News

Tax Diary March/April 2021
24/02/2021 - More...
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 -

Claiming Self-Employed Income Support Scheme grants
24/02/2021 - More...
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

Inheritance Tax - tax-free gifts
24/02/2021 - More...
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

Capital Gains Tax exemptions
24/02/2021 - More...
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

Government to publish range of tax consultations
24/02/2021 - More...
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

VAT Agricultural Flat Rate Scheme
24/02/2021 - More...
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

Outcome of the Uber case
24/02/2021 - More...
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

Emerging from lockdown
22/02/2021 - More...
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

What is overtrading?
22/02/2021 - More...
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

Marriage Allowance tax break
17/02/2021 - More...
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

Added protection for pension savers
17/02/2021 - More...
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

Simplified export declarations
17/02/2021 - More...
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

Guidance for paying deferred VAT updated
17/02/2021 - More...
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

Tax breaks working from home
17/02/2021 - More...
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

Buying equipment for your job
17/02/2021 - More...
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

How much do your customers owe you?
16/02/2021 - More...
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,

Financial outcomes for your business
16/02/2021 - More...
There are three possible financial outcomes for your business, each with their own challenges: Make a profit Breakeven, or 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

Why keeping adequate accounting records is important
10/02/2021 - More...
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

Accounting for import VAT on your VAT return
10/02/2021 - More...
Following the end of the transition period, businesses registered for VAT can account for import VAT on their VAT return, often referred to as postponed VAT accounting. For most businesses, this means that they will declare and recover import VAT on the same VAT return. The normal VAT recovery rules that define what VAT can be reclaimed

Self-Employment Income Support Scheme
10/02/2021 - More...
Claims for the third Self-Employed Income Support Scheme (SEISS) grant closed on 29 January 2021. Under this grant, the self-employed 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

Bounce Back Loans scheme changes
10/02/2021 - More...
The Bounce Back Loans scheme was launched in May 2020 to provide financial support to businesses across the UK that were losing revenue and disrupted cashflow as a result of the COVID-19 pandemic. The scheme allows qualifying small businesses to borrow between £2,000 and £50,000 with no fees or interest to pay for the first 12 months. In

VAT and overseas goods sold to customers in the UK
10/02/2021 - More...
Following the end of the Brexit transition period, new rules on tax and duty now apply on goods sent to the UK from overseas. These changes are meant to ensure that goods from EU and non-EU countries are treated in the same way and that UK businesses are not disadvantaged by competition from VAT free imports. For goods sold directly to

Present criteria for claiming via the furlough scheme
10/02/2021 - More...
The detailed Furlough Scheme rules were last updated 4 February 2021. People who are unable to work can receive up to 80% of their wages. This payment is subject to a monthly maximum amount of £2,500 per employee (for hours not worked). Employers have the discretion to top-up the payments if they so wish. To use the extended scheme - to

Can we supply the coming consumer bounce-back?
08/02/2021 - More...
Will the Government’s endeavours to nail the COVID virus with the vaccine roll-out have the desired effect of opening up the UK economy, the easing of lock-down and a gradual return to “normality”? Fingers crossed… One thing is for sure, when the pubs can open, when we can start to book a holiday and when High Street

Contact Us

Foster Knight

DC Business centre
10 Charles Wood Road
Rashes Green Industrial Estate
Dereham
Norfolk
NR19 1SX
 
Tel:01362 851718

Membership

 

Search News


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

Follow Us