Entrepreneur’s Relief Consultation
A change will be considered to the qualifying rules for Entrepreneur’s Relief that does not penalise individual’s eligibility for relief when their shareholding falls below 5% due to an increase in investors. One of the new proposals involves individuals being entitled to relief on gains on shares before the shareholding falls below 5%.
Self-Funded Work-Related Training
A consultation is looking at extending the tax relief for self-funded training by employees and the self-employed to encourage more individuals to improve their skill range.
Security Deposit Legislation
HMRC is seeking to extend the legislation that enables it to require high-risk businesses to provide an upfront payment where it has reason to believe that there is a high chance the business will choose not to pay its tax.
Digital Payments and Cash
A consultation is to review how cash payments can remain accessible while seeking to clamp down on tax avoidance and money laundering. At the same time the review will seek to enable digital payments to be made in as many situations as possible.
The Plastic Problem
Changes to the tax system or charges will be explored with a view to reducing the amount of single-use plastics.
Tax Compliance With Earnings From Online Platforms
An improved system to help individuals comply with their tax obligations for money earnt from online platforms (Ebay, Airbnb etc) will be developed.
Business Rates Revaluation
The next revaluation of business rates will be brought forward to 2021 and will be based on market rental values on 1st April 2019 (this is four years after the last revaluation).
VAT Registration Threshold
The current £85,000 threshold will be reviewed and compared to other countries with a view to easing the burden on small businesses who may be put off growing their business.
Overseas VAT Collection
Overseas businesses currently selling to UK customers often do not pay the correct VAT. A new consultation will attempt to create a level playing field by extracting VAT from overseas sellers.
National Living and Minimum Wage Increase
The rates will increase next month as follows.
National Living Wage £7.83
National Minimum Wage 21 to 24 £7.38
18 to 20 £5.90
Under 18 £4.20
By 2020 the government aim to deliver 3 million new apprenticeships with up to £80m of funding for small businesses.
From 6th April 2018 the tax-free dividend allowance will fall from £5k to £2k.
From 6th April 2018 the minimum employer contribution will rise from 1% to 2%.