Super-Deduction Extension will Benefit UK Property Landlords

1. Benefit for Property Landlords, Export Support Scheme and Marriage Allowance UK must improve export support scheme for SMEs Key Points The FSB says there is an opportunity to seize a better export support scheme Plan includes increasing proportion of costs covered by grants to ensure best value for money The Federation of Small Businesses (FSB) has laid out a five-point plan to help the government create a better export support scheme for small businesses. The FSB is calling on the government to make vital improvements to the UK’s export support scheme. It comes amid the recent closure of the government’s Tradeshow Access Programme (TAP) which the FSB argues was not “as good, or as good value, as it could have been”. The scheme provided £500-£2,500 towards direct exhibiting costs, conference fees or creating promotional materials. https://morganreach.com/

2. Now the FSB says there is an opportunity to seize a better export support scheme. The body has set out a five-point plan to help achieve this, particularly for regions and businesses where support is most likely to help them become first-time exporters or move into new markets. Help trade show access across the UK, particularly in areas like the north east and north west of England and the west midlands – these areas have the largest proportion of small firms considering exporting for the first time compared to those who already do. Expand support to costs such as conference entrance fees Increase proportion of costs covered by grants to ensure best value for money by increasing the additionality of the scheme Streamline administration of support so that more small firms find it easier to access and reducing the risk that only the larger SMEs will have the resources to access trade programmes Look beyond trade shows to make UK export more competitive with other international schemes FSB national chair, Mike Cherry, said: “If our international competitors have better schemes than us, it is only right to look afresh at what more can be done to put ‘Made in the UK’ on other nation’s shelves. “Ministers now have a chance to make the UK’s export support truly world class in a tough global race –we encourage them to take it.” Taxpayers urged to check eligibility for the marriage allowance Key Points Figures show around 1.8 million married couples are currently making use of the benefit. They can transfer 10% of their tax-free allowance to their partner, which is £1,260 in the 2021 to 2022 tax year HMRC has reminded married couples and those in civil partnerships that they could reduce their income tax liability by up to £252 a year by sharing their personal allowances. https://morganreach.com/

3. Marriage Allowance allows married couples or those in civil partnerships to share their personal tax allowances if one partner earns an income under their Personal Allowance threshold of £12,570 and the other is a basic rate taxpayer. The personal allowance is the amount of income you don’t have to pay tax on so by transferring some of your allowance to your partner, they are able to earn more income tax-free. They can transfer 10% of their tax-free allowance to their partner, which is £1,260 in the 2021 to 2022 tax year. It means couples can reduce the tax they pay by up to £252 a year. Couples can backdate their claims for any of the four previous tax years, which could be worth up to a total of £1,220. If you’ve recently taken unpaid leave, changed employment due to Covid 19, or reduced your hours, you could now be eligible to claim the allowance. You may also be entitled to it if you or your partner recently retired. It is free to apply for the marriage allowance and you can check eligibility and make a claim here. Married couples may have experienced a change in their circumstances which could now mean they are eligible for Marriage Allowance, including: •A recent marriage or civil partnership •One partner has retired and the other remains working •A change in employment due to COVID-19 •A reduction in working hours which means their earnings fall below their Personal Allowance •Unpaid leave or a career break, or •One partner is studying or in education and not earning above their Personal Allowance If a spouse or civil partner has died since April 5, 2017, the surviving person can still claim by contacting the Income Tax helpline. Marriage Allowance claims are automatically renewed every year. However, couples should notify HMRC if their circumstances change. Super-deduction extension will benefit property landlords Key Points https://morganreach.com/

4. A property landlord incurring £1m of qualifying expenditure can save almost a quarter of a million pounds Expenditure needs to be incurred on or after April 1, 2021 but before April 1, 2023 First announced in March 2021 and set to run from April 1st 2021 for two years, the super-deduction allows any investments a business makes in ‘main rate plant and machinery’ to qualify for a 130% capital allowance deduction. When the scheme was originally announced, property letting companies were excluded from the scheme, meaning only occupiers could claim. The super-deduction would be available for expenditure on new plant and machinery which would otherwise qualify for the 18% main rate of capital allowances. A special rate first year allowance at 50% (the SR allowance) was also made available for expenditure that would otherwise have qualified for the special rate writing down allowance, such as integral features or long life assets. However, the Government recently approved amendments at the report stage of the 2021 Finance Bill meaning that property landlords will now be able to take advantage of the 130% super-deduction for main pool assets and maintain their annual investment allowance (AIA) for special rate assets. Under the new rules, a property landlord incurring £1m of qualifying expenditure can save almost a quarter of a million pounds on their corporate tax bill. Get In Touch At Morgan Reach, we understand every business needs a little help now and again-especially when it comes to the financial side of things. Therefore, to help our clients and visitors we endeavour to cover as much of the business news as possible. If you are self-employed or run a business and need assistance and advice on how these news could make a difference to you or your business, feel free to get in touch with the experts at Morgan Reach. https://morganreach.com/