Motor Trade Tax Update Presented by Matthew Hodgson Michelle Malone

Summary  2013 Budget and VAT Update  Pensions Auto-Enrolment  National Minimum Wage Increase  HMRC Anti- Money Laundering Checks  General Anti-Abuse Rule (GAAR)

2013 Budget Update  Income tax  Personal allowance 2013/14 - £9,440 but £10,000 from 2014/15  Additional rate (income over £150,000) reduced from 50% to 45% (dividend rate reduced from 42.5% to 37.5%) from 2013/14  Corporation tax  Previously announced rate reduction for 2013 unchanged at 23% (2014 – 21%)  Marginal rates 2013 – 23.75% (2014 – 21.25%)  Headline measure reduction in main rate of corporation tax to 20% from April 2015

2013 Budget Update - Continued  Capital allowances  Annual investment allowance - £250k pa from January 2013 (2012 – various changes leading to apportionment but reduced from £100k to £25k in April 2012)  Low emission cars  Extension of 100% FYA to March 2018 but reduction in emissions threshold from April 2013 to March 2015 from 110 g/km to 95g/km then reduced to 75 g/km  Threshold main pool car reduced from 160 g/km to 130 g/km from April 2013 (also applies to lease rental restriction) – otherwise put in special rate pool

Approved Mileage Rates – Business Use of Company Vehicle – from 1 March 2013 Engine SizePetrolDieselLPG 1400cc or smaller15p13p10p 1401cc to 1600cc18p13p12p 1601cc to 2000cc18p15p12p Over 2000cc26p18p

VAT  New fuel scale charge rates applying from 1 May 2013  New forms  VAT 411 Sale of New Means of Transport  Declaration for zero rating sales of adapted vehicles  Purchase of vehicles from abroad – requirement to register vehicles from 15 April 2013 using NOVA (Notification of Vehicle Arrivals) online system

Automatic Pension Enrolment - Overview  Government concerned that people not saving for their retirement  New requirements - all employers to enrol their workers into a qualifying workplace scheme if they are not already in one  Qualifying scheme  Defined contribution scheme with a minimum contribution; or  Defined benefit or hybrid scheme which meets certain conditions

Automatic Pension Enrolment - Timescales  Commenced October 2012 but phasing in of duties over 6 years  Staging date dictated by number of employees in PAYE scheme  Can be found by inputting PAYE reference at  Other useful tools on The Pensions Regulator website

Automatic Pension Enrolment – Implications  Minimum total and employer contributions  Increase over time  No maximum  Employer can contribute more than the stated minimum

Automatic Pension Enrolment – Minimum Contributions Timing Minimum Total Percentage of Salary Minimum Employer Contribution October 2012 to September %1% October 2017 to September %2% October 2018 onwards 8%3%

National Minimum Wage AgeCurrent RateRate from 1 October and over£6.19£ to 20£4.98£5.03 Under 18£3.68£3.72 Apprentice£2.65£2.68

High Value Dealer Legislation – Anti-Money Laundering Rules  If prepared to take cash payments of 15,000 Euros or more in return for goods must register as High Value Dealer  HMRC now telephoning such businesses  To ensure their records are up to date  To obtain additional information e.g. type of goods sold  To check whether business understands their obligations – follow up visits?  You will be notified in writing before call is made

General Anti-Abuse Rule (GAAR)  The case for and against  Likelihood of success  The future of tax planning