Repay private petrol and save tax

At first sight, company cars drivers whose private fuel costs are met by their employers may seem to be onto a good thing, but there is a nasty tax hit… Enter, the Car Fuel Benefit charge. When the current tax year ends, 5 April 2021, the illustration below demonstrates how a cash payment to an employer to payback any private fuel provided...

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Tax Diary February/March 2021

1 February 2021 - Due date for Corporation Tax payable for the year ended 30 April 2020. 19 February 2021 - PAYE and NIC deductions due for month ended 5 February 2021. (If you pay your tax electronically the due date is 22 February 2021) 19 February 2021 - Filing deadline for the CIS300 monthly return for the month ended 5 February...

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Reminder of CIS VAT changes

Contractors and subcontractors registered for VAT and the Construction Industry Scheme will need to use the VAT reverse charge process for building and construction services from 1 March 2021. VAT registered subcontractors affected by this change will no longer add VAT to their invoices to contractors. Instead, the contractors’ accounting system will need to add the deemed VAT to their VAT...

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Business relief for Inheritance Tax

It is possible that your estate will pay no IHT on the valuation of any business assets. The amount of relief available depends on the type of assets held at death. Your estate may be able to claim 50% or possibly 100% relief. You can get 100% Business Relief on: a business or interest in a business, shares in an unlisted company. You can...

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Do you continue to trade with the EU?

Government have set out a list of six actions that all businesses who continue to trade with EU customers or suppliers should complete now that the formal transition has ended.. The list is: Goods - if you import or export goods to the EU, you must get an EORI number, make customs declarations or employ an agent to do them for you,...

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Muras Matters: Self-Assessment Filing Deadline Extension

Background In our last bulletin of 18th January, we explained that HMRC would not be extending the filing deadline for 2019/20 Self-Assessment Tax Returns (31st January 2021) despite the ongoing difficulties taxpayers and accountants are facing relating to the coronavirus pandemic. Detail HMRC has today announced that they have changed their stance on this and they have now advised that taxpayers will not...

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Private residence, court actions available on separation or divorce

Couples may have experienced the difficulties that can arise when couples separate or divorce. One area where they may need to resolve are the options that courts have to direct ownership of the marital home. The courts can exercise their jurisdiction in the following ways. By recognising an existing equitable interest of the spouse or civil partner who does not have...

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Consider online tax payment plans

January is the month that taxpayers registered for self-assessment need to pay their taxes. Usually, this amounts to any underpayment for the previous tax year and a first payment on account for the current tax year. Unfortunately, HMRC will base their payment on account for 2020-21 on the self-assessment liability for the previous tax year, 2019-20. As may traders have experienced...

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Muras Matters: 31 January Deadline

The Self Assessment Tax Return deadline for the year ended 5 April 2020 is fast approaching and HM Revenue & Customs (HMRC) have confirmed that despite the current coronavirus pandemic there will be no extension to this year’s deadline. Returns must be submitted online by midnight on 31 January 2021 to avoid penalties being charged. As the 31st falls on a...

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Why go digital?

There is a major advantage to recording business transactions digitally; once the basic data has been entered it can be interrogated and represented in endless types of reports. During the present COVID disruption this ability to drill down or summarise data should be used to support business owners in making appropriate decisions. Accounting software, used effectively, will provide you with information...

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