2016 Challenges for SMEs
Big changes The summer 2015 budget introduced the biggest changes in SME taxation for over 20 years. In summary, there will be a significant increase in most business owners’ tax bills. This brief note is to outline what those changes are, and what the likely impact will be. And of course, because we are who we are, there are some suggestions on how you could mitigate some of the increases. But first some accounting news…. Accounting changes New accounting rules mean change in the way some assets and liabilities are measured, and how changes in valuations have to be accounted for. This could mean that reported profits are much lower in future, even with the same underlying performance. FRS102 took effect from 1 January 2015, but only applied to SMEs after the FRSSE was withdrawn in July 2015. FRS102 applied to SME accounts from 1 January 2016, but you…