PKF Fears Many UK Firms Are Unaware Of a Host Of New Tax Rules

by Robert Lee, Tax-News.com, London

04 April 2003

PKF, a leading tax and accountantcy firm has warned UK businesses to be conscious of a host of new tax rules and regulations that will come in as Gordon Brown prepares his 2003 budget speech.

Peter Penneycard, a tax director at PKF, suspects many employers across Britain are not even aware that important changes are very close at hand which could have serious implications for their costs.

The most visible change will be the imminent rise in NI (National Insurance) contributions that firms have to make. Many businesses are already saying they will have to cut jobs to accommodate the higher payments. Other important changes include the likely phasing out of 100% tax relief on IT expenditure and abolition of capital gains tax relief for owners selling their business.

A similar move to eliminate capital gains tax relief when businesses are handed down to children is also taking place on Sunday April 6.

“It’s important businesses find out how the changes will affect them and make certain decisions, whether it’s reviewing the IT spend or looking at increased employee costs due to NIC, before the deadlines. With some tax breaks, it’s a case of "use it or lose it", Penneycard explained to UK business advisory website Startups.co.uk.

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