Thank Crunchie Its Friday
The last two weeks have flown by and I have been jotting down ideas of things to put in my catch-up email. It seems that there is so much happening in the world of tax and accounting aside from furlough, SEISS, CBILS & BBL’s, Time to pay etc.
With much anticipation we will listen to The Chancellor on 3 March. Rishi is likely to outline how he intends to repay the biggest borrowing position since WWII.
There is much talk in the press about increased taxes on fuel, companies, individuals, however, it is also very likely that he will address the fragility of the economy and outline any further financial assistance.
Capital Gains Tax
From my reading, it would appear certain that this tax, which is purely on the disposal of certain assets, is in the firing line. Business Asset Disposal Relief (or Entrepreneurs Reliefs as was) is likely to be hit further or taken away altogether. Whether it is this time round or next we shall only have to wait and see.
Auto Enrolment Pensions
Whilst we have been through a very difficult year, the Pension Regulator has been reminding employers that the third anniversary of auto-enrolment has been landing. This is significant in that employees that may have opted out need to be auto-enrolled again.
Making Tax Digital (MTD)
Originally scheduled for introduction for landlords and the self-employed in April 2021, this has now been postponed until April 2023. Getting ready for MTD still needs to be thought through. If you are a sole trader or partner in business or you have property rental income, then please visit this site:
At Mostons we are looking at low cost digital solutions for our clients. Please get in touch if this is of interest to you.
Construction Industry & VAT
From April 2021 CIS contractors will now account for VAT very differently. If you are a subcontractor working for a main contractor then there are strict new rules about how to invoice without VAT.
This will impact many small businesses and their cash flow. Main contractors will be most exposed and will have to take care in getting this right.
VAT deferred from Spring 2020
The VAT deferred from last year, becomes due at the end of March. You now have two options:
- pay in full on or before 31 March 2021
- opt in to a new scheme that allows you to pay by instalments, until January 2022.
To pay in instalments using the new payment scheme
The new scheme will allow you to pay your deferred VAT in up to 11 regular monthly instalments, interest free, beginning in March 2021.
The scheme is not available to use yet, but you can find more about how it works, and get ready to use it, by going to GOV.UK and searching ‘deferred VAT’.
Furlough Fraud and Error
HMRC are clearly turning their focus on recovering furlough claims that have been made outside the spirit in which it was intended. In an unprecedented step, HMRC recently published a list of all 750,000 employers that took advantage of the scheme. There is a hotline for disgruntled employees to report their employers and we are seeing increased volumes in HMRC enquiries.
I’m looking forward to a few days rest over half-term and to continue work on my Millennium Falcon. Have a lovely weekend and please stay safe and well.