Tax Outlook for 2020
With Brexit looming, the tax outlook for 2020 is still largely unknown and is unlikely to be fully resolved until The Budget on 11 March.
However, following the Conservatives obtaining a significant majority in the recent election we do know that certain policies will be implemented during 2020.
Whilst there is currently a review underway which is anticipated to be concluded in February, it is still widely anticipated that the off payroll rules for the private sector will be introduced with effect from 6 April 2020. Planning, both for engagers and service providers needs to be undertaken so you are aware of the implications of these changes and how engagements will need to be operated. We will be holding a complimentary seminar on this topic later in the Spring.
Secondly, a review of Entrepreneurs Relief has been promised to determine its effectiveness. It is unknown what the implications of this review will be but it could lead to it becoming more difficult to obtain this valuable relief. If you are planning a future exit and obtaining Entrepreneurs Relief, now may be the time to start executing these plans before the rules potentially change.
Finally, there are going to be changes made to the definition of R&D for tax purposes, a review of qualifying costs and an increase in the RDEC rate to 13%. This demonstrates the continued backing of a valuable tax relief from the Conservative government and is likely to result in more activities and costs qualifying for the relief.
If you have any questions in relation to the above, please contact Aaron Phillips:
Director of Tax01244 323051Chester