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Uncategorised

Please find below all the articles that have been categorised as 'Uncategorised'.

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 news 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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Gift Aid tax relief

This year, many charities have been heavily impacted by the coronavirus pandemic and have struggled to raise funds. Highlighting the prospects of tax reliefs on donations is one way to encourage gifts.

Broadly, the government’s Gift Aid scheme is designed to help maximise the value of a gift made to a charity by allowing most UK taxpayers to claim tax relief on the gift.

Under the Gift Aid scheme, individuals can claim tax relief on making one-off or regular gifts to charity. No lower or upper limit applies on donations…

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Directors’ loans – a reminder of the tax charge

Cash transactions between a director and a personal or family company are recorded through the director’s account. At the end of an accounting period, if the director owes the company money (ie the account is considered overdrawn), and the company is close (broadly, one that is controlled by five or fewer shareholders (participators)), there will be tax consequences to consider.

The s 455 charge

A tax charge will arise under the Corporation Tax Act 2009, s 455 where a director’s loan account is overdrawn at the end of the accounting…

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HMRC encourage businesses to register for the Trader Support Service

The Government is urging businesses to sign up to the Trader Support Service (TSS) before the end of the Brexit transition period.

The new service provides a free-to-use digital platform to help businesses and traders of all sizes navigate the upcoming changes to the way goods moved under the Northern Ireland Protocol from 1 January 2021.

The service launched at the end of September and by the middle of November more than 7,000 businesses had signed up. HMRC are however, encouraging more businesses to follow suit.

The TSS contact centre, which…

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Finance Bill 2021 and other changes

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…

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GUIDANCE FOR OUR CLIENTS – CORONAVIRUS (COVID-19) – CJRS/Furlough Extension – 3nd November 2020

After the Prime Minister’s surprise announcement late Saturday afternoon we wanted to share the limited information we have regarding The Coronavirus Job Retention Scheme extension (also known as ‘furlough’) with clients.

The below only provides guidance on the Job Retention Scheme Extension, we strongly advise clients to seek employment/HR advice prior to placing any employee(s) on furlough or extending an employee’s furlough.

Key Points:
The extension will last until December 2020.
The scheme will be based on the August 2020 rules, this means employers can claim 80% of their employees normal wages…

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HMRC review of import VAT deducted as input tax by non-owners

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…

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The ‘new normal’ for Christmas parties?

As we approach the end of the year, thoughts may be turning towards upcoming Christmas celebrations and alike – although this year, the traditional work’s Christmas party is likely to look very different.

Whilst the tax legislation does not include a specific allowance for an employer providing a Christmas party for employees, HMRC do allow limited tax relief against the cost providing social functions. Relief will still be available even where such an event is being held in a different format due to the coronavirus restrictions – possibly even…

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