The Business Tax Bill also contains a suite of real simplification measures and convenient administrative practices. These measures include:
- Removal of incremental monthly late payment penalties which, when imposed on top of UOMI, gave an effective penal rate which equates to 27% per annum;
- Tidying various aspects of RWT on dividends including allowing a company to opt out of the 5% RWT on a fully imputed intercompany dividend; tidying up the RWT calculation for cash and non-cash dividends; and allowing certain dividends to be backdated if fully imputed;
- Flexible provisions for setting withholding taxes for contractors and labour hire firms with a minimum withholding tax of 10% for resident contractors (15% for non-residents) and a default rate of 45%;
- A shareholder employee can choose to remit tax by way of a mix of PAYE, provisional tax or both. This will allow PAYE to be accounted for during the year and then provisional tax to deal with a year-end bonus once the financial results are known;
- Simplified rules for calculating costs for reimbursing the business use of motor vehicles including a modified fixed amount per km of business travel;
- A set square metre rate for calculating home office costs, excluding rent rates and interest which can vary too greatly depending on the nature of the property and the taxpayer’s circumstances;
- Removing the annual renewal of RWT exemption certificates;
- Allowing more companies to file FBT returns annually rather than quarterly;
- Modifying the 63 day rule on employee remuneration costs;
- Increasing the threshold for taxpayers to correct errors in returns from $500 to $1000 from 1 April 2017.
Whisky Match – Oban 14 Year Old
The Oban distillery is one of the oldest distillery in Scotland founded in 1794. Situated in a small port town on the Western Highlands of Scotland the town was built up around the distillery. Made with tiny stills the malt is full and rich, with sea salt and smokiness on the nose. Great flavours of fig, spice and fruit fighting for attention. A superb all round dram just like the suite of tax reforms offering real tax simplification.