Phillip Hammond faced a difficult task in this budget. He was obviously reluctant to abandon the fiscal prudence that he and his predecessor, George Osborne, truly believe in. However, he was under considerable pressure to do something to stimulate the economy and relax the 'austerity' measures that are in danger of making the Conservative party unelectable for large swathes of the population. His last budget was percieved as a bit of a disaster, with a number of measures being quickly abandoned. He could not afford that to happen again.
So, from a tax point of view, it was mostly good news.
Following the introduction last year of the requirement for companies to maintain a register of Persons of Significant Control (PSCs) there have been further changes in recent weeks which now oblige companies to report all changes to their PSC information on an ongoing basis, rather than waiting until the next Confirmation statement is filed.
Companies now have 14 days to update their PSC register and a further 14 days to notify Companies House of the changes.
As a reminder a Person of Significant Control is someone who meets one or more of the following conditions:
An individual who holds more than 25% of shares in the company.
An individual who holds more than 25% of voting rights in the company.
An individual who holds the right to appoint or remove the majority of the board of directors of the company.
An individual who has the right to exercise, or actually exercises, significant influence or control over the company.
Where a trust or firm would satisfy one of the first four conditions if it were an individual. Any individual holding the right to exercise, or actually exercising, significant influence or control over the activities of that trust or firm.
A new batch of forms (PSC01 to PSC09) have been released to deal with any changes, and these need to be filed online in order to keep the records up to date.
If you have any queries regarding this please contact Karen or Hugh to discuss further.
Following the failure of Teresa May to win a majority at the election there is a lack of clarity as to which of the changes to the tax system will go ahead. Will there now be pressure to increase the tax on higher earners by either not increasing the higher rate threshold or otherwise changing the system to get a bit more tax out of higher earners? Will the reduction in the tax-free dividend allowance from £5,000 to £2,000 be re-introduced having been hastily withdrawn?
Ian Sheekey left Hugh Davies & Co to join Total Tax in Fordingbridge after more than twelve years. We are sorry to see him go but in some ways it may be beneficial to the firm. We are now a smaller firm, all working on the same floor of the office. This will be good for efficiency and client service.
Under the terms of our agreement I cannot act for his clients and he cannot act for mine. If this inconveniences some clients who still wish to be looked after in Salisbury there are arrangements in place for meetings and the drop off of records.
The Chancellor Philip Hammond will deliver his first Autumn Statement on Wednesday 23 November, it has been announced. The date was revealed in an appearance before the House of Lords Economic Affairs Committee. He said: ‘In the run-up to the Autumn Statement, I will be engaging with Britain’s business leaders and employee representatives through a series of industry round tables, meetings and visits.’
At Hugh Davies & Co. we are always keen to hear about your experiences as local businesses and wherever possible provide you and your business with the necessary support. We have heaard that high street banks are withdrawing and reducing small firms’ overdrafts at a rapid rate, it has transpired.
New data from the Bank of England suggests that overdrafts worth £5 million have been cut every day since 2011.
Potentially this means that hundreds of thousands of British businesses have had their growth impeded and working capital restricted.
Whilst there are over seven million Britons who will be able to boost their state pension through a new ‘top-up’ scheme the Government has launched, the Department for Work and Pensions (DWP) admits that the scheme will not be suitable for all pensioners, with around 265,000 expected to take up the offer.
A successful claim is made up of compensation (based on the sum of the original payments you made) plus interest (the interest you would have earned if the cash you spent had instead been invested).
The compensation element of the payment is free from tax but the interest element will be taxable and hence should be declared on your personal tax return. HMRC will already have been notified of anyone who has received a claim.
Often tax will have been deducted at source from this amount, and no
This was probably the most radical Budget for small business for many years. One has to admire George Osborne for the sleight of hand in presenting the Budget as being pro-business whilst at the same time making sure that a very large number of small businesses pay a significantly larger share of their income in tax than before. And the clever bit is that we can't really complain about it!