2019 has undoubtedly been a challenging year for many business owners, with further delays to Brexit, a cancelled Budget and an unexpected general election earlier this month.
Looking back over the past 12 months, in April we saw Making Tax Digital (MTD) finally become mandatory for VAT registered businesses with turnover exceeding £85,000 and we continue to support our clients as they embrace cloud accounting.
In April we also saw Capital Gains Tax (CGT) extended further; requiring non-residents to pay the tax on gains arising from the disposal of any immoveable UK property or land.
Ahead of April 2020, property owners disposing of UK residential property should be aware that any CGT due will be payable to HMRC within 30 days of completion, rather than the 31 January following the end of the tax year in which the sale is made.
Furthermore, from 6 April 2020, the 18 months final period exemption for Principal Private Residence Relief (PPR) will be reduced to nine months and lettings relief will be restricted to owners who share occupancy with a tenant.
Construction businesses begun to prepare for the VAT reverse charge this year, which was originally scheduled to take effect in October 2019.
The regime will see those within scope pass VAT through the supply chain, to be accounted for by the ultimate contractor but, following concerns that many would not be ready in time, implementation has now been deferred to October 2020.
IR35 has also been hitting headlines this year as, from April 2020, private sector organisations paying contractors will be responsible for determining the IR35 status of those working for them through an intermediary.
As we await news of the next fiscal event, we can help you to put realistic plans in place that account for those changes to tax and government policy that we do know about.
Contact me or a member of our team by visiting www.georgehay.co.uk or calling 01767 315010.