The main news is still about Making Tax Digital, but we wanted to give a quick summary of some of the other business taxes as well so that you are aware of what may impact your business in the next tax year 2019/20.

Making Tax Digital

From 1st April 2019, all VAT registered businesses with a turnover above the VAT threshold (currently £85,000) must keep digital records for purposes and provide their VAT return information to HMRC using MTD functional compatible software. More information can be found in our blog – Software for Making Tax Digital.

Corporation Tax rates

The main rate of corporation tax is currently 19% and will remain at this rate for next year. The rate will fall to 17% for the Financial Year beginning on 1 April 2020.

Class 2 and 4 NICs

Class 2 and Class 4 National Insurance Contributions will continue as they are currently. There are no plans to make changes in this Parliament.

UK Property income of non-UK resident companies

From 6 April 2020, non-UK resident companies that carry on a UK property business, or have other UK property income, will be charged to corporation tax, rather than being charged to income tax as at present.

Capital Allowances

Some changes are made to other rules relating to capital allowances:

• A reduction in the rate of writing down allowance on the special rate pool of plant and machinery, including long-life assets, thermal insulation, integral features and expenditure on cars with CO2 emissions of more than 110g/ km, from 8% to 6% from April 2019.

• Clarification as to precisely which costs of altering land for the purposes of installing qualifying plant or machinery qualify for capital allowances, for claims on or after 29 October 2018

• The end of the 100% first-year allowance and first-year tax credits for products on the Energy Technology List and Water Technology List from April 2020

• An extension of the current 100% first-year allowance for expenditure incurred on electric charge-point equipment until 2023.

Also, a new capital allowances regime will be introduced for structures and buildings.

It will be known as the Structures and Buildings Allowance and will apply to new non-residential structures and buildings. Relief will be provided on eligible construction costs incurred on or after 29 October 2018, at an annual rate of 2% on a straight-line basis.

Next time we will share some more information about changes and measures being put into place which may affect your business.

We hope you found this useful if you would like to discuss how any of the changes above will impact your business, please do give us a call on 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..