Unlike the Summer Budget, the Autumn Statement 2015 added little that will be of relevance to small businesses:
Annual investment allowance
The allowance, which gives full tax relief to business investments in assets and equipment, will be reduced from £500,000 to £200,000 from 1 January 2016. The government have now confirmed that it will remain at this level until the next general election.
Capital gains on second properties
The due date for payment of capital gains tax on the sale of a second property is being brought forward. Currently, the due date for payment is 31 January after the end of the tax year in which the disposal took place. From April 2019, however, part or all of the tax will be payable within 30 days of the disposal.
Online filing
Most businesses, those who are self employed and landlords will be required to keep track of their tax affairs digitally and update HMRC at least quarterly via their digital tax account. These changes will not apply to individuals in employment, or pensioners (unless they have secondary incomes of more than £10,000 per year). It is not clear whether those affected will also be required to pay on a quarterly basis. The government has said it will publish its plans shortly and consult on the details in 2016. Taxpayers are to gain online access to their tax accounts by 2016/17 with the reporting obligations coming in by 2020.
Travel and subsistence expenses
As confirmed in the Summer Budget 2015, the government will legislate to restrict tax relief for travel and subsistence expenses for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. Following consultation, relief will be restricted for individuals working through personal service companies where the intermediaries legislation (IR35) applies. This change will take effect from 6 April 2016.
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