Morgan Hemp Blog

Latest News Round Up

Wednesday, September 8, 2021

COVID19

September is the final month of the furlough scheme, subject to any last-minute extension. Employers will need to top up the government’s contribution, which is now 60% of wages (up to a maximum cap of £1,875) to ensure the employee receives the requisite 80% (up to £2,500). The deadline for claiming the government contribution for this final month will be 14 October.

HMRC’s guidance on the fifth SEISS grant was revised on 20 August to clarify that claimants that became partners during 2020/21 should work out their share of…

Tax-free childcare and summer activities

Monday, August 2, 2021

HMRC has issued a reminder to working parents that Tax-Free childcare (TFC), the scheme the government phased in between 2017 and 2018, is not just for "traditional" childcare costs, such as regular hours after school during term time. It’s also possible to use the account to pay for things like accredited clubs or sports activities over the summer.

TFC is available for children aged up to 11 generally and takes the form of a top-up scheme – parents pay into the account and HMRC tops it up…

Invalid VAT invoices

Monday, August 2, 2021

One of the fundamental requirements for re-claiming input tax on a VAT return is the need to have a valid VAT invoice. A valid invoice must include certain requisite information, such details of the goods or services procured, the VAT registration number of the supplier, their address, and show the amount of VAT on a separate line to the cost of the expense.

HMRC routinely carry out VAT inspections for compliance purposes. If they find invoices that don’t meet these requirements there will be classed as invalid…

Investors’ relief – the forgotten CGT break?

Monday, August 2, 2021

Investors’ Relief (IR) was introduced in April 2016 to complement what was then called entrepreneurs’ relief. IR is intended to encourage outside investment into smaller entrepreneurial companies by those investors who may not wish to get involved with the day-to-day running of the business. Entrepreneurs’ relief, now called Business Asset Disposal Relief (BADR), requires the shareholder to be a director or employee of the issuing company. In contrast, IR prohibits the shareholder from being a "relevant employee " (with some exceptions) during the minimum shareholding period – referred…

Latest news round up

Monday, August 2, 2021

COVID-19

From 1 August the government contribution will fall to 60%, meaning the employer will need to pay 20% to ensure the employee receives their entitlement of 80% (subject to a £2,400 per month). This will remain in place until the end of September when the scheme is set to close.

HMRC published new guidance for those who have received SEISS grant payments last month. The guidance covers situations where the SEISS income may not have been correctly reported on the self-assessment return. The income…

VAT registration – delays

Thursday, July 1, 2021

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…

Property CGT – avoid reporting traps

Thursday, July 1, 2021

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…

P11Ds for 2020/21 – COVID19 considerations

Thursday, July 1, 2021

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…

Latest news round up

Thursday, July 1, 2021

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…

VAT group registration

Wednesday, June 2, 2021

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…