Here are some of the key points from our detailed newsletter:
VAT flat rate scheme
This may lead many traders to move away from the FRS for VAT to being registered on a conventional basis. It seems the Government think there is abuse here when in fact they brought in a scheme to reduce the time it takes small businesses to undertake their VAT on a quarterly basis albeit with a small cash reduction.
These new measures apply for VAT periods starting after 1 April 2017 and the government have asked HMRC to publish detailed guidance on this by 5 December 2016. We will liaise directly with the clients impacted by this once the detailed rules are published.
Personal allowance and basic rate band
Now, sacrificed salary for pensions, cycle to work schemes, low emission cars and childcare will continue as before and the new rules will not apply. All other benefits will now give rise to the extra 12% National Insurance charge for the Employee. If you have sacrificed salary or have employees that have done so, you may want to review the arrangements. Existing arrangements in place at April 2017 are protected until at least April 2018.