Small firms warned of changes on tax

Mar 16 2010 by Karen Dent, The Journal

SMALL business owners are being advised to ensure they have their tax affairs in order before April 6 when a number of changes introduced in last year's Budget are due to come into effect.

There are alterations covering issues such as retained profits, share awards and schemes, and bonuses and salary which entrepreneurs may need to consider before the start of the new tax year.

Stephen Hall, tax partner and head of entrepreneurial business at Deloitte in Newcastle, said: “Although issues like the 50% top rate of income tax have garnered much attention, there are many aspects surrounding tax that are being potentially overlooked.

“With that in mind, entrepreneurs should take careful steps to review all aspects of their tax strategy to ensure they are fully aware of the changes and taking full advantage of any available reliefs.”

Smaller, unincorporated businesses should consider looking at the timing of deductions, including certain capital allowance claims, to see if the benefit of these can be deferred to a tax year where the 50% relief is available rather than 40%, he added.