1st April is an important date for UK companies as it signifies the start of a new tax year (yes, the personal tax year is different running to 5 April each year) and there have been some important announcements made in recent Budgets. Here are the headlines:
1. Small companies rate of corporation tax falls from 21% to 20%.
2. Standard rate of corporation tax falls from 28% to 26% (applies broadly to stand alone companies with taxable profits of £1.5m or more).
3. R&D tax credits increased from 75p enhancement for every qualifying £1 spent to £1 enhancement. If you haven’t considered whether R&D tax credits apply to your business it is well worth considering now.