A local tax specialist is urging small businesses to spring clean their finances as they tackle a raft of changes from this April.
Alan Johnston, who runs TaxAssist Accountants in Goldenacre, said: “Although the Government has now decided not to increase National Insurance contributions for self-employed people following a major backlash, other announcements in the Spring Budget added to a long list of changes and new responsibilities for small businesses. We want to ensure that local business owners make the most of all relevant tax breaks and don’t get caught out by the new rules.
“Although some of the changes, such as reduced dividend tax allowance for director-shareholders, will not start until next year, there are significant challenges for local business owners which come into force from April this year.”
Key changes from April 2017 include:
- Corporation tax is cut to 19%
- VAT registration threshold rises from £83,000 to £85,000
- Businesses with very low cost bases who participate in the VAT flat rate scheme will pay a 16.5% fixed rate, they will however continue to charge VAT at 20%
- The National Living Wage rises to £7.50 an hour
- The cash basis accounting threshold for small businesses rises from £83,000 to £150,000
- Many local businesses will reach their staging date for workplace pensions and must automatically enrol eligible staff in a scheme and contribute to their pension pot
- And although unincorporated businesses with turnover below the new £85,000 VAT registration threshold have been given a further year to comply with quarterly reporting to HMRC, we’re urging local business owners to continue their vital progress on preparing for the new digital tax rules.
TaxAssist Accountants Goldenacre is a local business providing tax and accountancy advice and services purely to small businesses.
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