Small Business Tax News, W/C 27 01 20

Small Business Tax News, W/C 27 01 20

– So welcome to the first
in a new series of videos, where we talk to you weekly
about any news that’s affecting you, the small
business owner, from a business tax point of view. (upbeat music) Hello everyone, it’s the middle of January and it’s time to talk
to you about the biggest changes that have happened
in the news this week in terms of business tax. For us accountants,
it’s quite nice to just spend five minutes away from the desk. It’s our busiest times
of the year with the Self Assessment deadline coming up. So I’m pleased to be talking to you instead of doing that. So, the first bit of news this week that’s affecting small business owners, is the fact that they’ve announced that with the budget coming up
on the 11th March this year. Which, us as tax people
get super excited about. We have some news and some
rumors that they might be doing away with entrepreneur’s relief. Which is something that we use quite a lot in the tax game to help
reduce people’s tax bills a lot of the time when
they exit a business. But often it can be that they’re just closing something down. It really helps get the
money that’s left out there at the tax rate of 10%. Now, there are some concerns
that this being abused by some of the super rich, as they’re known. And as a result we don’t know what those changes are gonna be, but it’s rumored to be out there. So if you’re looking to
do any deals and wrap up any businesses, I think to be sure, we’ve already seen some
changes that are occurring to entrepreneur’s relief anyway. It’s worth trying to get
those deals done before April. So that’s something we’re
not really sure of yet and it’s a rumor but, hey, we wanna be on top of those. Interestingly, the other news this week is that we’ve had a list of publications from HMRC with their top 10 prosecutions their claim to fame I guess, with all the cool headline
figures that they’ve saved and cracked down on
tax evasion, avoidance. And in this particular case, they managed to get 14 and
a half years given to two directors of a set of
companies that fraudulently scammed investors out of 60 million pound. And this was all to do with
a HIV research and cure facility they were setting up. It wasn’t really an investment, and they didn’t really spend any of the money on anything qualifying. So as a result, they got a jail sentence. So that’s the sort of fun
tax bit of news for the week. And the other thing I wanna talk about, is the fact that as it is January, and I mentioned at the front of the video we are very very very busy. With about five days to go at the date of recording this to the end
of the tax return deadline. There’s still three
million tax returns to do. That’s 17% of the amount of
tax returns they’re expecting that still haven’t been done. So it just goes to show you that we joke a lot in the accounting
profession about people leaving it to the last minute, and there have been clients for years still chasing them for those
last bits of paperwork. Which is why we’re all so busy. But they’re not alone. 17%, that’s quite a lot, isn’t it? Now if you don’t know, the
reasons why it would be a good idea to do your tax return early, is that the tax that is
due on that return is also due on the same deadline. So if you’ve waited to the last minute and then suddenly get a big surprise bill, you might not be able to pay it. I did a video recently on
what you can do about that. But generally, you know,
you wanna make sure you get it done in a good enough time. So just bear that in
mind when you come round to doing it and don’t leave
it to the last minute. I know HMRC sites have
already been falling over this week with a couple
of bits and pieces, so just make sure that’ all
covered off in good time. So that’s it really. Three really quick bits of news, so if you’re thinking of
your entrepreneur’s relief, just be careful, be mindful
that that might be changing if you looking at your
way out of your business. And make sure that you’ve
done your tax return well in enough time. And of course, don’t scam
people out of 60 million pounds. We’ll see you in the next one.

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