Overall, for most companies it will be business as usual following the Budget today, but with a clear message that doing business in the UK means playing ball strictly within the rules and paying the right amount of tax. The headline corporation tax rate is still on course to reduce to 17 per cent by 2020. The announcements today continue to focus on ensuring large companies comply with tax legislation, with a review of the way HMRC risk assesses large businesses being conducted. The focus on this review will be on ensuring that large companies meet their compliance obligations.
It is not always easy for companies to comply with the ever changing compliance environment. The expected restrictions to interest relief are still due to come in on 1 April, although there were still more changes announced in the budget to these already complex rules, just 17 working days before implementation. There were also some changes to tackle perceived tax avoidance and we can be sure that this will continue to be on the government’s agenda.