ATFM

The planned increases to Corporation Tax Rates and what these mean for small business owners. Who will be affected? The corporation tax ‘main rate’ (currently 19%) is scheduled to increase considerably to 25% by April 2023. A new ‘small profits rate’ is also being introduced for business which make less than £50,000 profit a year. The main rate will be applied to businesses making more than £250,000 profit a year, with a ‘tapering’ of the two rates between these amounts.  Those companies under this lower £50,000 threshold will find themselves relatively unaffected by the new measures.  Businesses which find themselves between these rates will arguably be affected worst, having smaller profits to pay the extra tax from. For these companies, particularly which find themselves just over each of the limits announced, or indeed the tapering limits yet to be confirmed; additional tax planning will become an essential exercise going forward. Fortunately, these same companies will hav...

Here is a roundup of the Chancellor's 2021 Budget from yesterday. Finance & Taxation Pension Lifetime Allowance to be frozen Pensions to have access to ‘green investments’– FCA consultation to follow shortly No changes to rates of income tax, national insurance or VAT Personal income tax allowance to be frozen at £12,570 from 2022 - 2026 Higher rate income tax threshold to be frozen at £50,270 from 2022 – 2026 Stamp duty freeze extended for a further three months in England and Northern Ireland After this date, the starting rate of stamp duty will be £250,000 until the end of September. Stamp duty will then return to the usual level of £125,000 Corporation tax on company profits to rise from 19% to 25% in April 2023, with a taper Rate to be kept at 19% for about 1.5 million smaller companies 95% Mortgages The UK’s biggest lenders will be offering 95% mortgages guaranteed by the government from next month to help buyers with small deposits get on or up the property ladder. Sunak...