No Christmas tax break for small business owners

Small businesses have no time for a break this Christmas due to the ‘raft of changing tax legislation’, claims PKF Accountants.

PKF tax partner Peter Penneycard said that 2008 would probably be one of the most demanding years small companies have faced in a long time, citing the lack of clarity over the capital gains tax reform as an overriding factor.

“There are a number of areas where new rules are being introduced around the end of the tax year and it's important that business owners get to grips with them or they could lose out,” he said.

“The Christmas break is a good time to get everything in order, particularly if the business is taking an extended break over the whole week.”

"Much has been said recently about CGT but there are other areas that need to be checked and claims to consider. Missing tax reliefs for research and development costs, capital investment and pension contributions could significantly damage an entrepreneur's finances.”

Penneycard said some important areas for small business owners to focus on were capital gains and inheritance tax reliefs, new capital allowance rules for asset purchases, the VAT penalty regime for errors and research and development claims.

© Crimson Business Ltd. 2007