Blog posts tagged in Budget
Prior to the release of the 2016 Autumn budget let's remind the new Chancellor of the Exchequer, Philip Hammond of what he said as an MP
“A taxpayer is entitled to know with certainty – be it an individual or a multinational corporation – what he may or may not do in planning his tax affairs. He is entitled to expect that his treatment be laid down in statute, not determined by administrative fiat; he is entitled to expect that another taxpayer in similar circumstances will receive treatment similar to his; and he is entitled to be protected from retrospective or retroactive legislation.”
Some of the key changes that will impact small businesses in particular are set out below:
Taxation of dividend income from April 2016. The present 10% dividend tax credit is being abolished from April 2016. In its place an annual dividend tax allowance of £5,000 is being introduced. Dividends received will be free of further charge to Income Tax up to this limit. Above the £5,000 limit dividend income will be taxed as follows:
The Chancellor will have upset many buy-to-let landlords with his announcement that from April 2017 tax relief on mortgage costs is to be restricted to the basic rate of tax. Landlords of residential properties have benefited from tax relief on finance charges, such as mortgage interest for many years. The mortgage tax relief for homeowners was withdrawn 15 years ago.
In a recent report, the Bank of England was clear that the huge growth of buy to let mortgages could adversely affect the UK economy. The drive for these mortgages is being partly driven by the new pension freedoms and the current low interest rate environment.
Exceed CA (www.exceedca.com) and Caban Investments UK (www.caban.co.za) are proud to announce the formation of a new accounting firm, Exceed TBL Accountants Limited, which offers SA companies infrastructural support in selling their products and services in the UK.
Caban will be emulating the SA model in the UK . Exceed TBL Accountants Ltd is equally held by TBL Capital Limited and Exceed (UK) Limited.
A healthy business demands routine checks and examinations.
As a business surpasses the initial start-up phase, basic survival is the measure of success. At this stage, there are still limited systems and employees; there may be a marginal profit; expenses are covered and cash flow can and must be projected. Failure to thrive can be attributed to owner burnout, lack of vision, insufficient funds and marketplace factors.
Caught between a rock and a hard place, George Osborne pleaded his case for continued austerity in his fourth Budget whilst maintaining the UK economy was on track to recovery.
Overall his budget was fiscally neutral – any tax savings to be funded by decreases in public expenditure.
There were a few surprises including: the £10,000 tax free personal allowance, brought forward to April 2014; financial support for prospective home owners; if you are a beer drinker, there will be a 1p reduction in beer duty and the September increase in petrol duty has been scrapped.