Skip to main content

Key points of spring budget.

Tax
Capital allowances: the government is introducing full expensing. Companies incurring qualifying expenditure on the provision of new plant and machinery on or after 1‌‌‌ April‌‌‌ ‌2023 but before‌‌‌ ‌1‌‌‌ April‌‌‌ ‌2026 will be able to claim new temporary first-year allowances. These allowances are: 100% first-year allowance for main rate expenditure – known as full expensing; and a 50% first-year allowance for special rate expenditure.

Research and development:  a new credit rate will be available to R&D intensive loss-making companies whose R&D expenditure constitutes at least 40% of total expenditure. Qualifying companies will be able to claim a payable credit rate of 14.5% for qualifying R&D expenditure. The changes will take effect from 1‌‌‌ ‌April‌‌‌ ‌‌‌‌2023 with eligible companies able to claim once the Finance Bill has received Royal Assent.

Reforms to audio visual tax relief:following a public consultation, the film, TV and video games tax reliefs will be reformed, becoming expenditure credits instead of additional deductions from‌‌‌ ‌1‌‌‌ ‌April‌‌‌ ‌2024. The new Audio-Visual Expenditure Credit will replace the current film, high-end TV, animation and children’s TV tax reliefs. Film and high-end TV will be eligible for a credit rate of 34% and animation and children’s TV will be eligible for a rate of 39%. The new Video Games Expenditure Credit will have a credit rate of 34%.The current rates for these reliefs have been extended by a further 2 years. Museums and Galleries Exhibitions relief, which was due to expire in March‌‌‌ ‌2024, has been extended until March 2026.

Pensions lifetime allowances:Spring Budget abolishes the LTA and increases the Annual Allowance from £40,000 to £60,000. These changes will take effect from April‌‌‌ ‌2023.

Indirect taxes:the cut in the rates of Fuel Duty introduced at Spring Statement in March‌‌‌ ‌2022 will be extended for a further 12 months. As previously announced, the government will legislate in Spring Finance Bill 23 for a new structure for alcohol duty, based on the principle of taxation by strength, as well as 2 new reliefs. Duty rates under the revised structure on all alcoholic products produced in, or imported into, the UK are being increased in line with the Retail Price Index (RPI). The new Draught Relief is being increased from 5% to 9.2% for qualifying beer and cider products, and from 20% to 23% for qualifying wine, spirits based and other fermented products. These changes will take effect from‌‌‌ ‌1 August‌‌‌ ‌2023.

Simplification:

Extending the Payrolling Registration Service for Benefits in Kind (PBIK) to Authorised Agents: 

this measure will allow authorised tax agents to register for the PBIK service on behalf of their clients. It will ensure that those employers, who provide benefits in kind (BiKs) to their employees, will be able to report them to HMRC in real time through their payroll via their agent. This will enable HMRC to simplify and modernise the service by moving away from a paper based retrospective reporting system to a digital one that collects tax in real time.

Cash Basis reform: the government is consulting on reforming the cash basis for the self-employed, a simplified way for over 4 million sole traders to calculate taxable profits for income tax purposes. This consultation will run from 15‌‌‌ ‌March ‌‌‌2023 to 7‌‌‌ June‌‌‌ ‌2023.

Tax administration customs:the government is publishing a discussion document exploring how HMRC can simplify and modernise Income Tax services as part of its Tax Administration Framework Review. The government has also announced a set of customs measures focused on the simplification of customs import and export processes to reduce admin burdens for traders has been unveiled.

www.sba.tax
Labels:

Comments

Post a Comment

Cloud Bookkeeping

HS2 cost cuts new routes and add delays.

 Trans­port depart­ment offi­cials have begun work on «Project Sil­ver­light» sug­gest­ing the high­speed rail scheme might face four addi­tional years of delay. The planned High Speed 2 rail line faces fur­ther delays of up to four years and more cuts to the project under plans being drawn up by min­is­ters to rein in its bal­loon­ing costs. The extra delays to the coun­try’s biggest infra­struc­ture project would mean that it would not be com­pleted until as late as 2045 — 12 years after ori­gin­ally planned. «This is a func­tion of infla­tion; we are hav­ing to find huge sav­ings because the cost of everything the depart­ment is already doing will have become so much more expens­ive by then,» said one gov­ern­ment offi­cial. In Octo­ber, the FT repor­ted that the Treas­ury had asked HS2’s man­age­ment team to identify poten­tial cuts or «scope reduc­tions» to the high-speed line. Trans­port depart­ment offi­cials have sub­sequently begun work on Project Sil­ver­light aimed at fi...
4 comments
Read more

Google has launched its Bard chat­bot.

  Google has launched its Bard chat­bot in a move to rival OpenAI’s pop­u­lar Chat­GPT, as it seeks to make up lost ground in the race to com­mer­cial­ise gen­er­at­ive arti­fi­cial intel­li­gence tech­no­logy. Google said that Bard, which provides answers to text­based ques­tions, will be run sep­ar­ately from its Google Search engine. In recent weeks, gen­er­at­ive AI has also been integ­rated into widely used pro­ductiv­ity applic­a­tions, such as Google’s Work­space includ­ing Google Docs and Gmail, and Microsoft’s Office 365 soft­ware, as well as into pop­u­lar apps such as Duolingo, allow­ing mil­lions of people to start inter­act­ing with the tech­no­logy. «We want to get feed­back and gradu­ally phase up the num­ber of people who have access to Bard, and the reason for that is we want to be able to test and learn from that before we roll it out very widely,» said Zoubin Ghahramani, vice-pres­id­ent of Google Research. Bard is built on top of Google’s AI tech­no­logy known a...
3 comments
Read more

Doubt on CS's collateral.

  Credit Suisse provided an emergency $140mn loan to Greensill Capital based partly on invoices to companies that deny ever doing the business stated on the documents. The Swiss bank provided the loan in October 2020, less than five months before the collapse of Greensill, a supply chain finance firm that counted former British prime minister David Cameron as a senior adviser. Invoices issued by metals magnate Sanjeev Gupta’s Liberty Commodities and sold to Greensill formed part of the collateral for the loan, according to documents seen by the Financial Times and people familiar with the transaction. Yet several of the parties named on the invoices have told the FT they did no business with Liberty. GFG has consistently denied any wrongdoing. Credit Suisse’s loan had a clause dictating that the collateral value had to be equal to or greater than the $140mn borrowed. The terms of the debt agreement only allowed invoices on Green-sill’s balance sheet to count towards this tally if t...
2 comments
Read more