YesTax, Positively Better
To talk about the coronavirus in a positive way, given the vulnerability of businesses, families, communities, travellers and anyone in between, might at first glance seem insensitive, but in a world of uncertainty it’s not always a bad thing to try and draw on, perhaps, some positive observations. There’s no doubt that life will look a little different in the coming months, with Government measures set to help protect and mitigate the spread of the virus, but here’s just a few changes we thought to share.
Financial incentives and measures
Whilst the coronavirus poses multiple challenges, and many are concerned about the longer-term effects on investment, cash flow and the future of their businesses; overall, the government appear to be announcing almost daily positive measures to provide support for public services, individuals and businesses, to ensure the impact of this wretched situation is minimised.
In our world, of tax incentives and reliefs, the Chancellor, in his recent budget, increased the R&D expenditure credit rate from 12% to 13% for large companies, and SMEs, who have either received funding for their R&D activities, or have been subcontracted to undertake them. A move to secure even more generous cash saving benefits for businesses.
Historically, capital allowances were available on commercial buildings in the form of the Industrial Buildings Allowances (IBAs); typically, on factories and older buildings, but this was phased out by 2011. In 2018, we saw the introduction of the Structures and Buildings Allowance (SBAs), whereby 2% of the structural building costs of a commercial property can be written down each year – effectively reintroducing the old IBAs system. Following the recent budget, it was announced that from 1st April 2020, this rate will increase to 3%, again providing additional tax relief to many property owners and another positive boost to the economy.
YesTax specialises in enabling businesses to secure valuable tax repayments, and cash credits from some of the most generous tax reliefs in the industry, such as; R&D Tax Relief, Patent Box Relief and Capital Allowances. We are already seeing increased interest in getting these claims done, and HMRC seem to be responding and processing repayment claims faster.
Through these unprecedented times, it’s worth recognising that we live in a ridiculously fast paced and demanding world, where most of us have little time to catch our breath. Because many of us experience a personal, professional, and monetary need to achieve, and constantly strive to achieve more, a work-life balance is difficult to say the least. Now, as society is asked to step back and take time out, all of sudden we experience ‘down time’. A time which may present opportunity, and an excuse to shake things up, and either improve today, or try something new tomorrow.
Similarly, it’s not necessarily a bad thing to break the routine. Right from our first years, when we start school and spend a set amount of time learning, we are nurtured into thinking that this is the way it has to be done. We are prepared for the workforce and working 9-5 (or more like 8-6 and beyond these days). As a family first business, we ditched the 9-5 mindset – after all, it’s not akin to the modern world. One of the biggest challenges we have today, with a family unit, is the disconnect. Usually, we don’t have the opportunity to spend enough quality time together, and work pressure often supresses the time we should have to enjoy. In navigating through this period together, maybe we will come to realise that we don’t have to have these set-in-stone times, and that flexible working makes for a happier commuter, and a more motivated workforce.
It's also good to know…
- The coronavirus pandemic began in China, and yesterday it reported no new local infections for the first time.
Apple has now reopened all of its 42 China stores.
- In South Korea, the number of cases is declining.
- Medical authorities, in China, have said a drug used in Japan to treat new strains of influenza appeared to be effective in coronavirus patients too.
- Doctors in India have been successful in treating coronavirus with a combination of drugs used, and they are going to suggest the same medicine, globally.
And finally, notwithstanding our deepest sympathies for our Italian neighbours, and their rising death toll, it has been reported, that, in Venice, where the canals are notoriously polluted with tourists and travellers their waters have become so clear that swans, fish and even dolphins have been seen. For some, it’s just a small sign of hope.
#together #unite #positivelybetter