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...
Online payment plans
Almost 25,000 Self-Assessment customers have set up an online payment plan to manage their tax liabilities in up to 12 monthly instalments, totalling £69.1 million, HMRC revealed recently. In October, HMRC increased the threshold for self-serve Time to Pay arrangements from £10,000 to £30,000 for Self-Assessment taxpayers. Once they have completed their 2019-20 tax return and know how much tax they...
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...
Did you defer VAT payments last year?
If you took advantage of the offer to defer VAT payments falling due between 20 March 2020 and 30 June 2020 – to help out with the impact of COVID disruption – your now have three choices. You can: pay the deferred VAT in full on or before 31 March 2021 opt in to the VAT deferral new payment scheme when it...
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...
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...
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,...
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...
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...
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...