Making Tax Digital (MTD). The government has confirmed that filing and record keeping penalties will not be charged during the first year of MTD for VAT where businesses are doing their best to comply. The government will not be mandating MTD for any new taxes or businesses during 2020. The pilot scheme for income tax will continue, but will not become mandatory until at least 2021.

Apprenticeship levy. From April 2019 the co-investment rate will decrease to 5%, and the amount employers can transfer to their supply chains will increase to 25%.

As expected, draft legislation, calls for evidence and new tax consultations have been announced. A brief summary of the highlights is provided below:

Structures and buildings allowance. Draft legislation published which introduces a new allowance for investments in non-residential structures and buildings to create a more competitive tax regime for businesses.

NI employment allowance. The government will issue draft regulations to restrict the allowance to businesses with an employers’ NI contributions bill below £100,000.

R&D tax relief. A consultation on preventing abuse of the relief for small or medium-sized enterprises.

Enterprise investment scheme. The government plans to publish draft guidelines outlining HMRC’s proposed policy and practice for approving funds.

Insurance premium tax. A call for evidence on suggestions to ensure that insurance premium tax operates fairly and efficiently.

Capital gains tax private residence relief. A consultation on the changes to lettings relief and the final period exemption announced at Budget 2018.

The full Spring Statement and links to the documents can be found here

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