A single corporation tax rate of 20% will apply from 1 April 2015 whatever the level of your company’s profits.
As already announced in the 2014 Autumn Statement there will be a new 25% rate of tax on profits artificially diverted by multi-national companies away from the United Kingdom, being labelled “Google Tax”.
The Government will bring in new legislation from 6 April 2016 to allow people who are already receiving income from an annuity to agree with their provider to assign their annuity income to a third party in exchange for a lump sum or an alternative retirement product. Currently such action would give rise to a 55% charge, but this is to be abolished. This change will allow those who are already in receipt of a pension annuity to access the new flexible pension rules.
The VAT registration limit has been increased by £1,000 to £82,000 from 1 April 2015. The de-registration limit also increased by £1,000 to £80,000.
As already announced in the 2014 Autumn Statement, companies that are Small and Medium sized Enterprises (SMEs) carrying out qualifying Research and Development can currently claim a corporation tax deduction of 225% of their qualifying spend. This relief is being increased to 230% with effect from 1 April 2015. In order to improve the cash flow of loss making SMEs the tax rules allow the company to surrender the loss attributable to the enhanced R&D spend for a tax refund. The current tax refund rate is 14.5% of the loss attributable to the enhanced expenditure.
Many mortgage lenders now request a copy of the official HMRC tax calculation (SA302) as confirmation of income. As the result of lobbying from the accounting profession, there has been a change of heart. From January 2015, self-employed individuals with a self assessment online account can provide proof of their income by downloading copies of their Tax Calculation and their Tax Year Overview from the HMRC online service, which will be the evidence they need to support a mortgage application.
These new accounts to help first time buyers save for a deposit to buy their first home will be available from Autumn 2015. First time buyers over 16 will be able to open these special ISAs, make an initial deposit of up to £1,000 and then save up to £200 a month, and the Government will boost it by 25%. That’s a £50 bonus for every £200 saved, up to £3,000 in total topping up their £12,000 savings to £15,000.