Tax Diary March/April 202125/02/2021
1 March 2021 - Due date for Corporation Tax due for the year ended 31 May 2020.
2 March 2021 - Self-assessment tax for 2019/20 paid after this date will incur a 5% surcharge.
19 March 2021 - PAYE and NIC deductions due for month ended 5 March 2021. (If you pay your tax electronically the due date is 22 March 2021)
19 March 2021 -...More...
Claiming Self-Employed Income Support Scheme grants25/02/2021
Under the third Self-Employed Income Support Scheme (SEISS) grant, claimants received up to 80% of average trading profits for November and December 2020, and January 2021. This meant that a maximum grant for the three months of £7,500 was made available to those who met the eligibility requirements. The claim window for this grant has...More...
Inheritance Tax - tax-free gifts25/02/2021
We wanted to remind our readers of the Inheritance Tax (IHT) implications of making cash gifts during the current tax 2020-21 tax year that ends on 5 April 2021.
You can give away up to £3,000 worth of gifts each tax year. This is known as your annual exemption. Any unused part of the annual exemption can be carried forward, but only for...More...
Capital Gains Tax exemptions25/02/2021
As with Income Tax personal allowances, taxpayers have an annual exempt amount for Capital Gains Tax (CGT) which is forfeited if not used. The annual exemption for individuals in 2020-21 is £12,300. A husband and wife each have a separate exemption. This also applies to civil partners who are treated in the same way as married couples for...More...
Government to publish range of tax consultations25/02/2021
In a recent HM Treasury press release it has been confirmed that the government will publish a number of tax-related consultations and calls for evidence at the end of March. These consultations would usually be published on Budget day but instead will be published on 23 March. This will allow more time for these consultations to be...More...
VAT Agricultural Flat Rate Scheme25/02/2021
Businesses that use the flat rate scheme pay VAT as a fixed percentage of their VAT inclusive turnover. The VAT Agricultural Flat Rate Scheme is a variant of the flat rate scheme specifically designed for farmers and other activities relating to agricultural production (such as horticulture).
Farmers cannot join this scheme if the value...More...
Outcome of the Uber case25/02/2021
The Supreme Court has handed down a landmark judgement in the Uber case. The Supreme Court unanimously upheld the decisions of earlier courts and has found that Uber drivers are ‘workers’ and not self-employed as Uber has tried to argue.
The decision of the Supreme Court as the final court of appeal in the UK marks the end of the case...More...
Emerging from lockdown23/02/2021
The Prime Minister has set out the government’s objectives for easing lockdown restrictions.
If the planned opening of schools, social interactions and businesses is achieved without significant increases in infection, after 21st June 2021, there will be no legal limits on social contact. Which means, all businesses including hospitality...More...
What is overtrading?23/02/2021
A reminder that traders who buy and sell goods - wholesalers or retailers - need to be wary of the financial consequences if, as expected, pent up consumer activity leads to a surge in demand for your products from July 2021 or earlier if you can trade before 21st June 2021.
What is overtrading?
Let’s assume that the past year’s...More...
Marriage Allowance tax break18/02/2021
If you are entitled to the marriage allowance and have not yet applied, then you could receive a payment of up to £1,188 from HMRC. HMRC used the occasion of Valentine’s Day to remind couples to make a claim.
The marriage allowance is available to qualifying married couples and those in a civil partnership where a spouse or civil partner...More...
Added protection for pension savers18/02/2021
The new Pensions Scheme Act received Royal Assent on 11 February 2021. The Act covers a number of important pensions-related issues and has faced a long journey through parliament, starting in October 2019, that included delays due to both Brexit and the coronavirus pandemic.
The Act has been described by government as ‘the biggest...More...
Simplified export declarations 18/02/2021
Following the end of the Brexit transition period, businesses need to make customs declarations when exporting goods to the EU as well as to the rest of the world. Businesses can make customs declarations themselves or hire a third party such as a courier, freight forwarder or customs agent.
Businesses can use simplified export...More...
Guidance for paying deferred VAT updated18/02/2021
The coronavirus VAT payment holiday gave businesses the chance to defer the payment of any VAT liabilities between 20 March 2020 and 30 June 2020. The option for businesses to defer their VAT payments ended on 30 June 2020.
There are two options available for repaying this VAT.
The first option is to pay the deferred VAT in full on or...More...
Tax breaks working from home18/02/2021
Employees who are working from home may be able to claim tax relief for any additional costs due to home working. No tax relief will be due if employers reimburse employees for the additional household expenses incurred.
The tax relief covers expenses such as business telephone calls or heating and lighting costs. Expenses that are for...More...
Buying equipment for your job18/02/2021
Employees who need to buy substantial equipment to use as part of their employment may be able to claim tax relief. In most cases they can claim relief based on the full cost as it usually qualifies for a type of capital allowance called the Annual Investment Allowance. Any tax relief would be reduced if the employer provides a...More...
How much do your customers owe you?17/02/2021
Many business owners are buoyed by turnover; if it’s sold it’s as good as money in the bank, but is it?
What are your credit terms? How many days do you allow your customers to keep your money before insisting they pay you?
30 days is probably the most widely used credit term, which in real terms probably means customers pay after 40,...More...
Financial outcomes for your business17/02/2021
There are three possible financial outcomes for your business, each with their own challenges:
Make a profit
Make a loss
Making a profit
Clearly, this will be your goal. If you make profits - and taxation will never eat up all your profits - this will generate cash resources that can be accumulated in the business or...More...
Why keeping adequate accounting records is important11/02/2021
A recent investigation by the Insolvency Service resulted in the sole director of a Leicester clothing manufacturer being jailed for six months after failing to provide adequate company accounting records.
The investigation found that the defendant had not kept adequate accounting records which meant the liquidator could not ascertain...More...