April countdown for businesses

Whilst companies are busy putting their 2020 business plans into action, it’s worth checking whether you’ve considered some key legislation changes.

After 5 April 2020, the Off-Payroll Working Rules for the public sector are being extended to the private sector. This new rule could see the freelance status of thousands of workers being reassessed by their end clients under IR35 as to whether they are in ‘deemed employment’.

In addition, the Conservative manifesto proposed to increase the Employment Allowance for small businesses, which is worth £3,000 in National Insurance savings for employers currently, whilst the Research & Development (R&D) tax credit would increase to 13%. It also included a review on the definition of R&D, which could allow more expenditure to qualify.

Lastly, the planned reduction in Corporation Tax from 19% to 17% for next year has of course been shelved by Boris Johnson. The Conservatives pledged no increases to income tax, National Insurance contributions (NIC) and VAT under their ‘Triple Tax Lock’. However, given the significant spending pledges, we would expect to see an indirect change to at least one of these taxes to deliver the much-needed revenue to the Treasury.

To discuss the implications of any of these changes, please contact Jon Miles on 01225 325580 or email jm@richardsonswift.co.uk.