Archives for 2021

If you are new to the import process the following check list will provide you with a rough guide to what you need to do:
• You need an EORI number that starts with GB to import goods into England, Wales or Scotland. You will need a new one if you have an EORI that does not start with GB.
• The business sending you the goods may need to make an export declaration in their country or secure licences or certificates to send goods to the UK.
• You can hire someone to deal with customs and transport the goods for you, or you can do it yourself. Most businesses that import goods use a transporter or customs agent.
• If the UK has a trade agreement with the country you are importing from, you may be able to pay less duty or no duty on the goods (known as a ‘preferential rate’).
• If you have appointed someone to deal with UK customs for you, they will make the declaration and get your goods through the UK border.
Unless you have experience dealing with cross-border transactions appointing a customs agent or similar organisation would seem to be a sensible option unless the value and frequency of imports is unlikely to be significant.
More detailed information is available free of charge on the GOV.UK website.

Next month, as you will see from the Tax Diary notes for July, employers that provide any form of taxable benefit to clients will need to prepare and file P11D returns to HMRC. The deadline to file is 6 July 2021.
You will also need to provide employees affected with a copy of their P11D form by the same date. They will need this to check their tax account or to include on their tax return.
Unfortunately, there is one further chore to complete this annual process.
Employers are obliged to pay employers’ National Insurance contributions on the aggregate value of benefits provided to all employees. The way to do this is to complete a P11D(b) return; and again, this needs to be filed by 6 July 2021. NIC class 1A contributions are payable at 13.8% of the total benefits returned and are payable by 22 July 2021 if paid electronically or by 19 July 2021 if you pay by cheque.
If we prepare your payroll, we may undertake this work for you.
If not, do not miss the filing and payment deadlines otherwise you may trigger late filing penalties and interest charges.
Any Class 1A NIC paid is an allowable deduction for tax purposes.

There are still a significant number of UK employees that are furloughed. Unfortunately, this scheme is scheduled to end 30 September 2021.
Businesses that are struggling to re-establish themselves following the downside effects of repeated lockdown, may be faced with difficult decisions as this deadline approaches. The pundits are expecting a significant rise in the unemployment numbers.
If you have concerns that you may be faced with laying off furloughed staff when the Coronavirus Job Retention Scheme closes, and are unsure how to plan for any changes, we can help.
The key is to create a forecast of business activity – based on current estimates – that highlights profitability, solvency and cash flow. Armed with this information, it will then be possible to try out different what-if scenarios and consider the options this process opens.
It is better to plan for these changes before they happen than to react when the changes have occurred.

1 May 2021 – Due date for Corporation Tax due for the year ended 30 July 2020. 19 May 2021 – PAYE and NIC deductions due for month ended 5 May 2021. (If you pay your tax electronically the due date is 22 May 2021). 19 May 2021 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2021. 19 May 2021 – CIS tax deducted for the month ended 5 May 2021 is payable by today. 31 May 2021 – Ensure all employees have been given their P60s for the 2020-21 tax year. 1 June 2021 – Due date for Corporation Tax due for the year ended 31 August 2020. 19 June 2021 – PAYE and NIC deductions due for month ended 5 June 2021. (If you pay your tax electronically the due date is 22 June 2021) 19 June 2021 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2021. 19 June 2021 – CIS tax deducted for the month ended 5 June 2021 is payable by today.

One or more charities can set up a subsidiary trading company to trade on their behalf. This may be a useful strategy if your charity: makes profits on trading that is not linked to its primary purpose makes a profit that comes close to or is higher than the small trading tax exemption limit wants to protect its assets from any trading losses wants to have a separate organisation to carry out all its trading activities VAT considerations A charity’s trading company will not have to pay VAT on: profits it makes from donated good sales (as long as it gives these profits to the parent charity) fundraising events it runs for its parent charity Other types of VAT relief that charities get are not available for their trading subsidiaries. Trading companies must pay tax and VAT on all their other income and profits in the same way as ordinary limited companies.

The advisory electricity rate for fully electric cars is 4 pence per mile. Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates. The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables. From 1 March 2021 You can use the previous rates for up to 1 month from the date the new rates apply. Engine size Petrol – rate per mile LPG – rate per mile 1400cc or less 10 pence 7 pence 1401cc to 2000cc 12 pence 8 pence Over 2000cc 18 pence 12 pence   Engine size Diesel – rate per mile 1600cc or less 9 pence 1601cc to 2000cc 11 pence Over 2000cc 12 pence

A special relief is available for creators of literary or artistic works under which they can claim to add together their profits for 2 years and be taxable on the average of those profits if certain conditions are met. This helps to even out fluctuating tax charges for creative persons who may pay little tax one year but perhaps higher rates of Income Tax the following year. The averaging process may help to reduce overall liabilities. You can claim averaging if your profits come from disposing of works or from royalties you get for allowing people to reproduce your works. So, for example, you can claim if you are: an author whose income comes from the sale of your written work – even if a small part of your income comes from personal appearances a computer software writer whose income comes from royalties for reproducing the code you write, which is protected by copyright You cannot claim averaging if your profits come from the services you provide. So, for example, you cannot claim if you’re: an architect whose income comes mainly from your services – even if some of your income comes from selling material protected by copyright a computer programmer whose income comes from the service of writing scripts or programs, not the actual works

A new Recovery Loan Scheme was launched 6 April 2021, to provide much needed liquidity to businesses affected by COVID lockdown measures. Under the scheme, loans of up to £10m are available. The minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts. Potentially, these loans will be attractive to businesses in retail and hospitality that are gradually being allowed to reopen. As with the Bounce-Back Loans, the government is providing lenders – the high street banks – with a measure of guarantee to underwrite their risks. In a recent press release government confirmed: The scheme, which was announced at budget and runs until 31 December 2021, will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders. 26 lenders have already been accredited for day one of the scheme, with more to come shortly, and the government will provide an 80% guarantee for all loans. Interest rates have been capped at 14.99% and are expected to be much lower than that in the vast majority of cases, and Ministers are urging lenders to ensure they keep rates down to help protect jobs.  The Recovery Loan Scheme can be used as an additional loan on top of support received from the emergency schemes – such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme – put into place last year. Business owners who are considering a recovery loan should apply the usual considerations. i.e., can they afford the interest and capital repayments. Please call if you would like help considering your options.

 

1 April 2021 – Due date for Corporation Tax due for the year ended 30 June 2020.

19 April 2021 – PAYE and NIC deductions due for month ended 5 April 2021. (If you pay your tax electronically the due date is 22 April 2021)

19 April 2021 – Filing deadline for the CIS300 monthly return for the month ended 5 April 2021.

19 April 2021 – CIS tax deducted for the month ended 5 April 2021 is payable by today.

30 April 2021 – 2019-20 tax returns filed after this date will be subject to an additional £10 per day late filing penalty.

1 May 2021 – Due date for Corporation Tax due for the year ended 30 July 2020.

19 May 2021 – PAYE and NIC deductions due for month ended 5 May 2021. (If you pay your tax electronically the due date is 22 May 2021).

19 May 2021 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2021.

19 May 2021 – CIS tax deducted for the month ended 5 May 2021 is payable by today.

31 May 2021 – Ensure all employees have been given their P60s for the 2020-21 tax year.

The government has confirmed its intention that furloughed employees will be paid 80% of their wages for hours not worked under the furlough scheme. Up to 30 June 2021, this payment will be fully-funded by government and capped at £2,500 per month.

From 1 July 2021, employers are required to contribute 10% of the 80% (capped at £312.50 per month) government contributing 70% of the 80% (capped at £2,187.50 per month).

From 1 August 2021, until the scheme is due to end 30 September 2021, employer contributions rise to 20% of the 80% (capped at £625 per month) government contributing 60% of the 80% (capped at £1,875 per month).

Readers are reminded that one of the conditions to apply for this support is that you can demonstrate that your business continues to be adversely affected by COVID disruption.

Throughout this period, employers are fully responsible for payment of any hours worked.