Included in this month’s article:
- Deadline approaches for SME Brexit support grant
- Employers told to issue childcare voucher reminder
- Directors bank mandatory climate credential disclosure plan
- HMRC seeks to remove VAT repayment Supplement
Included in this month’s article:
We have just past the anniversary of when Bounce back loans started dropping into everyone bank accounts.
You will have received notifications from your bank over the last few months saying that you will be able to make changes to the loan to assist with cashflow.
(more…) Read MoreTraditionally, most people get nowhere near breaching the
pensions lifetime allowance, but that’s likely to change
over the next five years.
The lifetime pensions allowance is currently £1,073,100.
(more…) Read MoreOwning and letting out a holiday home, otherwise known as a furnished holiday let (FHL), has always been a popular way of investing and earning income.
Not only do FHLs enjoy many tax advantages over normal residential let properties, owners have an asset which they can use for holidays while it largely pays for itself.
(more…) Read MoreIncluded in this month’s article:
There are some changes to the way VAT operates within areas of the building and construction sector from 1st March 2021. These changes apply to businesses supplying other businesses with construction services…
(more…) Read MoreTax Card 2021/22
(more…) Read MoreFor the past 40 years or so, corporate tax rates have decreased steadily around the world. In 1980, the global average stood at around 40%, but by the end of 2020 it was closer to 24% as various countries aimed to encourage business investment.
(more…) Read MoreIf there’s one thing to take away from Spring Budget 2021, it’s taking charge of your personal finances is going to be increasingly important over the next five years.
(more…) Read MoreIncluded in this month’s article:
“It’s going to take this country a long time to recover from this extraordinary economic situation, but we will recover.”
Chancellor Rishi Sunak
Included in this month’s artice:
Exactly a year later than planned, changes to the off-payroll rules – known as IR35 – will take effect in the private sector next month. The emergence of COVID-19 put paid to the changes affecting large and medium-sized private-sector organisations this time last year, but now it’s for real.
(more…) Read MoreOur state pension, benefits, health service and more are all funded by National Insurance contributions (NICs).
These are paid in different ways and at different rates by employers, employees and the self-employed, and they can also be paid voluntarily.
(more…) Read MoreIf you have a defined contribution pension scheme – whether private or through your employer – your retirement savings have probably been hit quite hard by the COVID-19 pandemic over the past 12 months.
(more…) Read MoreIt’s not often that HMRC makes exceptions to its tax deadlines or late-filing penalties, but the past year has, as in so many ways, been different.
Between optional deadline deferrals, new payment schemes and temporary reliefs, keeping on top of the changes to the usual tax timetable hasn’t been easy.
(more…) Read MoreIncluded in this months article:
My client has had a computation from HMRC for the CIS (Construction Industry Scheme) deductions they failed to deduct from payments made to a subcontractor for the current and last 6 tax years.
What about the tax paid by the subcontractor on this income via Self Assessment/Corporation Tax? Can this be taken into account?
With the ever-changing circumstances of 2020/21 it is hard to imagine that we are already close to the tax year end again.
Feels like we did nothing and went nowhere in the last 12 months!
(more…) Read MoreI am selling a Furnished Holiday Letting and understand I can rollover the gain into another qualifying letting property. However, I am not anticipating buying a new property for a year or so. In the meantime do I still have to make a return under the 30 day reporting scheme and pay the capital gains tax?
(more…) Read MoreA number of exporters have faced problems with sending their goods to the EU. Many lorries have been turned back at the border by Border Force and over 150 have incurred fines in Kent for the failure to have complete paperwork. Here we identify the issues that are most frequently found and explain how to get it right first time.
(more…) Read MoreIncluded in this month’s article:
The UK has left the EU, and for British exporters, that presents both opportunity and uncertainty.
While the new trade agreement places no tariffs or quotas on goods traded between the UK and EU from 1 January 2021, it may come with additional costs and bureaucracy as the UK is no longer part of the single market and customs union.
Those working in the UK’s construction industry will have to handle and pay VAT differently from 1 March 2021, unless there’s another last-minute Government U-turn.
(more…) Read MoreI have a number of clients based in Northern Ireland (NI) who both supply goods to and buy from mainland UK and the Republic of Ireland (ROI) mainly on a wholesale basis. Please could you clarify the rules post-Brexit.
(more…) Read MoreMy client has been in dispute regarding a road traffic accident between one of his company’s lorries, and another VAT registered business’ lorry. A small claims court has judged in favour of the third-party business, and has awarded them payment for damages, including reimbursement of their legal costs. The third-party is a partially exempt business, and so they would like reimbursement for the net amount of their costs, plus the VAT – will the third party raise a VAT invoice to us for payment of those costs and can my client claim back any of the VAT?
(more…) Read MoreEarlier this year, a new rule requiring capital gains tax on UK residential property to be reported and paid to HMRC within 30 days kicked in.
This ushered in another change to tax rules affecting residential property owners, which seeks to raise more tax from the disposal of additional homes and to collect this tax quicker.
(more…) Read MoreDuring what would normally be the busiest period of the year for businesses in retail, hospitality and other sectors, many will now be keeping a close eye on their cashflow as they deal with the impacts of COVID-19.
(more…) Read MoreINCLUDED IN THIS MONTH’S ARTICLE:
We have attached a commentary on the 3rd SEISS claim to help you decide if you should claim. We hope this helps. The claim window opens Monday.
Council Grants
The Council arbitrary grants opened last week – York’s can be found at
Application Form: https://www.york.gov.uk/xfp/form/263
Information: https://www.york.gov.uk/COVID19BusinessGrants https://www.york.gov.uk/AdditionalRestrictionsGrant
Bounce Back Loan Scheme (BBLS)
A reminder that the BBLS closes on 31 January 2021, so if you are eligible and have not yet applied, or have scope to extend your original loan, please take urgent action.
Deferral of tax and payment by instalments
Many people deferred the second instalment of 2019/20 tax which was originally due on 31 July 2020 with deferral to 31 January 2021. HMRC have now announced that you can further delay payment by arranging instalments for any self-assessment tax falling due on 31 January 2021.
If your tax debt is below £30,000 and you have no existing Time To Pay arrangements in place you can apply online using your Government Gateway login. For debts over £30,000 or if you have existing payment arrangements you have to call HMRC on 0300 200 0822 to request instalment payments.
Just worth mentioning that we are seeing quite a few clients having difficulties obtaining mortgages with outstanding tax liabilities so maybe speak to your adviser if you are thinking of re-mortgaging / using time to pay.
Read MoreHad everything gone to plan this year, the Chancellor would have been delivering his Autumn Budget speech. Instead, Rishi Sunak declared an “economic emergency” alongside a slimmed down spending plan to see him through until spring.
(more…) Read MoreA client wants to know if the same rules on furlough fraud apply to the extended Job Retention Scheme. If so, are the penalties the same? Also, how can they avoid it?
Read more Read MoreI have a number of clients supplying various kinds of digital /electronically supplied services to businesses and consumers in the EU. Their activities include the supply of downloadable software and Apps, and access to information, photo or videos held online. They currently use the VAT Mini One Stop Shop (VAT MOSS) via their UK VAT registration, to account for VAT on the sales to EU Consumers. How is this going to change after we leave the EU on 1st January 2021?
(more…) Read MoreINCLUDED IN THIS MONTH’S ARTICLE:
– GROUP SLAMS LATEST TAXABLE GRANTS FOR THE SELF-EMPLOYED
– IMPROVED JOB SUPPORT SCHEME OPENS FOR EMPLOYERS
– SUNAK HINTS AT SPRING TAX HIKES TO ‘BALANCE THE BOOKS’
– THREE IN FIVE BOUNCE-BACK LOANS MAY NEVER BE REPAID, WATCHDOG CLAIMS
Last March, one of the headline-grabbing measures announced in what will be the only Budget speech of 2020 surrounded what we knew as entrepreneurs’ relief.
The relief was designed to be an incentive for entrepreneurs to start a new business by reducing the amount of capital gains tax payable when the time came to dispose of (or sell) certain business assets, where conditions are met.
With property being one of the most reliable investments around in a period of historic low-interest, many money-savvy people these days end up owning additional properties.
They might rent them out, live in them or simply sit on them to sell on when the time is right.
If you are considering moving home in the second half of 2020/21, you are by no means alone.
In the month leading up to 8 August 2020, 149,000 properties were put on the market – the highest number since before the financial crash in 2008.
Historically, landlords have enjoyed generous income and capital gains tax reliefs which helped make residential property an attractive investment for those looking to add to their monthly incomes or provide for retirement. But over the years the Treasury has eroded these reliefs, both income and capital.
(more…) Read MoreIncluded in this month’s article:
Companies House will be reformed to clamp down on fraud and money laundering, with directors unable to be appointed until their identity has been verified.
(more…) Read MoreThe determination of an individual’s employment status is not always straightforward and there is no single definition. Employment tribunals and HMRC may consider different factors in deciding the issue. This topic explores the distinctions in statute and common law between an employee (who works under a contract of employment), a worker and an independent contractor. This topic examines each of these in turn, including the tests established by common law to determine employment status. It also considers the atypical types of contract that have grown in popularity in recent years, notably part-time and fixed-term contracts, zero-hours contracts, zero-hours contracts, apprentices and individuals employed by employment agencies.
(more…) Read MoreAccording to reports, the number of fraudulent claims has continued to increase in recent weeks as exploitation of the Coronavirus Job Retention Scheme (the furlough scheme) becomes a new Government threat. HMRC has announced the penalties that can be imposed on the employers who commit furlough fraud. Opeyemi Ogundeji, researcher and employment law writer at Croner-i, explores this in more detail below.
(more…) Read MoreWhile many have decided that remote working is the future, a number of organisations are finding the disadvantages increasingly apparent. Jon Herbert investigates whether these drawbacks are simply the result of bad practice.
(more…) Read MoreMy client’s limited company owns various holiday cottages and they are applying the temporary reduced rate to this income from 15th July 2020 to 12th January 2021. They also own several narrow boats, camper vans and motorhomes which have become very popular this year with more families wanting to holiday in the UK in their own personal space. They have read various articles online and they are a little confused as to whether the reduced rate can be applied to the rental income received from narrow boats, camper vans and motorhomes?
(more…) Read MoreINCLUDED IN THIS MONTH’S ARTICLE:
With everything that’s happened so far this year, it might be easy to forget your obligations to file a tax return for 2019/20 by midnight on 31 January 2021.
The coronavirus pandemic and subsequent economic crisis has caused chaos with businesses up and down the country, most of which closed entirely during April 2020.
Whether you’re making exit plans or you want to give confidence to investors, knowing the value of your business is a vital step. From the inside, it might be hard to say what that value is. You’ve put long hours of hard work into building your business from the ground up, but what does that mean to a buyer or investor in monetary terms?
(more…) Read MoreHMRC have published company car advisory fuel rates for use from 1 September 2020.
(more…) Read MoreMy client operates a luxury hotel in the UK. They have recently reopened and will now recommence selling face value gift vouchers. The holder can redeem their vouchers against room reservations, dining at the restaurant/bar and when using the leisure and spa facilities. The restaurant does not offer a takeaway service. Historically the client has always charged VAT at the standard rate on all their supplies. Could you please clarify the impact of the temporary rate change on the issue of face value vouchers. When will the VAT be due and at which rate?
(more…) Read MoreSeveral years ago I separated from my wife but the divorce has now gone through. I still own half of the marital home but I have been living in rented accommodation since the separation. Can I claim that my old marital home is still my main residence for capital gains tax purposes when it is sold?
I intend to remarry and my girlfriend wants to give me a share of her current home after we are married. Apparently this was let for a time before my girlfriend made it her home. Would there be any capital gains tax advantage in doing this?
(more…) Read More