July 2016 Blog through the eyes of John Robson CIMA Member in Practice

Wills and Family Trusts

If you have not taken the opportunity to speak with Mark Jordan of WATCH to make sure you and your loved ones are protected then I suggest you do so now. Their funding is coming to an end so the offer of a free consultation and subsidised fees will soon be ending. If you have not already done so, then contact Mark Jordan on 07747 777303 or contact the office and we will pass your details on.

R&D Claims

If you think your company has any possibility to make a claim under this scheme, then give me a call.

You could save thousands of pounds in Corporation tax if you have a valid claim and even get a tax refund in some circumstances. Contact me and I will talk you through it.

Nemaura Investment

If your company profits are likely to exceed £ 75,000, there is a way of mitigating corporation tax by

making an investment on behalf of your company in a medical research and development company.

The minimum investment is £10,000 and the investment must be made before your year-end. If you would like further details, then give me a call.

Brexit

If you have any concerns with regard to Brexit and how it may affect your business, then give me a call.

Brexit and its effect on Tax Legislation.

  Current position EEA Membership Out of EU completely
Direct Tax EU law takes precedence over UK law EEA law must be considered when interpreting UK law UK not subject to EU or EEA law
Recourse to EU Courts (ECJ / CJEU) Recourse to EFTA Court No recourse to EFTA / EU Courts
EU freedoms have influence on direct tax rules, including restrictions on state aid Similar rules apply No requirement to comply with EU freedoms

May be scope to widen SME tax incentives as state aid rules would not need to be considered

Interest and Royalties directive eliminates withholding tax on cross border payments. Directive would not apply

Withholding tax levels would depend on individual treaties (which may not get you to 0%)

Capital Duties Directive prevents member states from charging indirect tax on companies raising capital. Directive would not apply
Social Security Agreement means workers moving in the EU are only subject to social security in one country Same agreement applies UK may wish to sign up to agreement as other non-member states (e.g. Switzerland) have.
Indirect Tax Indirect taxes are harmonised and the UK is obliged to respect EU VAT legislation. UK would not be subject to EU VAT legislation.

Given the revenues involved the UK would be likely to retain its VAT system in some form.

There may be additional burdens for business operating in the EU.

Customs Duties Customs duty is an EU tax imposed by EU regulations. Customs duties would no longer apply:

·         Revenues would be lost.

·         Duties would be charged on the export of goods from the UK to the EU.

However, the UK would most likely enter into some form of agreement with the EU / EEA so there may be little change other than to compliance procedures.

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