VAT CUT FOR HOSPITALITY SECTOR CONTINUES
The reduction in VAT to 5% for the hospitality and tourism sector will be extended until 31 March 2021.
SELF EMPLOYED INCOME SUPPORT SCHEME
The existing self-employed grant (SEISS) will be extended on the same basis as the job support scheme. An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus. The initial lump sum will cover three months’ worth of […]
NEW JOB SUPPORT SCHEME ANNOUNCED
On Thursday 24 September Chancellor Rishi Sunak announced a new job scheme starting 1 November 2020 to replace the current Job retention (“furlough”) scheme which ends 31 October 2020. All small and medium-sized businesses are eligible, larger businesses must show their turnover has fallen during the pandemic. Employers can use the new scheme even if […]
RUNNING EFFECTIVE MEETINGS – VIRTUALLY
Over the course of the past few months, we have all had to adapt to working remotely. Despite lockdown restrictions, many businesses have found ways to move their operations online, with all staff working remotely. This has given rise to an increased volume of virtual meetings on services such as Skype, Zoom, Teams, WebEx or […]
TAX DIARY SEPTEMBER/OCTOBER 2020
19 September PAYE & NIC deductions, and CIS return and tax, for month to 5/9/20 (due 22 September if you pay electronically) 1 October Corporation tax for year to 31/12/19 unless pay by quarterly instalments 5 October Deadline for notifying HMRC of chargeability for 2019/20 if not within Self-Assessment and receive income or gains on […]
VAT DEFINITION OF “MOTOR CAR”
For VAT purposes the definition of a motor car has been amended several times over the years. The current definition states: “Motor car” means any motor vehicle of a kind normally used on public roads which has three or more wheels and either: a) is constructed or adapted solely or mainly for the carriage of […]
MTD FOR VAT TO BE EXTENDED TO ALL VAT REGISTERED BUSINESSES IN 2022
Since 2019, the vast majority of VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) have been mandated to keep digital VAT records and send returns using Making Tax Digital (MTD)-compatible software. From April 2022 these requirements will apply to all VAT-registered businesses. It has also been announced that MTD for Income Tax […]
COMPANY VANS WERE MOTOR CARS
The Court of Appeal have now ruled on the tax status of certain vehicles provided to employees of Coca Cola. The court has upheld the HMRC view that vans with windows and a second row of seats behind the driver are not goods vehicles but motor cars for benefit in kind purposes. Consequently, the income […]
CERTAIN PROPERTY BUSINESS OWNERS ARE LIABLE TO CLASS 2 NICs
Class 2 National Insurance Contributions (NICs) are currently paid at the rate of £3.05 per week by self-employed earners. A person who is liable to Income Tax on the profits arising from the receipt of property rental income will only be a self-employed earner for NICs purposes if the level of activities carried out amounts […]
NOTIFY HMRC OF OVERCLAIMED CJRS “FURLOUGH” GRANTS WITHIN 90 DAYS
The calculation of Coronavirus Job Retention Scheme grants has proven to be complex, particularly as HMRC frequently changed the rules and the method of computation. Consequently, many errors have arisen and need to be corrected. The latest Finance Act requires employers to notify HMRC within 90 days where it turns out that they were not […]