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Archive:January 2021

Please find below all the articles from January 2021.

HMRC launches UK VAT number checking tool

Following the UK’s exit from the European Union, VAT registration details of UK companies will no longer be maintained on the VAT Information Exchange System (VIES). Being able to check the validity of a new supplier’s VAT number is an important step in combatting VAT fraud.

For example, a rogue supplier might provide what looks like a valid VAT invoice to another business. In reality, the supplier isn’t VAT registered and the VAT registration number on the invoice is fake. The supplier simply pockets the 20% “VAT” charged. The…

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First-year allowances for zero emission cars to continue

There was some confusion when Finance Act 2020 was published. The government had announced that it would be extending the current enhanced 100% first-year allowance (FYA) available for zero-emission vehicles. However, when the legislation was published there was no mention of any extension, leading to speculation that the FYA would be scrapped in April 2021.

The position has now been clarified, and the 100% FYA will be available for the purchase of zero-emission cars until April 2025. It will also be available for purchases of equipment for gas refuelling…

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Reverse charge for building services imminent

After two delays, the new rules for certain building services will finally take effect from 1 March 2021. Under the current rules, a business (for example a builder) will add VAT to their sales invoices passed to their customers, and then account for this to HMRC via the VAT return. The problem is that HMRC feels that there is a high amount of what is called “missing trader fraud” in the construction industry, i.e. where the trader charges and collects VAT, but then absconds with it without paying…

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Latest round up

With much of the country entering Tier 3 restrictions around Christmas, and Wales being put back into a stay at home lockdown from 28 December, it is inevitable that there would be further announcements made with respect to business-related COVID-19 measures.

Extension of furlough scheme

The Coronavirus Job Retention Scheme (CJRS) was initially supposed to end on 31 October 2020. However, this was extended to 31 March. On 17 December, the Chancellor announced that the scheme would be further extended to the end of April 2021. The government will therefore…

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