Corporate Interest Restriction – new rules apply from April 2017 with the aim of restricting tax relief for interest expense, however, they can also apply to a reduction in value of loan relationship assets. We can help you manage your approach to this regime and advise which of the numerous elections should be made. It may also be necessary or advantageous to appoint a reporting company and file an Interest Restriction Return.
Corporation tax losses – significant changes to the way in which tax losses are relieved also came into effect from April 2017. On the plus side, new losses arising after March 2017 can be used more flexibly than previously, including a new ability to group relieve carried forward losses. However, there is also a downside, which is that offset of any unused losses from prior years may now be restricted, leaving some current year profits in charge to tax.
Making Tax Digital for Business – HMRC’s drive to digitise the tax system will first have an impact from April 2019 when VAT registered businesses will be required to keep records digitally and use software that can transmit VAT return data to HMRC electronically. Manual keying of VAT return data will cease to be permitted. Are you ready for this change?
“Off payroll” contractors – from April 2020 the burden of the so-called “IR35” rules will shift from the personal service companies used by many contractors to the businesses which engage them, unless those businesses are “small”. Large and medium sized businesses would be well advised to start planning for this change sooner rather than later.