Welcome to the latest issue of Strength in Numbers, our regular newsletter that is packed with informative articles and timely news which we hope will be of use to you.
With six months to go until IR35 off-payroll rules for contractors are extended to the private sector, tax partner Tim Adcock has written an in-depth article on the new tax rules for individuals working via their own companies for medium or large businesses. These reforms could dramatically increase costs for both private sector businesses and personal service companies so there is a pressing need to be prepared for the changes. However, it is important to note that this new tax legislation is subject to the passing of the Finance Bill 2019-20 which is due to be enacted after Budget 2019, the date of which has yet to be finalised.
The Office of Tax Simplification has recently recommended sweeping reforms of inheritance tax in a bid to reduce complexity. Latha Rodgers, director of tax, outlines the key recommendations of the report, and in a separate article, advises on how to make the most of inheritance tax allowances on residential property.
We also have an update from tax manager Phil Hartley for SMEs not currently utilising the creative industry tax reliefs. Examples of activities that could qualify for the tax reliefs include the running of a museum or art gallery for the public, the production of a short animated film about your business activities, or the production of a video game. A claim can be reviewed retrospectively and result in a refund of corporation tax or payment of a cash credit from HMRC, generating some extra cash for the business.
Also in this edition…
Alongside tax, our other specialist services have also contributed articles to this edition:
- partner Mike Buxton has written about the new accounting regulations for solicitors which will come into force on 25 November 2019.
- Jeremy Oddie, corporate recovery and insolvency partner, comments on the government’s plans to introduce legislation giving HMRC preferential status over other creditors in company insolvencies.
- our wealth management team discuss how to cope with investment market volatility, and
- our payroll team have advice for employers hiring people over the state pension age and the correct way to process national insurance contributions.
You can also read about what’s been happening at Mitchell Charlesworth, including recent promotions, new client wins and our latest fundraising activities.
We hope you find the articles in this issue interesting and of practical use. If you would like to discuss any of the items in this newsletter or need advice on general financial, taxation and business matters, please contact your local Mitchell Charlesworth office.
Countdown to Brexit
Finally, Brexit news continues to dominate the headlines and the UK’s exit from the EU is fast approaching, yet the outcome is still uncertain. There is a need for businesses to consider how they may be impacted by a ‘no-deal’ Brexit on 31 October and what steps they may need to take to ensure seamless trading pre and post exit. We are working with a number of businesses to consider the impact of a ‘no-deal’ Brexit, in particular importers and exporters and those employing EU staff, and would be happy to help if you would like any assistance. Please contact VAT partner, Alison Birch on 0161 817 6100.
- Coping with market volatility
- Off payroll working for the private sector
- Proposals for the simplification of Inheritance Tax
- IHT thresholds on residential property
- Creative Industries Relief
- New accounting rules for solicitors in November 2019
- HMRC's preferential status in insolvency
- Employing people over the state pension age: National Insurance Contributions
- MC News update October 2019