18.01.2008

Tax return deadline looms. Capital allowances changes finalised.

TAX RETURN DEADLINE LOOMS
Taxpayers need to ensure that their tax returns are completed and filed by 31 January. Final tax payments for 2006/07 are also due on that date, as is the first payment on account in respect of 2007/08 tax and self employed NIC. Those taxpayers who have not yet filed their returns can no longer have the tax they owe for 2006/07 coded out, and will now have to make a payment by the due date. If you still have work to do in collating data for your return, time is now running out!

CAPITAL ALLOWANCES CHANGES FINALISED
HMRC has published the draft legislation on the changes to the capital allowance regime that will commence in April 2008. These include the introduction of the new annual investment allowance, intended to benefit mainly smaller businesses, and the changes to the rates of writing down allowance on plant and machinery and long life fixtures. Next tax year will also see the start of the phasing out of industrial and agricultural buildings allowances. The draft legislation is pretty much as expected, and smaller businesses should seek advice before spending money on equipment over the next few months.