Although there is no official Budget statement this Autumn, HMRC have published details of a series of measures affecting tax. Some of the changes will take place straight away or from April 2021, others are to be consulted on and included in draft Finance Bill 2021. The key announcements are summarised in the following paragraphs.

Capital allowances AIA extended

The Government has announced that it is extending the current temporary level of the Annual Investment Allowance (AIA) of £1,000,000 by one year covering 1 January to 31 December 2021.

This extension…

HMRC have recently clarified the correct treatment for the deduction of import VAT paid by a taxable person who is not the owner of the relevant goods.

Following the publication on HMRC Brief 2 (2019), which restated the long-standing policy of who is entitled to reclaim VAT paid on imports under current UK legislation, HMRC received a number of representations from businesses and business representatives about the application of the rules in specific cases. HMRC’s have now completed their review and have confirmed that the policy outlined Brief 2…

Millions of self-employed individuals have been eligible to receive direct cash grants through the government’s Self-Employment Income Support Scheme (SEISS), to help them during the coronavirus outbreak.

There are four opportunities to receive a grant under the SEISS, although the deadlines for the first two parts have now passed.

For parts three and four, the government says it will provide two taxable grants to support those experiencing reduced demand due to Covid-19 but are continuing to trade, or temporarily cannot trade. Payments will be available to anyone who was previously…

Business Wales have today released further details on the firebreak and lockdown grants. These grants will be open to applications from tomorrow (28th October 2020). Availability is on a first come, first served basis so we recommend clients act quickly to secure any grants they are eligible for.
Lockdown Non-Domestic Rate Grants

Grant 1

A grant of £5,000 is being made available for retail, leisure and hospitality businesses that have been forced to close (as defined by the regulations) and occupy properties with a rateable value of between £12,001 and £51,000….

Businesses need to prepare ahead of new Customs procedures coming into play in 2021 when the Brexit transition period ends. The Government has made funding available in the form of a grant to help businesses get ready.

Who can apply?

To qualify for a grant a business must:

– have been established in the UK for at least 12 months before the submission of the application and when the grant is paid; and
– not have previously failed to meet its tax obligations.

In addition, the businesses must meet one of the following…