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New regulations to exempt payments made to employees for coronavirus antigen tests from NICs

21 Dec, 2020

The Social Security Contributions (Disregarded Payments) (Coronavirus) (No. 2) Regulations 2020 will come into force on 25 January 2021 to provide that payments made by employers to employees to cover or reimburse the costs of coronavirus (COVID-19) antigen tests are to be disregarded for NICs purposes, and so there will be no NICs liability for either the employer or the employee. The Government has also stated that a corresponding Income Tax exemption for such payments is to form part of the Finance Bill 2021.

Tax Diary January/February 2021

20 Dec, 2020

1 January 2021 - Due date for Corporation Tax due for the year ended 31 March 2020.

19 January 2021 - PAYE and NIC deductions due for month ended 5 January 2021. (If you pay your tax electronically the due date is 22 January 2021)

19 January 2021 - Filing deadline for the CIS300 monthly return for the month ended 5 January 2021. 

19 January 2021 - CIS tax deducted for the month ended 5 January 2021 is payable by today.

31 January 2021 – Last day to file 2019-20 self-assessment tax returns online.

Too good to be true?

17 Dec, 2020

Right now, any reference to a return to 2019 trading conditions seems to echo the title of this short article, too good to be true.

Common sense tells us that we are unlikely to emerge largely, COVID-free until the end of 2021 and additionally, many traders and consumers are apprehensive of the coming EU exit.

Never-the-less, we would be wise to be on the lookout for signs of optimism.

Sharing costs

17 Dec, 2020

Independence is a cultivated concern. We all want to be self-sufficient.

In a business environment this might manifest as having a separate Wi-Fi source even though it may be possible to share Wi-Fi with a number of business neighbours and divide the cost between you?

There will always be what-ifs to this type of co-operative effort but if the cost sharing made a joint contribution to cost savings wouldn’t it be worth exploring your options?

Retail outlets in a common location could club together to promote their mall or street.

SMP, SAP, SSP, ShPP, SPBP and SSP to rise from April 2021

17 Dec, 2020

According to proposals set out in a government policy paper, the revised rates for statutory maternity pay (SMP), statutory adoption pay (SAP), statutory paternity pay (SPP), statutory shared parental pay (ShPP), statutory parental bereavement pay (SPBP) and statutory sick pay (SSP) for tax year 2021/22 are to be as follows:

UK VAT claims by non-EU businesses

17 Dec, 2020

There are special rules for businesses established outside the EU submitting a claim for VAT incurred on goods or services bought in the UK. The exact rules of what VAT is refundable can be complex. There are also a number of conditions which must be met in order for a claim to qualify.

What is Tangible Moveable Property?

17 Dec, 2020

A chattel is a legal term that defines an article which is a tangible moveable property. A tangible object is one that you can touch. The asset has to be a physical asset such as household furniture, paintings, antiques, items of crockery and china, plate and silverware, motor cars, lorries, motorcycles and items of plant and machinery not permanently fixed to a building.

Export finance for smaller businesses

17 Dec, 2020

UK Export Finance (UKEF) is the export credit agency and a ministerial department of the UK government.  The UKEF helps UK companies by providing insurance to exporters and guarantees to banks to share the risks of providing export finance. In addition, it can make loans to overseas buyers of goods and services from the UK that can protect UK exporters facing delayed payments or transit restrictions.

Consultations to crack down on fraud announced

17 Dec, 2020

The government has unveiled three new consultations to help combat fraud by reforming the UK’s register of company information. This follows an announcement earlier this year that 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.

Tax-free gifts for Christmas

17 Dec, 2020

After a very difficult 2020, the traditional Christmas break is almost with us. If you are an employer and looking to give your employees a small token of appreciation for Christmas, then your best option is probably to give them a gift. In order to ensure that this is not a taxable gift, it is important to that the trivial benefits in kind (BiK) rules apply.

There is no tax to pay on trivial benefits in kind (BiK) provided to employees where all of the following apply:

Are you ready to make customs declarations?

17 Dec, 2020

HMRC has written to VAT registered businesses across the country to remind them to be prepared for new trading rules with the EU from 1 January 2021 after the Brexit transition period comes to an end. Time is running short and without having all of the correct procedures and agreements in place it will be almost impossible to trade with the EU from 1 January 2021, technically from 11pm GMT on 31 December 2020.

Accounting for import VAT on your VAT return

17 Dec, 2020

From 1 January 2021, businesses will be able to account for import VAT on imports into Great Britain (England, Scotland and Wales) from EU and non-EU countries. Businesses in Northern Ireland will be able to use the postponed VAT accounting for goods imported from outside the UK and EU. The normal rules setting out what VAT can be reclaimed as input tax will apply.

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