March 9th, 2021 / Insight posted in Articles

Webinar recording: how will the Chancellor’s budget reforms affect you? Media

Last Friday (5th March 2021), Mike Hayes, Tax Partner at Moore Kingston Smith, hosted our 2021 Media Budget webinar. During the webinar, Mike discussed the key points and what this means for media businesses. We are delighted to share with you our top key takeaway points from the session:

Increase in the rate of corporation tax from 1 April 2023:

  • Accelerate income and corporate capital gains if possible so your company pays tax at 19%.
  • Re-visit the way directors/shareholders are paid going forward especially if your profits fall within the new marginal corporation tax rate of 26.5%.

Do you have trading losses?

  • Look to see if you can gain an earlier tax benefit by carrying them back for three years under the new temporary rules.

Planning expenditure on fixtures, fittings and equipment?

  • Review the timing of capital expenditure to see if advantage can be taken of the temporary increased allowances.

Receive or pay royalties or interest to companies within the EU

  • Review the obligations for withholding taxes and any relief afforded by the relevant double tax treaty.

Do you still need ‘Coronavirus’ support?

  • Consider extensions to Furlough Scheme and Self-Employed Income Support.
  • Consider the new Recovery Loan Scheme.

Anticipating a personal capital gain?

  • No increase in capital gains tax in this Budget, but a change bring it closer to income tax rates is expected, so consider accelerating those gains.

Have you prepared for the off-payroll working rules?

  • These come into effect from 6 April 2021, so this is now urgent.

If you would like further information or have any questions, please do get in contact with your normal Moore Kingston Smith contact or contact our media team.