Possible changes that may come into law as soon as 1st of April 2019, are currently under consultation, some of these proposals include:

MTD penalties

  • A point system is being implemented, to encourage taxpayers to submit thier MTD reports on time.
    • Points will be given for each late report.
    • Once the amount breaches a certain point, (which will vary), a financial penalty will be charged for any further failures.
    • These points will expire after a set period of time, provided no more are earned.
    • HMRC will hold control over when these points will be given, in the case of software error.
    • The taxpayer will also be able to appeal these points and penalties via the digital account.
    • Current plans indicate that the aim is to spread this ‘point’ system to other duties and taxes.

Rent-a-room relief

  • A new condition is being added to the relief that requires the taxpayer must be present in the property for ‘all or part’ for the time the which the room is let.

Benefits in kind

  • Employees who charge their Electric or Hybrid car within or nearby their work environment will no longer be subject to a benefit in kind.
    • This will not apply if the employer reimburses the employee for the cost of charging elsewhere.
  • From the 6th of April 2017 use of assets will no longer apply to emergency vehicles.
    • the employees will not be taxed on the benefit of fuel used in the vehicle when ‘on call’.

Capital gains

  • Entrepreneurs’ relief
    • Additional equity funds are raised by the company on or after 6 April 2019, to allow the company founders to continue to qualify for the relief even if their shareholding has fallen below 5%.