Call us on 01792 466 428
Book a FREE Consulation

Uncategorised

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

VAT registration – delays

Due to COVID19, some businesses are experiencing long delays in obtaining a VAT number after submitting the registration form. HMRC acknowledged the delays earlier this year and have asked businesses to be patient whilst the backlog is worked through. However, a business that is new to VAT may be confused about what they need to do in the interim.

Strictly speaking, if a business is registering due to exceeding the historic twelve-month turnover threshold it must start charging VAT from the first day of the second month…

Read More

Property CGT – avoid reporting traps

Since April 2020, UK-resident taxpayers have been required to report gains on residential property, and make a payment on account of the tax due, within 30 days of completion. One of the key features of the reporting regime is that this 30-day reporting is only required where tax is due. If a gain is covered by the available annual exempt amount, or by losses that have crystallised before the completion date (but not later losses – even from the same tax year), no special return is needed. In…

Read More

P11Ds for 2020/21 – COVID19 considerations

The P11D filing deadline for 2020/21 is 6 July 2021. Usually, this is a routine exercise in most cases. However, due to COVID19, some additional consideration may be required this time round. HMRC have published guidance regarding certain items that need some thought because of the pandemic.

COVID19 testing

Any COVID19 tests provided by the government as part of its national testing scheme, for example for healthcare workers and other frontline staff, are not treated as a benefit in kind.

For other employers, the cost…

Read More

Latest news round up

Finance Act 2021

The Finance Bill that was published on 11 March 2021 received Royal Assent on 10 June and can be viewed online here.

COVID19

From 1 July the level of government support for the furlough scheme will reduce. The government contribution will fall to 70%, subject to a cap of £2,187.50 per month. The employer will now be required to make a contribution of at least 10% (up to £312.50) to maintain the 80% employees were previously entitled to. Employers can…

Read More

VAT group registration

Reference is usually made to a VAT-registered business. However, this is not quite correct as it is the person, either real or legal, that is actually registered. For example, where sole trader has a number of different business activities it is not possible to register them separately. Is the sole trader themselves that the VAT number relates to.

In the case of companies, all activities carried out by the company will come under the company’s VAT registration number. However, where there are a number of companies, they will usually…

Read More

Gift aid problems

Most people give to charity in one form or another at some point. This could be by donating unwanted clothes, books, and so on to the local charity shop. They can also be a cash donation via a site like Just Giving, or they may be ongoing payments by direct debit – commonly for qualifying memberships such as the National Trust, or English Heritage etc.

In light of the impact of Covid-19 on finances it is a good idea to review these arrangements now in order to…

Read More

Non-resident SDLT surcharge now in effect

Since 1 April 2021, any non-UK resident purchasing UK residential property are liable to a 2% surcharge where the property is located in England or Northern Ireland, and cost more than £40,000. This applies to both individuals and companies.

The definition of “non-UK resident” for the purposes of the surcharge has a different meaning than for income tax and CGT, both of which are determined by the statutory residence test (SRT). For SDLT purposes, an individual will be non-UK resident if they were not present in the UK for…

Read More

Latest news round up

Finance Bill amendments

Following the Budget in early March, the current Finance Bill was published on 11 March 2021. Since that date, a number of amendments have been made. Of the most significant, the following stand out in particular.

A clause in Schedule 2 that explicitly included furnished holiday lettings in the provisions for the temporary extension to loss relief has been deleted. When the bill was first published, some commentators pointed out that further changes to the law would be required because FHL businesses are not eligible to use…

Read More

Making Tax Digital

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…

Read More

Debt factoring and VAT

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…

Read More