Updates expected in 2018
The Self-Assessment filing deadline for the 2016/17 tax year is now behind us. The passing of the tax filing deadline not only offers a sense of relief but also signals that we are approaching a new tax year 6 April 2018. The tax climate is changing and there were many measures introduced in the Autumn Budget that will come into effect from 6 April onwards. The coming months offers a window of opportunity to implement tax planning measures to maximise the tax reliefs and allowances available in the current tax year as well as planning for the next tax year.
The way that we report our taxes is also changing. HMRC and the Office of Tax Simplification are working towards Making Tax Digital with private testing and pilots starting in Spring 2018. Businesses will not be required to use the new system before April 2019 but it is important to keep in mind that the tax system is becoming digitalised in a way that will affect how individuals and business maintain their records and we can expect to see changes coming in to effect from 6 April 2020.
The next significant event in the tax calendar is the first Spring Statement that will be announced on Tuesday 13 March 2018. It is intended that the Spring Statement will be a smaller financial event than the Autumn Budget that will focus on financial forecasts. With Brexit Day scheduled for 29 March 2019 it will be interesting to see how the impending divorce from the EU will overshadow the Chancellor’s projections.
Last year we saw a fundamental shift in the way that non-residents and non-domiciled individuals were taxed on their income. There is also a global trend towards tax transparency and a crackdown on aggressive tax planning. In 2018 we are likely to see many of these policies coming into effect so if you think you will be affected by any of the changes come in for a chat with one of our tax advisers.