of shareholdings. We also consider the tax breaks for those investing in Venture Capital Trusts which have now been available for over 20 years.

Have you checked your state pension forecast recently? A recent Tribunal concluded that the onus is on the taxpayer to review their position during their working life. It is important to ensure your contributions records are complete, especially if you have been self-employed. We also report on a potential pitfall for ‘stay at home’ partners of those opting not to claim child benefit, who may be missing out on accruing entitlement to their state pension.

The government has introduced a new Targeted Anti-Avoidance Rule (TAAR) which seeks to tax the distribution on a winding up of a close company as income rather than a capital gain. This could potentially catch those who start a similar trading activity in the two years following the winding up.

We are sure you will find the newsletter an interesting read. Please contact us if you have any questions regarding any of the articles we have included in our newsletter or if you would like further information on a topic we haven’t covered. Your views are always important to us and we would welcome your feedback.

Interested in our accountancy services?

Why not contact Wilkes Tranter & Co Limited today for more information or a FREE no obligation quote.

Contact us
acca.png xero.png freeagent.png sage.png quickbooks.png