Uncategorised

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

Covid-19: Government unveils winter economy plan

Friday, October 2, 2020

Chancellor Rishi Sunak has unveiled the Government’s winter economy plan, providing an update on current coronavirus support measures for individuals and businesses, and announcing the launch of a new Job Support Scheme.

Key points of the statement include:

– the Coronavirus Job Retention Scheme (CJRS) will end as planned on 31 October 2020;
– a new Job Support Scheme will provide funding for employers who are able to retain employees but on shorter hours. The scheme will initially run for six months from November;
– the temporary reduced (5%) rate of VAT…

Applying for a customs grant

Tuesday, September 1, 2020

The next phase of the customs grant scheme is now open for applications. It sees a record £50 million investment as part of the measures to accelerate growth of the customs intermediary sector and help meet the increased demand it will see from traders at the end of the transition period.

Broadly, there are three grants available to help businesses complete customs declarations.

A business can apply to get funding for:

– training that helps the business to complete customs declarations and processes;
– hiring new staff to help the…

Helping employees with cheap loans

Tuesday, September 1, 2020

In the current difficult economic client, employees may need to approach their employer for financial assistance in the form of a loan. Under the strict letter of the law, a tax charge will arise where a director or employee obtains a benefit by reason of their employment when they, or any of their relatives, is given a cheap or interest-free loan. The tax charge generally arises on the difference between interest at the appropriate ‘official rate’ (currently 2.25%) and the interest, if any, actually paid. Such loans are…

HMRC launch consultation on NIC holiday for veterans

Tuesday, September 1, 2020

The Government currently provides a career transition package to service personnel leaving the Armed Forces which supports around 86% into employment. However, 6% of veterans using the service remain unemployed up to a year after leaving. The Government made a manifesto pledge to back veterans, by scrapping employer National Insurance Contributions (NICs) for a full year for every new employee who has left the Armed Forces. This policy is now being developed and is expected to take effect from April 2021.

HMRC have launched a consultation entitled Supporting veterans’…

Covid-19 support: SEISS second claim service open

Tuesday, September 1, 2020

The Self-Employment Income Support Scheme (SEISS) claims service for the second and final grant is open from 17 August 2020. Individuals eligible for the second and final grant, where their business has been adversely affected on or after 14 July 2020, can make a claim on or before 19 October 2020.

HMRC will provide claimants with a date from which individual claims can be made.

The second part of the grant is based on 70% of earnings and capped at £6,570.

Who can claim?

Anyone who is self-employed or a partner in…

VAT FRS temporary rate reductions confirmed

Monday, August 3, 2020

In the Government’s Summer Update on 8 July 2020, the Chancellor announced a six-month reduction in the VAT rate on supplies of food and non-alcoholic drinks from restaurants, pubs, bars and cafes, as well as to supplies of accommodation and admission to tourist attractions.

The rate cut from 20% to 5% took effect on 15 July 2020 and will be in place until 12 January 2021 to support businesses and jobs in the hospitality sector across the UK.

Many smaller businesses use the VAT flat rate scheme (FRS) as it…

Reduced property transaction charges

Monday, August 3, 2020

Recent research revealed that property transactions fell by more than 50% in May and house prices have fallen for first time in eight years. In an attempt to help boost the housing market, a temporary reduction in stamp duty land tax (SDLT) in England and Northern Ireland has been introduced. The Scottish and Welsh Governments have also announced corresponding reductions to Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT).

SDLT

The nil rate band threshold for SDLT payments on residential property has been temporarily increased from £125,000…

CGT reporting deadline

Monday, August 3, 2020

Under new rules capital gains tax (CGT) on disposals of UK residential property must be reported by 31 July to avoid a penalty.

Finance Act 2019 made certain changes regarding payment of CGT, which took effect from April 2020 and broadly align the position of UK residents and non-UK residents. From 6 April 2020, a UK resident who sells a residential property in the UK will have 30 days to tell HMRC and pay any CGT owed. Failure to notify HMRC within 30 days of completing a sale may…

Managing LISAs on death or terminal illness

Monday, August 3, 2020

Lifetime ISAs (LISAs) continue to provide a tax-efficient savings vehicle for investors as there will be no income tax to pay on interest earned and no capital gains tax to pay on subsequent profits arising on the money invested. Up to £4,000 a year can be invested in a LISA, with the government providing a 25% bonus on contributions at the end of each tax year up to the age of 50.

LISAs can generally held by an individual who:

– is 18 years old or more;
– is under 50…

Advisory fuel rates update

Wednesday, July 1, 2020

HMRC publish rates that can be used by employers wishing to pay their employees the cost of fuel for business journeys in company cars (or, where the employer initially pays for all fuel, for reimbursement of private mileage by company car drivers to their employers). Hybrid cars are treated as petrol or diesel cars for this purpose.

HMRC’s guidance on fuel-only mileage rates for company cars confirms that employers are not obliged to use advisory fuel rates. Where an employer wishes to use them, they only apply where the employer:

– reimburses…