What is new in Corporation Tax?

Here is a summary of some of the key changes to corporation tax. The changes will affect many of our clients operating as contractors or small businesses in the UK.

1.  Main rate of corporation tax:

• From 1 April 2013 — 23%
• From 1 April 2014 — 21%
• From 1 April 2015 — 20%

2.  Small profits rate of corporation tax — 20% (profits between £30,000 and £1.5 million).

3.  From 1 April 2015, companies with profits between £30,000 and £1.5 million will pay a single rate of corporation tax.

4.  ‘Above the line’ (ATL) of Research & Development (R&D) tax credits for large companies are 10%.

5.  Low emission vehicles:

• The 100% First Year Allowance (FYA) for electric and low emission vehicles will extend to 31 March 2018.
• The CO₂ emission threshold will be reduced from 95% to 75% from 1 April 2015.

6. Simplified cash accounting for unincorporated small businesses.

Belsize Accountancy Limited are specialist accountants for sole traders, contractors and limited companies. We can assist you in preparing your tax returns and tax computations and will tailor our advice to the needs of your business. Our services also include iXBRL filing and RTI and CIS submissions for small businesses.

Feel free to contact Belsize Accountancy Limited for more information on 0207 034 0052 by phone or via email at info@belsizeaccountancy.co.uk.