Short and Long Term Effects of Brexit

Short term effects

Those who were longing for the Making Tax Digital and Digital Tax Accounts consultation will need to wait as there are now urgent and more important matters in hand. In the case of any emergency budget, there could be an increase in income tax and national insurance.

Long term effects

The separation from the EU expected to start in late 2016 and will last until late 2018 or even longer.

The VAT could go up because it will be very easy to change for the government. Besides that the UK don’t have to be afraid of a referral to Court of Justice of the EU. Also the VAT will become more political without the restriction of EU rules. This could introduce a way more complexity system. According to the experts, there is no need for the government to stop the  VAT because it makes a huge amount of revenue.

All sales won’t be intra-EU movements any longer they will be imports and exports this means there will be a more extensive VAT system. So there might come a lot of changes but after all there probably be more tax in incentives introduced to encourage investment in the UK.

Is your business going to be affected by the recent result of the EU referendum? Read more by following the below link

http://www.accountingweb.co.uk/tax/business-tax/the-tax-implications-of-brexit

 

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