It is doubtful that HMRC will change the tax year end date. The current tax year will therefore come to an end on 5 April 2021. Which means that tax-payers still have two months (February and March 2021) to take advantage of any tax planning strategies that may advantage their tax liabilities for 2020-21. As COVID disruption is likely to take most...
Tax office moves the penalty spot
During the last week of January, HMRC finally accepted that many tax-payers would not make the filing deadline – 31 January 2021 – for their 2019-20 self-assessment tax return; due, in the main, to continuing COVID disruption. As a gesture, they have confirmed that: Self-Assessment tax-payers who cannot file their tax return by the 31 January 2021 deadline will not receive a...
Muras Matters: VAT Reverse Charge for Building And Construction Services Reminder
Background New VAT rules were originally due to be introduced for construction services with effect from 1 October 2019, although this commencement date was then postponed for 12 months until 1 October 2020. However, due to the coronavirus pandemic the start date was again postponed and is now due to come into effect on 1 March 2021. With effect from 1 March...
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...
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,...