On 12 April, the rules that government has required us to follow to combat COVID-19, changed. From that date: non-essential retail will be able to reopen personal care premises such as hairdressers and nail salons will be able to reopen public buildings such as libraries and community centres will be able to reopen outdoor hospitality venues will be able to reopen, with table service...
Muras Matters: Bonus vs Dividend
Background For those shareholders who are also directors or employees of a company it is often a consideration as to whether any additional remuneration is more tax efficiently paid as a bonus or as a dividend. This involves considering the tax cost to the company as well as the individual. Over the last few years the general principle, subject to a shareholders...
Tax Diary April/May 2021
1 April 2021 - Due date for Corporation Tax due for the year ended 30 June 2020. 19 April 2021 - PAYE and NIC deductions due for month ended 5 April 2021. (If you pay your tax electronically the due date is 22 April 2021) 19 April 2021 - Filing deadline for the CIS300 monthly return for the month ended 5 April...
Challenges for 2021-22
The new tax year starts 6 April 2021, and without dwelling too much on the historical trickery that has landed us with this odd commencement date, what are the challenges we will need to grapple with in the coming year? Keeping clear of COVID Pretty obvious really, no-one would willingly risk a dose of COVID-19 and its variants. Unfortunately, to achieve this,...
New National Minimum Wage rates apply from 1 April 2021
Employers who have employees paid at the National Living Wage (NLW) or National Minimum Wage (NMW) rates should be applying new rates of pay from 1 April 2021. In full, the increases from April 1, 2021 are: NLW (23 ) has increased 2.2%, from £8.72 to £8.91 NMW (21-22) has increased 2%, from £8.20 to £8.36 NMW (18-20) has increased 1.7% from £6.45 to...
Temporary extension of loss relief carry-backs
Many businesses across the UK are likely to make losses in the 2020-21 tax year due to the havoc resulting from COVID disruption. Which was why the announcement in the recent Budget that losses can be carried back for an extended period was most welcome. The policy objective aims to provide a cashflow benefit to affected businesses by providing additional relief for...
Recently self-employed?
If you became self-employed after 5 April 2019 and you have submitted your 2019-20 tax return before 2 March 2021, you may be eligible for the next two Self-Employed Income Support Scheme (SEISS) grants for the quarter end 30 April 2021 and the final claims period to 30 September 2021. HMRC has announced that they are adding a new layer of...
Furlough scheme changes from 1 July 2021
The government has confirmed its intention that furloughed employees will be paid 80% of their wages for hours not worked under the furlough scheme. Up to 30 June 2021, this payment will be fully-funded by government and capped at £2,500 per month. From 1 July 2021, employers are required to contribute 10% of the 80% (capped at £312.50 per month) government contributing...
Small Business Brexit Support Fund
Since 15 March 2021, smaller businesses can apply for grants of up to £2,000 to help them adapt to new customs and tax rules when trading with the EU. The £20 million SME Brexit Support Fund enables traders to access practical support, including training for new customs, rules of origin and VAT processes. Small and medium sized businesses that trade solely with...
Super-deductions, what are they?
Perhaps the most innovative give-away in the recent budget was “Super-deductions for investment expenditure”. What does this mean? Companies that invest in qualifying plant and machinery in the period from 1 April 2021 to 31 March 2023 will benefit from enhanced capital allowances. Investments in assets that qualify for the main rate of capital allowances of 18% will benefit from a 130%...