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Furlough extended to end April 2021

17 Dec, 2020

During an announcement to Parliament today, 17 December 2020, the Chancellor confirmed the following:

  1. An extension of the furlough scheme until the end of April 2021,
  2. The date for Budget 2021 has been fixed as 3 March 2021, and
  3. Businesses will have until the end of March 2021 to apply for Government backed, Bounce-Back and other loan schemes.

In a following press release it was confirmed:

Employing domestic staff

10 Dec, 2020

When you employ someone to work in your home it is your responsibility to meet the employee's rights and deduct the correct amount of tax from their salary. This can include employees such as a nanny, housekeeper, gardener or carer. The rules are different if the person is self-employed or paid through an agency.

If you employ anyone they must:

Correcting errors on VAT returns

10 Dec, 2020

Where an error on a past VAT return is uncovered, businesses have a duty to correct the error as soon as possible. As a general rule, any necessary adjustment can be made on a current VAT return. However, in order to be able to do so, there are three important conditions that must be met:

Could the Trader Support Service help your business?

10 Dec, 2020

The new Trader Support Service has been designed to help businesses moving goods under the Northern Ireland Protocol from 1 January 2021, after the Brexit transition period comes to an end. There will be changes in moving goods between Great Britain and Northern Ireland whether or not a Free Trade Deal is reached.

Do you owe CGT on the sale of a residential property?

10 Dec, 2020

HMRC has issued a press release to remind taxpayers that have sold a residential property, which was not their main home, during the 2019-20 tax year that the payment date for any Capital Gains Tax (CGT) owed is 31 January 2021.

Due to the impact of Coronavirus, there are options available to defer payments due on 31 January 2021 and pay by instalments over 12 months. This includes a self-serve Time to Pay facility online for debts up to £30,000 or by arrangement with HMRC. Interest will be applied to any outstanding balance from 1 February 2021.

HMRC crackdown on avoidance schemes

10 Dec, 2020

HMRC and the Advertising Standards Authority (ASA) have come together to jointly target misleading marketing by promoters of tax avoidance schemes. HMRC and the ASA can jointly issue an Enforcement Notice to companies irresponsibly advertising tax arrangement schemes in a bid to clamp down on those breaking the rules.

SDLT change for mixed use buildings

10 Dec, 2020

HMRC’s published guidance on the application of the 3% higher rate of Stamp Duty Land Tax (SDLT) has been updated. The higher rates of SDLT were introduced on 1 April 2016 and apply to purchases of additional residential property such as buy to let and second homes.

At the time the new higher rates were introduced, HMRC confirmed that where there was a purchase of mixed use buildings consisting of residential and non-residential properties that the 3% higher rate of SDLT applied to the dwelling element.

VAT on delivery charges

10 Dec, 2020

The process for working out the VAT treatment of delivery charges can be quite complex.

We have listed below some of the main issues to bear in mind when deciding whether or not VAT needs to be applied.

Double entry demystified

08 Dec, 2020

Most business owners will know the difference between a profit statement and a balance sheet.

Both are created from a process known as double-entry bookkeeping.

If asked to consider two aspects of a £50 purchase from a stationery store, most would say that their cash reserves have dropped by £50 and the store’s cash reserves had increased by the same amount. This is true, but double entry bookkeeping looks at the two-fold aspect of any transaction from one point of view.

Beware requests from bogus charities

07 Dec, 2020

It has been estimated that almost £350,000 of charitable donations last year ended up in the pockets of criminals.

Government recently issued advice to reduce this activity. They said:

The vast majority of fundraising appeals and collections are genuine, however criminals can set up fake charities, or even impersonate well-known charitable organisations, to deceive victims.

Recent case re late filing appeal

03 Dec, 2020

The First-tier Tribunal (FTT) has dismissed a taxpayer’s appeal for having a reasonable excuse. The taxpayer applied out of time for permission to appeal against penalties imposed by HMRC. The appeal was in relation to late payment penalties imposed on the taxpayer for failing to submit annual Self-Assessment returns on time for the tax years 2010-11 and 2012-13. The taxpayer also appealed against penalties relating to 2009-10 but these were subsequently cancelled by HMRC and therefore did not require consideration by the FTT.

Deadlines for paying deferred VAT

03 Dec, 2020

The coronavirus VAT payment holiday gave businesses the chance to defer the payment of any VAT liabilities between 20 March 2020 and 30 June 2020. The option for businesses to defer their VAT payments ended on 30 June 2020.

There are two options available for repaying this VAT.

The first option is to pay the deferred VAT in full on or before 31 March 2021. No interest or penalties will accrue on deferred payments that are paid by the new due date and there is no requirement to contact HMRC.

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