The New Rules on Child Benefit

From 2013, changes to the rules on child benefit mean that higher or additional rate taxpayers will be liable to a tax change. The reforms will affect an estimated 1.2 million households, while thousands of people will be required to complete a self assessment tax return for the first time.

For more information download our Child Benefit guide

If you would like further advice on this or any other aspect of your personal taxation please contact Sarah Curzon on sarahc@clayshawthomas.com

 

R&D Cash Back Scheme Extended

Following extensive consultation the Government has today made an announcement regarding its decision on the implementation of an R&D cash refund scheme for large companies. The scheme will basically provide for the following;

  • A taxable credit at the headline rate of 9.1%
  • Fully payable net of tax to companies with losses
  • Available for qualifying costs incurred on or after 1 April 2013
  • Available for surrender as group relief.

This is a much welcome incentive for large companies who have long argued that whilst R&D tax relief is an attractive relief, in times of economic hardship when many companies are making losses there is no real visible or cash flow benefit.

This relief will not only be available to large companies but also for those small and medium sized companies who have not been able to make cash back claims for expenditure which has been subsidised or subcontracted. If you want to discuss how much this relief could potentially help your cash flow then don’t hesitate to call Denise
Roberts

Tax Treatment of Polytunnels

HMRC have revised their view of the tax treatment of polytunnels, the plastic-covered greenhouses often used in commercial agriculture.  Most were previously considered by HMRC to be fixed structures or, in some cases, as premises.

HMRC have accepted that not all polytunnels can be classified as fixed structures or be regarded as providing the premises for growing fruit and have stated that Polytunnels
should qualify for plant and machinery capital allowances under part 2 of CAA
2001 if they are neither fixed structures nor premises.

Whether or not a structure will qualify for plant and machinery allowances will depend on the facts of each case, including exact use..

If you have been refused a claim previously or think you may be entitled to make a claim please contact sarahc@clayshawthomas.com

Source Revenue and Customs Brief 32/12

 

Early Christmas Present for Employees with EMI share option

Both employees and companies with an Employee Management Incentive (“EMI”) share option scheme got an early Christmas present yesterday as the Draft 2013 Finance Bill announced that the option holding period now counts towards the qualification for Entrepreneurs Relief (“ER”) and the 10% rate of tax.

For an employee, the enhanced ER means they can qualify for the 10% tax rate on the first £10million of gains when disposing of shares acquired under EMI, if the EMI option has been held for at least a year. This change also recognises the practical reality that in many cases employees only want to exercise their options and commit to paying for the shares when sale proceeds are available ie at an exit.

For the employer, it means that under an EMI option at least 90% of the gain can be delivered as a reward to employees, there is a saving of 13.8% National Insurance Contributions and the company usually claims 100% of the gain on exercising an option as a corporation tax deduction.

If you want to discuss the changes or the possibility of rewarding staff by using a share scheme then please contact Denise Roberts

Autumn Statement

Yesterday’s Autumn statement mainly focused on the Governments budget deficits and borrowing, the economic recovery and tackling tax avoidance. It did however, contain some good points for Welsh businesses and families.

For full details please go to www.clayshawthomas.com/autumn-statement for our autumn statement summary. The summary contains a host of autumn statement changes that could affect you, your business or your tax planning strategy.

Please contact us as tellmemore@clayshawthomas.com for any advice regarding the autumn statement or any other matters.