Spring Statement 2019

Posted by on Mar 13, 2019 in cloud accounting, economy, HMRC, SME, VAT | 0 comments

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 changes.”