Businesses have until April 1st before new business taxes outlined in the Autumn Statement last year come into force, a leading business tax specialist is warning.
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 1st.
“Businesses don’t have long to make significant tax savings by effectively spending now to save later’” says Mark Pryce a tax partner with Campbell Dallas speaking at a March 14th tax planning event for clients.
He added: “Business taxes are broadly rising, and reliefs and incentives are contracting, with some set to disappear completely. Some of the new business taxes will include reduced relief on capital expenditure and increased taxes for employee benefits. Fortunately, Entrepreneurs Relief remains relatively untouched, which is important as it encourages the creation and growth of new businesses. 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.”
Mark Pryce said that businesses still have enough time to obtain tax savings, including bringing forward company pension contributions before corporation tax rates fall; reviewing the funding of cars used by their Directors and employees (e.g. low emission / electric vehicles can attract the largest savings; taking advantage of 100% allowances for costs of converting disused property under the Business Premises Renovation Scheme before it closes down; utilising the entitlement to 100% annual investment allowance on capex up to £200k; maximising R&D tax credits claims on innovative activities before it is changed and importantly get locked into lower tax on employee perks before they rise.