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Temporary AIA limit extended until 31 December 2021

Temporary AIA limit extended until 31 December 2021 The Annual Investment Allowance (AIA) enables a business which incurs qualifying expenditure to claim an immediate deduction when computing taxable profits. The deduction is capped at the amount of the AIA limit for...

HMRC consult on Making Tax Digital for corporation tax

HMRC consult on Making Tax Digital for corporation tax Earlier this year, the Government published a timetable for taking the Making Tax Digital (MTD) programme forward. As part of that programme, MTD will be extended to corporation tax. Although, this will not be...

Customs declarations from 1 January 2021

Customs declarations from 1 January 2021 The Brexit transitional period comes to an end on 31 December 2020. From January 2021, new arrangements apply if you send goods abroad from the UK or bring goods into the UK. It is important that you check what customs...

File your tax return by 30 December 2020

File your tax return by 30 December 2020 Although the deadline by which your 2019/20 self-assessment tax return must be filed online is 31 January 2021, an earlier deadline of 30 December 2020 applies if you want any tax that you owe for 2019/20 to be collected...

SEISS grant increased

SEISS grant increased The Self-Employment Income Support Scheme (SEIS) will now run until 30 April 2021, providing two further grants – one for the three months from 1 November 2020 to 31 January 2021 and one for the three months from 1 February 2021 to 30 April...

CJRS extended until March 2021

CJRS extended until March 2021 The Coronavirus Job Retention Scheme (CJRS) was due to come to an end on 31 October 2020, being replaced from 1 November 2020 with a new scheme – the Job Support Scheme. However, the second national lockdown in England changed all...

Postponed VAT accounting

Postponed VAT accounting Postponed VAT accounting is being introduced from 1 January 2021. This will affect you if you are VAT-registered and you import goods into the UK, particularly if you are a smaller business and you do not currently use the Duty Deferment...

Job Support Scheme

Job Support Scheme The Job Support Scheme replaces the Coronavirus Job Retention Scheme from 1 November 2020. The scheme, which has already evolved since it was originally announced to provide a greater level of support, will run for six months until 30 April 2021....

More time to pay your tax bills

More time to pay your tax bills In his Winter Economy Plan, the Chancellor, Rishi Sunak, unveiled measures which will allow self-assessment taxpayers and VAT-registered businesses more time to pay back deferred tax. New Payment Plan for VAT At the start of the...

Further extension to the SEISS

Further extension to the SEISS To help self-employed individuals who continue to be affected by the COVID-19 pandemic, the Self-Employment Income Support Scheme (SEISS) has been extended for a further six months, from November 2020 to April 2021. Grants payable under...

Deadline for applying for COVID-19 finance extended

Deadline for applying for COVID-19 finance extended The Government launched four temporary Government-backed schemes to provide finance to businesses struggling as a result of the COVID-19 pandemic: the Bounce Back Loan Scheme (BBLS); the Coronavirus Business...

PAYE Settlement Agreement reminder

PAYE Settlement Agreement reminder If you have a PAYE Settlement Agreement (PSA) in place for 2019/20, you will need to pay the tax and National Insurance due under the agreement by 22 October 2020, assuming payment is made electronically. If you pay by cheque, the...

Annual investment allowance

Annual investment allowance The annual investment allowance (AIA) was temporarily increased from £200,000 to £1 million for two years, from 1 January 2019 to 31 December 2020. The allowance reverts back to its usual level of £200,000 from 1 January...

Off-payroll working back on the horizon

Off-payroll working back on the horizon The extension to the off-payroll working rules was put on hold as a result of the COVID-19 pandemic. However, the legislation has now been implemented and the new rules will come into effect from April 2021 – one year...

Benefit-in-kind charge on electric vans

Benefit-in-kind charge on electric vans A tax charge arises under the benefit-in-kind rules where an employee enjoys unrestricted private use of a company van. The taxable amount is a set amount, with a reduced charge applying to electric vans. However, the charge for...

Statutory redundancy pay and furloughed employees

Statutory redundancy pay and furloughed employees The Coronavirus Job Retention Scheme (CJRS) comes to an end on 31 October 2020. As the scheme winds down and employers start meeting some of the associated costs, they will face difficult decisions as to whether they...

Correcting claims under the CJRS

Correcting claims under the CJRS HMRC have moved into the next phase of their compliance activity in relation to the Coronavirus Job Retention Scheme (CJRS) and have written to 3,000 employers who they believe may have either claimed more under the scheme than they...

Final SEISS grant

Final SEISS grant The Self Employment Income Support Scheme (SEISS) provides grants to self-employed taxpayers whose business has been adversely affected by the Coronavirus pandemic. Eligible taxpayers can now claim the second and final grant under the scheme. Grants...

Making Tax Digital – the next steps

Making Tax Digital – the next steps On 21 July, the Treasury published a report, Building a trusted, modern tax administration system, which sets out the Government’s vision of what they wish to achieve in the next ten years. The vision comprises three...

Bonus for employers who retain furloughed staff

Bonus for employers who retain furloughed staff The Chancellor, Rishi Sunak, presented A Plan for Jobs at the time of the Summer Economic Update on 8 July 2020. This included incentives for employers who retain furloughed staff and who offer training and...

New rules for claims under the CJRS

New rules for claims under the CJRS The second and final phase of the Coronavirus Job Retention Scheme (CJRS) runs from 1 July 2020 to 31 October 2020. During this phase, furloughed workers may return to work part-time under the flexible furloughing provisions. New...

Temporary increase in residential SDLT threshold

Temporary increase in residential SDLT threshold To help boost the housing market and allied sectors, the residential Stamp Duty Land Tax (SDLT) threshold in England and Northern Ireland has been increased from £125,000 to £500,000 for a temporary period...

Reduced rate of VAT for hospitality sector

Reduced rate of VAT for hospitality sector To support businesses and jobs in the hospitality sector, the reduced (5%) rate of VAT applies to supplies of food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar establishment across the UK...

NIC implications of COVID-19 support payments

NIC implications of COVID-19 support payments Various support payments have been made to help those affected by the COVID-19 pandemic. How are those payments treated for National Insurance purposes? Grant payments under the CJRS Where an employer claims a grant...

SEISS extended

SEISS extended The Self-Employment Income Support Scheme (SEISS) has been extended. Eligible self-employed taxpayers will be able to claim a second, and final, grant under the scheme in August. Eligibility The eligibility criteria for the second grant are the same as...

Changes to trading activities as a result of COVID-19

Changes to trading activities as a result of COVID-19 The COVID-19 pandemic and restrictions on trade have led many businesses to change what they do in a bid to survive. An example of this is the village pub opening instead as a local shop selling food and other...

Flexible furloughing

Flexible furloughing The Coronavirus Job Retention Scheme (CJRS) has provided a lifeline for many employees and employers during the COVID-19 pandemic. As at 21 June 2020, 9.2 million employees had been furloughed by 1.1 million employers who had, collectively,...

Option to defer July self-assessment payment on account

Option to defer July self-assessment payment on account Taxpayers facing financial difficulties as a result of the COVID-19 pandemic can opt to delay making their second self-assessment payment on account for 2019/20, due by 31 July 2020. As long as the amount is paid...

Expenses and Benefits Returns for 2019/20

Expenses and Benefits Returns for 2019/20 Employers who provided taxable expenses and benefits to their employees during the 2019/20 tax year will, as usual, have to tell HMRC about these by 6 July 2020. This obligation is unchanged despite the COVID-19 pandemic. Form...

Coronavirus Job Retention Scheme extended

Coronavirus Job Retention Scheme extended The Chancellor, Rishi Sunak, announced on 12 May that the Coronavirus Job Retention Scheme would be extended until 31 October 2020. The scheme enables employers adversely affected by the COVID-19 pandemic to furlough staff...

Claim SSP for Coronavirus-related absences

Claim SSP for Coronavirus-related absences Smaller employers who have paid statutory sick pay (SSP) to employees who were absent from work due to a Coronavirus-related absence can now claim a rebate from the Government. The claim portal went live on 26 May 2020. Who...

COVID-19 self-employed scheme

COVID-19 self-employed scheme After mounting pressure for clarification on the COVID-19 support that was expected to be made available on the 26 March, the Chancellor Rishi Sunak has now announced the details of the self-employed income support scheme (SEISS) and how...

Making Tax Digital – soft landing extension

Making Tax Digital – soft landing extension One-year extension for MTDfV soft landing In a welcome response to COVID-19, HMRC has extended its digital links ‘soft landing period’ by twelve months to April 2021. HMRC Email In a widely distributed...

Optimal salary for 2020/21

Optimal salary for 2020/21 A popular profit extraction strategy for personal and family companies is to pay a small salary and to extract further profits as dividends. With new National Insurance thresholds applying for 2020/21, what is the optimal salary for the new...

Supporting employees working from home

Supporting employees working from home As a result of the COVID-19 pandemic, many employees are now working at home in accordance with Government instructions to help reduce the spread of Coronavirus. Providing equipment to employees working from home Employees may...

Coronavirus Job Retention Scheme

Coronavirus Job Retention Scheme The online claim portal for the Coronavirus Job Retention Scheme (CJRS) went live on 20 April 2020, allowing employers who have furloughed staff as a result of the COVID-19 pandemic to claim grants from the Government equal to 80% of...

COVID-19: SSP Relaxations

COVID-19: SSP Relaxations To help employees and businesses manage the Coronavirus outbreak, a number of relaxations have been made to the statutory sick pay (SSP) rules. They apply from 13 March 2020. Details are on the Gov.uk website. SSP payable from day one...

COVID-19: Business rate relief and grants

COVID-19: Business rate relief and grants To help business affected by the COVID-19 pandemic, the Chancellor announced a number of measures effected through the business rates system. Business rate retail relief increased and extended At the time of the 2020 Budget,...

Budget 2020 – rates and allowances

Budget 2020 – rates and allowances The Chancellor, Rishi Sunak, presented his first Budget on 11 March 2020, confirming the rates and allowances applying for the 2020/21 tax year. The following key rates and allowances were announced. Full details of the rates...

Off-payroll working rules delayed

Off-payroll working rules delayed In a surprise move, the Government have announced that the reforms to the off-payroll working rules have been delayed by one year and will now come into effect from 6 April 2021. The delay is to help businesses affected by the...

Using capital losses

Using capital losses Where capital gains tax would be payable on a gain made on the disposal of an asset, if the disposal results in a loss, the loss is an allowable loss for capital gains tax purposes. Gains in the same tax year In the event that capital gains are...

Termination payments and employer National Insurance

Termination payments and employer National Insurance From 6 April 2020, employers will have to pay Class 1A National Insurance contributions on taxable termination payments in excess of the £30,000 tax-free limit. However, no contributions will be payable by...

National Insurance contributions for 2020/21

National Insurance contributions for 2020/21 The starting point for paying National Insurance is to increase to £9,500 for 2020/21 for employees and for Class 4 contributions payable by the self-employed. This is in line with a Government commitment to increase...

Personal allowances – use them or lose them

Personal allowances – use them or lose them With the end of the 2019/20 tax year approaching, now is a good time to review your available personal allowances for 2019/20 and make sure that they are not wasted. Personal allowance For 2019/20, the personal...

Reducing your payments on account

Reducing your payments on account Under the self-assessment system, a taxpayer is required to make payments on account of their tax liability where their income tax and Class 4 National Insurance bill for the previous tax year was £1,000 or more, unless at least...

Loan charge – changes announced

Loan charge – changes announced The 2019 loan charge applied to loans made through a disguised remuneration loan scheme on or after 6 April 1999 which remained outstanding on 5 April 2019 and in respect of which settlement had not been reached with HMRC by that...

Determining worker status using HMRC’s CEST tool

Determining worker status using HMRC’s CEST tool From 6 April 2020 the off-payroll working rules are extended. The impact of the new rules was discussed in the December 2019 Newswire. Under the new rules, medium and large private sector organisations engaging...

Changes to Property Taxation – 2017 to 2020

Changes to Property Taxation – 2017 to 2020 2017 Income Tax – Restriction of finance costs for individual landlords In his 2015 post-election summer Budget, George Osborne informed residential landlords that from April 2017 their ability to claim higher...

Tax Return Tips

Tax Return Tips The 2018/19 self-assessment tax return must be filed online by midnight on 31 January 2020 if a late filing penalty is to be avoided. What can you do to help ensure this deadline is not missed? Help us to help you The tax return season is a very busy...

Off-payroll working – plan ahead for the changes

Off-payroll working – plan ahead for the changes The tax playing field is not a level one – the tax and National Insurance take where a worker is employed is higher than that where that worker provides his or her services through a personal service company...

Beware the trivial benefits gift card trap

Beware the trivial benefits gift card trap The tax exemption for trivial benefits is a handy exemption as it allows employers to provide employees with low cost benefits tax-free. However, where the benefit is in the form of the gift card, it is easy to fall foul of...

Voluntary NICs – Should you pay?

Voluntary NICs – Should you pay? The single-tier state pension is payable to individuals who reach state pension age on or after 6 April 2016. Entitlement to the state pension is dependent on having been paid or credited with sufficient National Insurance...

Can you claim small business rate relief?

Can you claim small business rate relief? Business rates are payable on non-domestic properties such as offices, shops and factories. The rates are worked out on the rateable value of the property, but there are various reliefs available including small business rate...

File your tax return by 30 December

File your tax return by 30 December The 2018/19 self-assessment tax return must be filed online by midnight on 31 January 2020 if a late filing penalty is to be avoided. A later deadline applies where the notice to file a return was not given until after 31 October...

Parties and Presents

Parties and Presents The taxman is not entirely lacking in Christmas spirit and the tax system features a number of exemptions which enable employers to put on a party for staff or to give employees a seasonal gift without triggering an unwanted tax liability....

Have you got your EORI number?

Have you got your EORI number? UK businesses will need an ‘Economic Operator Registration Identification’ (EORI) number to trade with the EU after Brexit. If there is a ‘no-deal’ Brexit In the event that the UK leaves the EU on 31 October 2019...

Beat the changes to main residence ancillary reliefs

Beat the changes to main residence ancillary reliefs From 6 April 2020, two of the reliefs associated with the Capital Gains Tax (CGT) main residence relief are to be significantly curtailed. Therefore, if you are likely to be affected and are currently considering...

A One Year Tax Break for Zero Emission Company Cars

A One Year Tax Break for Zero Emission Company Cars The UK government recently announced its intention to exempt newly registered zero-emission company cars from a benefit in kind tax charge for one year from April 2020. This exemption underlines the key role that the...

Improve task organisation with this simple concept

Improve Task Organisation with this Simple Concept. The daily grind, for so many, can feel like a constant juggling act. You attempt to balance work, household chores, bills, family – and hopefully some leisure in between if there’s any time leftover. Trying to...

Latest Employer Bulletin

Latest Employer Bulletin The latest edition of HMRC’s Employee Bulletin was issued in June. Topics covered in the bi-monthly magazine, include some of the following: Guidance for employers to help their employees with tax-free childcare for the summer holidays. Advice...

Workforce preparations for Brexit

Workforce Preparations for Brexit The government has advised that EU citizens who wish to continue to work, live, or study in the UK, after it leaves the EU on 31 December 2020, should apply to the EU Settlement Scheme (EUSS). An employer toolkit is available to...

It’s that time of year again!

It’s That Time of Year Again! At this time of every year, HM Revenue and Customs embark on a massive computerised reconciliation process. This is to check that those with PAYE records, but not in self-assessment, have paid the right amount of tax in the preceding tax...

Six Ways an App Can Support Business Growth

The use of the smartphone has changed dramatically over the past decade: it has gone from being merely a gadget to being an increasingly used and increasingly important lifestyle and business tool. A report by Ofcom (the UK regulator for the communications services)...

New advisory fuel rates for company cars

The new fuel rates take effect from 1 June 2019, although the previous rates can be used for an additional month. These rates only apply to employees who are using a company car in the following scenarios: When employees are reimbursed for business travel in their...

Ancillary Capital Gains reliefs consultation

The Capital Gains Tax (CGT) consultation on Private Residence Relief (PRR) and on changes to ancillary reliefs is now closed. The consultation ran from 1 April 2019 until 1 June 2019. Historically, PRR has been a very useful way to reduce the taxable gains arising...

Companies House open consultation

HMRC currently has an open consultation on proposals to further improve the role of Companies House, with a view to having businesses submit more information for the purpose of helping to tackle economic crime. The consultation’s focus is to stop the registered...

Tax code mix up for Welsh taxpayers

From April 2019 onwards, the Welsh Government has devolved powers to decide the rates of Income Tax payable by Welsh taxpayers. The above means the Welsh Government have the ability to vary the Welsh rates of Income Tax or to keep them the same as those paid by...

P11D submission deadline

The HMRC form P11D is the form employers use to report the details of taxable expenses and benefits provided to employees and directors during the course of a tax year, after that year has ended. Employees pay tax on the benefits disclosed on the submitted P11D via a...

Minimum wage regulations

In a recent report by the Low Pay Commission (LPC), it was found that the number of people being paid less than the statutory minimum wage is on the rise. In April 2018, 439,000 workers were paid less than the National Minimum Wage (NMW), and out of those individuals,...

5 Top Tips for Successful Freelancing

5 Top Tips for Successful Freelancing Here we provide some top tips for keeping your freelancing work organised, healthy, and successful! Although it is not possible to provide a one-size-fits-all plan, these tips will certainly help to keep your freelancing affairs...

VAT fuel charge updates

There are new road scale fuel charges with which businesses must comply effective from 1 May 2019. The updated valuation table includes the new scale charges, and is available to view...

Scottish Air Departure Tax plans further delayed

The plans to replace Air Passenger Duty (APD) with Air Departure Tax (ADT) have been delayed by the Scottish Government until at least 2020. As part of the Scotland Act 2016, the Scottish Parliament can charge travellers tax when leaving Scottish airports. As a...

Pensions Dashboard Initiative

The Pensions Dashboard is a new Government initiative which will now move forward, it has been confirmed. The dashboard will be introduced with a view to allow individuals to save for retirement and to view information from multiple pensions on one centralised...

Employer Bulletin

The latest version of the Employer Bulletin is available to view online. The April edition includes the following topics, and more: Cash Allowances, Flexible Benefits Packages and Salary Sacrifice Unpaid work trials and the National Minimum Wage EU Exit Preparedness...

Tax scams update

HMRC and Action Fraud have warned of high numbers of springtime scams. These tend to target those who may be less experienced with the tax system, such as the young and the elderly. Between March and May 2018, HMRC received nearly 250,000 reports of phishing, and...

Improving your Productivity in Three Easy Ways

According to Close Brothers, in terms of productivity – something assumed to be one of the largest challenges facing business – the UK lags behind the rest of the G7 by 16%. Nearly half of UK small and medium-sized enterprises (SMEs) say new technology would increase...

Structures and Buildings Allowance Consultation

The Spring Statement, delivered in March by Philip Hammond, included an update and open consultation on Structures and Buildings Allowance (SBA). The relief is available for new commercial structures and buildings – and will also be available where an existing...

Making Tax Digital for VAT update

The new Making Tax Digital for VAT (MTDfV) rules came into effect on the 1 April 2019. The new rules require businesses with an annual VAT-taxable turnover above £85,000 to keep digital records for VAT purposes, and to submit their VAT return to HMRC using...

P11D Deadline for Submission to HMRC

P11D forms are due, by 6 July 2019, for the year which ended on 5 April 2019. The P11D is used to report benefits and some expenses provided to directors and employees. If, as an employer, you report your employee benefits by year, using payrolling, you do not need to...

Updates to Income Tax for 2019/20

The new tax year, effective from 6 April 2019, brings changes to income tax allowances and bands. The following updates now apply. Rates of Tax While the basic rate of tax will remain at 20%, the 2019/20 basic rate band – the threshold above which income is taxable at...

New Brexit Advisory Tool

The UK Government has issued new advice to small businesses on how they could be affected by the UK’s leaving the EU. The documents contain advice regarding a range of issues, such as sending and receiving personal data and EU-UK trading. The UK government recommends...