Concerned about tax payments due 31 January 2021?

UK taxpayers that file a tax return will need to pay a variety of self-assessment tax and NIC liabilities that will fall due at the end of January 2021. They include:   · The second payment on account for 2019-20 if deferred when first due 31 July 2020. · Any balance of taxes unpaid for 2019-20 · The first payment on account for 2020-21 The...

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Parting shot from the Chancellor

For a man that has admitted he has concerns about the level of government funding committed to the support of businesses during the last nine months, Rishi Sunak’s disclosure last week that he is extending the furlough scheme to the end of April 2021 points to a deepening concern in government that we are not out of the woods just...

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Looks like we are heading for a no-deal exit from the EU

If the following criteria apply, this is what our government recommend that you do from 1 January 2021: You: Are British Live and work in the UK Travel to the EU for business reasons Have no plans in the short-term to travel abroad for holidays Do not plan to move to the EU Run and/or own a business in the UK Do not employ EU citizens in your...

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Accounting for import VAT on your VAT return

From 1 January 2021, if your business is registered for VAT in the UK, you will need to consider how to treat VAT added to imports from the EU. Accounting for import VAT on your VAT Return means you will declare and recover import VAT on the same VAT Return, rather than having to pay it upfront and recover it later. The...

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Muras Matters: Payment of VAT Deferred Due To Coronavirus (COVID-19)

Background As part of the Government’s Coronavirus support package businesses were able to defer their VAT liabilities between 20 March and 30 June 2020 until March 2021. In September, it was announced that further breathing space would be available through the New Payment Scheme, which will provide the option to pay the deferred VAT in smaller instalments. Rather than paying a...

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Possible crackdown on unfair employment clauses

The following update is copied from a government press release recently issued by the Department for Business, Energy & Industrial Strategy. New proposed measures to allow workers’ greater freedom to find new or additional work were unveiled by Business Secretary Alok Sharma 4 December 2020. In a major win for the UK’s lowest paid workers, the government will consult on banning the...

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What have we learnt from 2020?

To answer this question, we should take a look at a few adjectives that have been used to describe COVID-19’s effects on our personal and business lives. For example, unexpected, unprecedented, disruptive… Prior to the pandemic we assumed that tomorrow would turn out much like yesterday. Many businesses had become accustomed to managing cash flow on the assumption that next month’s...

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Muras Matters: Capital Allowances: Annual Investment Allowance Extension

The Annual Investment Allowance (“AIA”) for capital expenditure had been due to revert to £200,000 per annum on 1 January 2021 following a two-year period of being temporarily increased to £1 million p.a for all types of business. The government has however recently announced an early Christmas present for businesses with the news that the AIA limit of £1 million...

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Summary of spending review 2021-22

A summary of the business elements of the recent Spending Review for next year are set out below: Continuing the UK’s recovery from coronavirus The Spending Review has set out the government’s intention to maintain support to protect jobs, businesses and livelihoods, while stimulating the UK’s economic recovery. In the Spending Review the government has committed to invest: an additional £733 million in the...

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Self-Assessment filing deadline draws near

If you have still not submitted all of the information we need to complete your 2019-20 tax return, could we ask you to respond as soon as you can as the deadline is fast approaching – 31 January 2021. HMRC has made no announcement that this deadline will be extended. Accordingly, the initial £100 late filing penalty will apply to any...

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