Discovery Machine®, Inc.’s Post

What should business owners be aware of with this tax season coming up? Here are just a few things. 📣 Keep Abreast of UK Tax Updates: Stay tuned for changes affecting VAT, corporation tax rates, and allowable expenses. 📣Capital Allowances: Maximize deductions for equipment, machinery, and vehicles purchases with updated rates. 📣Making Tax Digital (MTD): Prepare for digital VAT reporting requirements for businesses above the threshold. 📣National Insurance Changes: Stay informed on NI rate adjustments affecting both employers and employees. 📣Employee Benefits & Expenses: Know the rules on what can be provided tax-free to staff, from company cars to childcare. 📣Entrepreneurs' Relief: Review eligibility for reduced Capital Gains Tax on business sales or disposals. 📣R&D Tax Credits: Explore opportunities for claiming Research and Development relief for innovative projects. 📣Self-Assessment Deadlines: Don't miss filing and payment dates to avoid penalties and interest charges. Your Accountant is Your Guide! Stay compliant, minimize tax liabilities, and navigate UK tax landscape with confidence this tax season!

Sometimes, you need to dig deeper to understand the true impact. When the last budget introduced modifications to the new tax scheme, I initially dismissed it as just another headline-grabber with only limited people getting benefit of it. But during this return filing season, I was surprised to find many people better off with the new scheme, even with the usual exemptions and deductions. Clearly, the government did their Maths right. I hope the recent changes in capital gains tax for property will be just as beneficial. I’d be happy to be proven wrong again. #TaxPlanning #CapitalGains #PersonalFinance

Budget 2024: Key Direct Tax Updates The Union Budget 2024 brings several significant changes to direct taxes. Here are the highlights: 1. No change in tax slabs: Personal income tax slabs remain the same. 2. Higher standard deduction: Increased from ₹50,000 to ₹75,000 for salaried individuals. 3. Capital gains tax: New slab for long-term capital gains with a higher threshold. 4. Housing loan deduction: Interest deduction raised from ₹2 lakh to ₹3 lakh. 5. Startup incentives: Extended tax holiday for startups till March 2025 and more benefits for investors. 6. Simplified filing: Single-window system for income tax return filing introduced. 7. Digital payments: Additional tax incentives for adopting digital transactions. 8. Senior citizen relief: Higher tax deductions for medical expenses and pensions. These updates aim to simplify the tax process, encourage investment, and provide relief to taxpayers. Stay informed and plan accordingly! Consult your tax advisor for personalized advice.

Budget 2024: Finding the Silver Lining in Taxation “The only thing that makes taxes tolerable is the thought of what we get in return." As we dive into the latest Budget 2024 announcements, let's focus on the positives! Key Benefits: 1.Relief for middle-class taxpayers: A welcome respite for those who need it most. 2.Boost to start-ups and investments: A shot in the arm for innovation and growth. 3.Simplification of taxation norms: Because clarity is key to compliance. The Impact: 1.Increased disposable income for taxpayers: More money in your pocket means more freedom to spend and invest. 2.Potential impact on market dynamics: A long-term capital gains tax increase may bring new opportunities. 3.Relief for e-commerce businesses: Reduced TDS rates mean less hassle and more growth. Let's look beyond the tax burden and focus on the benefits that Budget 2024 brings! Share your thoughts and let's discuss! #Budget2024 #Taxation #Economy #Growth

The Spring Budget in a few days holds immense significance as it’s likely the final fiscal event before the general election Historically, pre-election tax cuts are common, but the Chancellor faces challenges balancing fiscal responsibility with voter appeal. While significant cuts are unlikely, smaller measures aimed at immediate impact, especially for SMEs, are probable Some speculations of what may be announced include: o Corporation tax rate - unlikely to see a significant cut o Full expensing, R&D & patent box - we may see some doubling down on full expensing o· Income tax and National Insurance - The Chancellor will not be able to resist cutting the main rate of either income tax or national insurance. I'd expect changes to NI as it chimes with previous messaging on incentivising work and may be better received by the OBR. o  Child benefit - Likely to increase from £50,000 to £60,000 o  Employee Ownership Trust Scheme - Changes to prevent being used for the wrong reasons o  Stamp duty land tax - A possible "green" SDLT measure could be announced What are you hoping to be announced? I know we all have a long list internally!! #springbudget #budget #chancellor #economy #predictions

#NFIB's Vice President of Federal Government Relations Jeff Brabant joined Scripps News Live to discuss the issues small business owners are most concerned with before the upcoming election: “The things that small business owners care about most right now are inflation and access to qualified labor. So, they want to hear more about how these candidates are going to realistically address inflation…We’re also looking at a massive tax hike on small business owners that’s due to kick in at the end of 2025…If that does happen, we’re looking at 30 million small businesses looking at a tax increase. The Small Business Deduction will expire if Congress fails to act.” Learn more: https://lnkd.in/eCTytSX6 More about the tax hike: https://lnkd.in/ef-CzfwS

This makes complete sense: -------------------- The government, when they announced the budget, should have made the change to the capital gains inclusion rate immediately,” he said. “Why have they waited until the end of June before the implementation? The reason is, and they actually say it if you read the fine print in the budget, to encourage people to realize capital gains now before the implementation on (June 25), at the lower rate.” Wiseman said that by doing this, the federal government is essentially bringing forward government tax revenue from future years. “This to me is the Ponzi scheme that is being put in place with this capital gains tax,” he said. “In other words, what the government is doing is stealing tax revenue from future governments in order to bring it in to the fiscal 2025 year.” https://lnkd.in/g8ZVbwwF

Yesterday, Chancellor Jeremy Hunt presented his Spring Statement to Parliament: https://lnkd.in/ecYEWGNH, announcing that the government was ‘sticking to the plan’ and therefore able to make further #taxcuts for working people and to boost #growth. Here are the key headlines: 🔸 Further reductions in National Insurance contributions will be made from 6 April 2024. Class 1 will reduce to 8% and Class 4 to 6%. 🔸 The remittance basis of taxation for non-UK domiciled individuals will be abolished. 🔸 The Furnished Holiday Letting tax regime will be abolished. 🔸 The higher rate of Capital Gains Tax for residential property disposals will be cut from 28% to 24%. 🔸 Multiple Dwellings Relief will be abolished from 1 June 2024. 🔸 The threshold for the High Income Child Benefit Charge will be increased to £60,000 from 6 April 2024 and the rate at which it is charged will be halved. 🔸 The VAT registration threshold will be increased from £85,000 to £90,000 from 1 April 2024. 🔸 Additional support and reliefs will be given to the creative industries sector. For an overview of the Spring Statement announcements, click the link above. #TeamHentons #Tax #Budget #Budget2024

Mark your calendars! Chancellor Rachel Reeves has set the next budget for 30 October 2024, with big changes proposed to patch a £22 billion gap in public finances. Here’s what’s on the horizon: 🏫 From 2025, private schooling, including vocational training and boarding, will be subject to a 20% VAT. Say goodbye to business rates relief for private schools too! 🏖️ The Furnished Holiday Let tax benefits are checking out in April 2025. Plan accordingly if you're in this sector. 💼 Big shifts for non-domiciled taxpayers too, with a complete overhaul scheduled for April 2025. 💰 Investment managers, watch out! The tax treatment on carried interests is changing—no more capital gains perks if it looks more like income. 🌍 Multinationals face tighter rules to stop tax avoidance with new anti-arbitrage measures already in effect. ⚡ The Energy Profits Levy is also getting a bump up from 35% to 38%. 👥 Plus, HMRC is gearing up with a recruitment drive aiming to add 5,000 new staff to close the tax gap. And that's not all—rumours swirl around potential tweaks to small business taxation, IR35, Inheritance Tax, and Capital Gains Tax rates. 🤔 Curious about how these changes might affect you or your business? Drop us a message, and let’s get your finances ready for the changes ahead! https://buff.ly/4cgs6iJ #UKBudget2024 #Finance #TaxReform #BusinessNews #HemisphereAccounting #UKTaxAgents

In this week’s Enews, we look at analysis of a potential increase to Capital Gains Tax at the Autumn Budget. There is also news on the government’s Make Work Pay legislation and the latest guidance for employers from HMRC to update you on. https://lnkd.in/enzkGieF