Businesses have just 50 days to make significant tax savings before new taxes outlined in the autumn statement last year come into force.
Late last year the UK Government unveiled some 400 pages of new complex tax law, with many of the new taxes being applied from April 6th.
Businesses have a narrow window of 50 days in which to make significant tax savings and minimise the impact by effectively spending now to save later. The 2017 business tax landscape will see reduced reliefs on capital expenditure and an increase in taxes through extensive reforms to employee benefits.
Businesses with surplus cash have most to gain, but it is important that any tax saving decisions should not jeopardise cash flow, which is the most common reason for trading problems. Business taxes are broadly rising, and reliefs and incentives are contracting, with some set to disappear completely. Fortunately, Entrepreneurs Relief remains relatively untouched, which is important as it encourages the creation and growth of new businesses.
Businesses still have enough time to implement tax savings, including bringing forward company pension contributions before corporation tax rates fall; purchasing electric vehicles (100% capital allowances); taking advantage of 100% allowances under the business premises renovation scheme; maximising 100% annual investment allowance up to £200k; maximise R&D tax credits before they change and lock into lower tax rates on employee perks before they rise.