Spring Statement 2019

What you need to know:   Making Tax Digital   Philip Hammond reinforced that the mandatory digital record keeping for businesses with annual revenues above the VAT threshold (£85,000) will come into force from 1st April 2019. He called this an “important first step in this modernisation of the tax system to which the Government remains committed”. The Chancellor has also confirmed that the Government will adopt a “light touch approach” to all penalties relating to MTD for VAT in the first year of implementation. This approach is reserved for individuals and small businesses that are “doing their best to comply”, with no filing or record-keeping penalties due to be issued within the first 12 months. Mr Hammond said that the focus for MTD for VAT will be on “supporting businesses to transition”. Apprenticeships   updates to apprenticeship reforms announced at Budget that mean from April 1st employers will see the co-investment rate they pay cut by a half from 10% to 5%, at the same time as levy-paying employers are able to share more levy funds across their supply chains, with the maximum amount rising from 10% to 25%   Finance   The statement alongside the Spring Statement said: “The government stands ready to deliver its commitment in all circumstances to provide additional funding to the British Business Bank for venture and growth capital, as we leave the European Union and our relationship with the European Investment Fund...

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Nationwide building society delay small business lending.

Last year, Nationwide building society revealed plans to enter the SME loans market. This was great news for the SME who has struggled to get finance as the banks lose their appetite for lending. Unfortunately, after examining their balance sheet, the Prudential Regulation Authority has demanded that the Nationwide bolster their leverage ratio. A spokesman for the Nationwide said, “We have previously said that it is our strategic intention to enter the SME banking market and that we will do this at the right time for the society and our members. That remains our intention.” However they are now unlikely to launch a full SME service before 2016. Read more about it here in the Yorkshire...

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Osbourne’s £140 billion kick-start …

Osborne’s £140 billion kick-start – will it stimulate small business growth? This week, the Chancellor of the Exchequer, George Osborne, announced a £140 billion emergency scheme in order to try to avoid a second credit crunch.  Backed by the Treasury, the Bank of England is to offer money to high street banks to kick-start mortgage and small business lending.  As the Chancellor says, this funding is for “the business that wants to expand”. The funding for lending scheme will allow banks to ‘swap’ assets with the Bank of England in return for money that can be loaned out to small businesses and other customers.  In addition to this funding for lending scheme, the Bank of England will inject a minimum of £5 billion a month into financial institutions to improve their liquidity. With further details eagerly anticipated, some are worried about how the scheme will actually work.  However, in the current climate where credit can be hard to come by, this seems like a step in the right direction. Courtley...

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