is an introduction only and should not be used as a definitive guide,
since individual circumstances may vary. For specific advice please
Rate VAT scheme changes
From 1st April 2017
a business will be required to use a flat rate percentage of 16.5% if it
is a 'low cost trader'. This is equivalent to 19.8% of the
net turnover leaving almost no credit at all for the VAT incurred on
purchases. A low cost trader is one whose expenditure on goods is less
than 2% of its gross turnover. 'Goods' does not include expenditure on
services such as rent, IT support, telecoms etc. or expenditure on capital
iitems, motor expenses, food or drink.
you think this may affect you , you may wish to consider deregistering if
your turnover is below the threshold, or coming off the flat rate scheme.
Please contact Debbie for individual advice.
From April 2017 most salary sacrifice
scheme will be subject to the same tax as cash income. Schemes where
employees exchange some of their salary for a non-cash benefit in kind
(such as a mobile phone) to allow both employer and employee to make a tax
saving, have been axed.
types of salary sacrifice schemes will be exempt, including pensions,
pensions advice, childcare, ultra-low emission cars (emitting less than 5%
CO2) and Cycle to Work.
arrangements in place before April 2017 will be protected for up to a
year, and arrangements in place before April 2017 for cars, accommodation
and school fees will be protected for up to four years.
ISA limit will increase from £15,240 to £20,000 in April 2017
The money purchase
annual allowance, the amount you can put in a pension without being taxed
after you have started taking income from it, will be reduced from
£10,000 to £4,000 in April 2017.
From April 2017, non-doms will be deemed UK-domiciled for tax
purposes if they have been UK resident for 15 of the past 20 years, or if
they were born in the UK with a UK domicile of origin