Download your copy of our budget report below:
Our accountant Lauren Tyler MAAT has reviewed the key points:
- IR35 private sector to have same public sector rules from April 2020, with the focus on large and medium size businesses. Support needs to be given to agencies and contractors to ensure they do not issue a blanket inside IR35 decision on all contracts/contractors. HMRC have said they will be exploring further options for consequences of businesses failing to use reasonable care when making their decisions
- Apprenticeship levy has been halved for smaller businesses so this will be a welcome change for the smaller businesses caught by the levy.
- Entrepreneur relief has been extended to two years, this will not affect the long-term contractors that have been trading for more than two years. However, anyone thinking of closing their limited company will need to discuss their tax planning with their accountant to maximise any relief or allowances available to them.
- VAT registration threshold is remaining the same for another 2 years. It will be interesting to see in the future how this will affect contractors as some simply do not wish to be registered for VAT.
- Restriction on R&D tax relief for SMEs to be restricted to three times the PAYE and NIC liability so there is the potential for this to have a considerable effect on previously qualifying PSCs who do not incur a large PAYE/NIC tax bill.
If you do have any questions please contact your Dolan Accountancy Accountant or if you’re not yet a client please call us on 01442 795 100 or email info@dolanaccountancy.com.
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