Research & Development (R&D) tax relief is one of the most generous corporate tax reliefs offered by the UK Government, but many businesses miss out as they wrongly believe they are not eligible to apply.
The Chancellor announced in the Spring Budget that the VAT rate applicable to the installation of energy saving materials and technologies will be reduced to 0%, from 1st April 2022 until 31st March 2027.
The Fifth EU Money Laundering Directive, commonly known as 5MLD, which took effect for trusts from 6 October 2020, then extended this requirement to now apply to the vast majority of trusts (even non-taxable trusts), unless specifically excluded.
Whilst the Chancellor’s measures are all welcome, they are just a drop in the ocean compared to the massive increase in input costs faced by farmers in recent months.
Whilst the support for Business was less apparent during Rishi Sunak’s Spring Statement, the focus was on consultation over the summer with a view to cutting taxes and encouraging investment for business in the Autumn.
The Chancellor confirmed that from 6th July he will raise the NIC threshold for employees and the self-employed, so that it matches the £12,570 income tax personal allowance, which will help many taxpayers who are currently facing a cost-of-living squeeze.
It has been reported in the Financial Times that the Chancellor is preparing to face pressure from the PM to offer new help to households while balancing the fears that inflation could rise to 7% in May.
This new regime is designed to be proportionate, penalising businesses who persistently miss their submission obligations, rather than those who make occasional mistakes. This is good news for businesses who make occasional late returns or payments, as the penalties in these circumstances will be relatively small.