Archive:May 2021

Please find below all the articles from May 2021.

Making Tax Digital

Saturday, May 1, 2021

From 1 April 2021, all compulsorily VAT-registered businesses that submit electronic VAT returns are required to digitally link the business records to their VAT returns. This must be done by using HMRC approved bookkeeping software. This can include spreadsheets prepared in Microsoft Excel, or similar software, but the key point is that the data must flow automatically from the initial manual input to the VAT return. HMRC does not accept that the use of cut-and-paste or copy-and-paste to move information between software programs, or within different parts of…

Debt factoring and VAT

Saturday, May 1, 2021

Due to the coronavirus, many businesses are experiencing cash flow issues as their customers struggle to make payments in good time. A range of banks offer debt factoring as a way of improving the cash flow position. However, there are VAT considerations that should not be overlooked.

Debt factoring is the term used for any one of a number of arrangements that involve transferring the right to payment of invoices to a third party, e.g. a bank. The business invoices its customer in the usual way, the bank then…

Student loans for 2021-22

Saturday, May 1, 2021

Starting from 6 April 2021, there is a new type of undergraduate student loan that employers need to be aware of when operating payroll – the Plan 4 loan (SLP4). The new plan type has been necessary due to the Scottish government amending certain details regarding repayment, including the increase of the earnings threshold. SLP4 will apply to all new and existing Scottish borrowers. This means that Scottish borrowers that were in repayment before 6 April 2021 using the Plan 1 (SLP1) arrangements will need to be moved…

Latest news round up

Saturday, May 1, 2021

Off-payroll working

The extension of the off-payroll working rules to medium-sized and large organisations finally took effect on 6 April. The responsibility for making an employment status determination for each engagement where the worker’s services are provided through an intermediary now rests with the client receiving the services, i.e. the engager/hirer for affected entities.

The rules now apply to all public sector clients and, from 6 April, private sector companies that meet 2 or more of the following conditions:

– the annual turnover of more than £10.2 million;
– the company has…