Business rates relief for enterprise zones

The Welsh Government has started two grant schemes to provide £20m in business rates grant relief for smaller companies in enterprise zones and £1.5m for renewable
power producers.

The Enterprise Zone Business Rate scheme will be open annually in each financial year until 2015/16. For the 2012/13 financial year the scheme will be open from 15 January 2013 until 11 February 2013.

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A Years Extension of tax free Capital Gains on investment in Small Enterprises

HMRC has revealed that the Government will extend capital gains tax (CGT) relief for investors in early stage enterprises for a second year. The initial Seed Enterprise Investment Scheme (SEIS) rules only covered gains realised in 2012/13 but now investors who will realise taxable gains in 2013/14 and invest in an SEIS company will have no tax to pay.

It is only the gain that has to be invested and not the actual proceeds. So if you sell an asset for say £100,000 and realises a chargeable gain (before exemption) of £40,000 then you only have to re-invest £40,000 and not the total proceeds of £100,000.

It is worth noting that even when the CGT relief expires, you can still claim 50% income tax relief on early stage investments and this will continue until 2017.

It is hoped that this extension will provide a boost to early-stage companies looking to raise equity finance. SEIS applies for shares issued on or after 6 April 2012. The rules have been designed to mirror those of EIS as it is anticipated that companies may want to go on to use EIS after an initial investment under SEIS. Should you have any queries regarding EIS or SEIS please don’t hesitate to contact Karen Best on 01656 867167.

 

Have you submitted your VAT return?

As many as 50,000 businesses that have failed to submit VAT returns will be targeted by HMRC this month with warnings that their tax affairs will be closely scrutinised.

More than 600,000 businesses have to put in VAT returns each month and most do so on time. But in a new campaign some 50,000 will be warned that, from 28 February, their tax affairs will attract greater attention.

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CHILD BENEFIT CHANGES – ARE YOU READY?

Half a million new people will be required to complete a Self-Assessment tax return for the year ending April 2013 after the new high income child benefit charge (HICBC) comes in to force from today.

Families with children and a parent earning more than £50,000 a year had a final chance this weekend to opt out of receiving child benefit or can continue to receive it and get drawn into the SA system. The new charge applies from 7 January, and anyone wishing to opt out of receiving child benefit for the 2012-13 tax year needed to do so before this date.

There are estimated to be over 700,000 households where one person is on over £60,000 and being in receipt of child benefit. Not even half of these claimants have opted out.

These are mostly people that haven’t been through SA before, so won’t be familiar with the system.

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 Karen Best on karenb@clayshawthomas.com

Self Assessment Tax Returns Year Ended 5 April 2012 – Have You Filed Yours Yet?

We are now half way through January and the impending deadline for the submission of self-assessment tax returns for the year ended 5 April 2012 on 31 January 2013 is fast approaching.

In order to avoid penalties arising for late submission you need to ensure that your return for the year ended 5 April 2012 reaches HM Revenue & Customs electronically by the on 31 January 2013.

You also need to ensure that any tax you owe is paid to them by this date as well in order to avoid interest charges arising.  You need to make sure that you leave sufficient time for any cheques to clear as payment by cheque must be cleared by 31 January 2013 to be recorded on your record and not just received by HM Revenue & Customs.

If you haven’t filed your return yet it’s not too late – here at Clay Shaw Thomas Limited we have a team of experts on hand to help – if you require any assistance with completing your self-assessment return for the year ended 5 April 2012 please contact karenb@clayshawthomas.com

 

Could 2013 offer your company a cash boost for R&D?

As businesses prepare themselves for a New Year of tough trading conditions our R&D tax specialist Denise Roberts encourages businesses to look again at R&D Tax Credits. For SME’s the cash back option of 25p for every pound spent on R&D can provide a useful cash boost. Also the cash back is no longer capped by the amount of PAYE/NIC the business is due to pay and the requirement for a at least £10k of spend on R&D has also gone.

Further good news on R&D Tax Credits was announced by the Government before Xmas in providing an R&D cash refund scheme for large companies which will provide a repayable credit of 9.1% for those companies making losses.

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