By Katie Making Tax Digital • Tax Advice • Tax News 0 Comments

Making tax digital now extended to more businesses

Currently only VAT registered businesses making taxable supplies in excess of the £85,000 VAT registration threshold are mandated to comply with Making Tax Digital (MTD) rules. Those rules require the business to keep digital business records and send VAT returns using MTD-compatible software.

MTD for VAT is now being rolled out to all VAT registered businesses from April 2022 which may cause some traders who are VAT registered but below the threshold to consider deregistering to avoid having to comply with MTD for VAT. If you decide to do so you will need to complete Form VAT7 and account for output VAT on the market value of stock and assets still owned at the date of deregistration. This is where input VAT has been reclaimed on those assets.

There is however a £1,000 de-minimis which means that output VAT does not need to be accounted for where the combined market value of the assets is less than £6,000.

Unfortunately, deregistering for VAT will not necessarily sidestep MTD as the requirement to keep business records digitally will be introduced for income tax from April 2023. From then MTD for income tax will apply to businesses with gross income in excess of £10,000 a year which will include property landlords as well as traders and professionals.

Need more information?

Do you need more support  with the Making Tax Digital (MTD) rules.

We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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    By Katie Business Advice • Business News • Tax Advice 0 Comments

    Self-Employed Income Support Scheme (SEISS) extension

    Like the CJRS scheme for employers the Self-Employed Income Support Scheme (SEISS) has been extended to September 2021and details of claims for the fourth grant have now been released. This fourth grant covers February, March and April 2021. There will then be a fifth grant covering May to September 2021.

    The latest grant allows the self-employed to claim 80% of their average profits for the period up to 2019/20, and is again limited to £2,500 a month.

    Like CJRS there are lots of conditions that need to be satisfied such as being self-employed in 2019/20 and continuing to trade in 2020/21 or would be doing so if it the business had not been impacted by coronavirus.

    In order to be able to make a successful claim the self-employed profits in 2019/20 must not exceed £50,000 and must be more than 50% of the individual’s total income. If that test is not met, then the same £50,000 and 50% tests are applied to average profits and total income over the four years (or shorter period) to 5 April 2020. This means that those who commenced trading in 2019/20 will now potentially be eligible for SEISS grants, having not previously qualified for the first three grants.

    Although we cannot make the claim on your behalf we can help you determine whether you are eligible and assist you with your claim if required.

    Conditions for the fifth grant will be linked to a reduction in business turnover.

    Self-employed individuals whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850. We are still awaiting further details of the fifth grant calculation.

    Need more information?

    Do you need support with the Self-Employed Income Support Scheme (SEISS) extension?

    We offer a wide range of services which are unique to your self-employed businesses. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

    Our fantastic team at A&C Chartered Accountants are here to help.

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      By Katie Business Advice • Business News • Tax News 0 Comments

      The fourth version of the CJRS “furlough” grant scheme

      The fourth version of the CJRS “furlough” grant scheme starts on 1 May 2021 and will run until 30 September with employees affected continuing to be supported such that they are entitled to be paid at least 80% of their “usual pay” subject to a limit of £2,500 a month for hours not worked. The government, via HMRC, will continue to provide support up to this 80% figure for the months of May and June. The government support then reduces to 70% for July and the 60% for August and September with the employer being required to make up the difference. The employer is also required to pay national insurance contributions and pension contributions on the full amount paid to the employee.

      Eligibility from 1 May 2021

      In order to be included in a CJRS “furlough” grant claim for periods after 1 May 2021 an employee must have been on the payroll and subject to an RTI (real time information) submission between 20 March 2020 and 2 March 2021.

      The claim calculation continues to be complex with care required to compute the employee’s “usual pay” and “usual hours” particularly where the hours and pay varies. Furloughed hours for the grant claim continues to be the difference between the employee’s usual hours and hours worked in the claim period.

      “Usual pay”

      In order to qualify for the first and second CJRS “furlough” support grants an employee needed to be included in an RTI submission for 2019/20 by 19 March to be included. If that employee continues to be employed their “usual pay” for the next version of CJRS continues to be that same amount, even where they have had a pay rise.

      Those who failed the original eligibility test but were on the payroll and subject to an RTI submission before 30 October 2020 were eligible for the third version of furlough that started on 1 November 2020. If that employee continues for to be employed their “usual pay” for the next version of CJRS continues to be that same amount, again even where they have had a pay rise.

      For employees on fixed pay who were first reported through RTI between 31 October 2020 and 2 March 2021 the “usual pay” is based on the last pay period ending on or before 2 March 2021. For those on variable pay calculate 80% of the average wages payable between 6 April 2020 (or, if later, the date the employment started) and the date before they were first furloughed on or after 1 May 2021

      The grant calculations don’t get any simpler!  If we can be of assistance in helping you with your claims please get in touch.

      Note that HMRC may impose penalties on employers that have overclaimed, even for careless errors.

      Need more information?

      Do you need more guidance on the fourth version of the CJRS “furlough” grant scheme?

      We offer a wide range of services which are unique to your business and have helped all of our clients navigate the Coronavirus pandemic. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

      Our fantastic team at A&C Chartered Accountants are here to help.

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        By Katie Business Advice 0 Comments

        Using Shopify for your business

        If you want to start selling your products or services online, Shopify provides the perfect platform to do so.

        Shopify is an e-commerce platform that provides businesses with the tools to create an online store. It is an incredibly popular platform and is used by over 1 million businesses worldwide.

        Shopify provides a lot of flexibility in terms of products and services that you can sell – it allows digital as well as physical products to be sold on the platform.

        The Shopify platform offers lots of useful tools and features. The online checkout page is customisable – you can add your company logo, colours and fonts so that everything fits with your firm’s branding. The system also supports international shipping functionality, if needed.

        Shopify is a hosted solution, which means it runs on its own servers. Users don’t have to buy web hosting or install software. Businesses using Shopify pay a monthly fee to use the platform. As long as you have access to the internet you can manage your online store from anywhere.

        Shopify offers a range of subscription packages for different sizes of business. Businesses can start off with a free 14-day trial to test the platform. In order to start selling products or services you need to sign up to a monthly plan. Basic Shopify starts at £23.48 per month. Users can have unlimited products, abandoned cart recovery and various other features. Upgrading to the Shopify package costs £63.95 per month and includes additional features such as reports, analytics and up to five staff accounts.

         

        Finally, the Advanced package costs £242.04 per month and includes more advanced reporting, calculated shipping rates and more.

        In addition to the monthly subscription fee, Shopify charges for any payment made through any payment provider other than Shopify Payments. The charges range from 2% on the Basic plan to 0.5% if you are on the Advanced plan. That said, Shopify Payments accepts most major payment methods so it is difficult to see why you would need to use another payment provider.

        Need more information?

        Do you use Shopify for your business? We offer a wide range of services which are unique to online businesses. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

        Our fantastic team at A&C Chartered Accountants are here to help.

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          By Katie Tax Advice • Tax News 0 Comments

          Dairy of main tax events April/May 2021

          Dairy of main tax events April/May 2021

           

          Date What’s Due
          1/04 Corporation tax payment for year to 30/6/20 (unless quarterly instalments apply)
          6/04 2020/21 tax year ended on 5th.  2021/22 tax year begins.

          New “off-payroll” working rules start.
          19/04 PAYE & NIC deductions, and CIS return and tax, for month to 5/04/21 (due 22/04 if you pay electronically)
          1/05 Corporation tax payment for year to 31/7/20 (unless quarterly instalments apply)
          19/05 PAYE & NIC deductions, and CIS return and tax, for month to 5/05/21 (due 22/05 if you pay electronically)

          Need more information?

          Do you need more guidance on the main tax events April/May 2021?We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

          Our fantastic team at A&C Chartered Accountants are here to help.

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            By Katie Tax Advice • Tax News 0 Comments

            Consultations issued on “tax day” by treasury

            Consultations issued on “tax day” by treasury:

            The Treasury normally issue a bundle of tax consultation documents on Budget Day. This year however they chose to delay the publication until 3 weeks after the Budget. We were expecting the consultation documents to include major changes to CGT and IHT, but it would appear that these have yet again been delayed. The Treasury have accepted a number of recommendations by the Office of Tax Simplification (OTS) on simplifying IHT reporting. From 1 January 2022 over 90 per cent of non-taxpaying estates each year will no longer have to complete IHT forms for deaths when probate is required. The government will also consider introducing a new digital system for IHT and probate reporting.

            Another consultation is seeking views on modernising the tax administration system including changes to the payment dates for those outside PAYE. It would appear that HMRC are reconsidering a possible Pay as You Go system for the self-employed that was originally consulted on in 2016.

            REVIEW OF BUSINESS RATES

            Among the documents published was an interim report on the government’s Fundamental Review of Business Rates, which sets out a summary of responses to last year’s call for evidence. The final report will be published in the Autumn. The government will also legislate to tighten tax rules for second homeowners meaning they can only register for business rates (and business rates relief) if their properties are genuine holiday lets. This will close a loophole that allowed some second homeowners to avoid paying council tax on that property, and some were even claiming coronavirus support grants for their “business”.

            Need more information?

            We offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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              By Katie COVID-19 • Covid-19 Hub • Tax Advice • Tax News 0 Comments

              New enhanced loss relief rules may result in extra tax refunds

              New enhanced loss relief rules may result in extra tax refunds:

              In the March Budget it was announced that the normal one year carry back for trading losses would be extended to three years. This means that many businesses that have made losses during the COVID-19 pandemic may be able to obtain a repayment of tax paid in that three-year period. This enhanced carry back applies to unincorporated businesses as well as limited companies and the details are set out in the latest Finance Bill.

              For corporation tax purposes the loss-making accounting period must end between 1 April 2020 and 31 March 2022 to qualify for the three year carry back. For unincorporated businesses, the trading loss must be incurred in 2020/21 or 2021/22.

              For example, if Albion Ltd incurred trading losses of £200,000 in year ended 31 December 2020 having made profits of £50,000 in year ended 31 December 2019 it would normally only be possible to relieve £50,000 of the losses.

              The new temporary carry back rules would permit losses to be set against trading profits made in the years ended 31 December 2018 and then 31 December 2017 as well. If profits in those years were £150,000 or more then the company would be entitled to a £38,000 corporation tax refund (19% of £200,000).

              Need more information?

              Do you need more guidance on tax refunds? We offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

              Our fantastic team at A&C Chartered Accountants are here to help.

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                By Katie Business Advice • Business News • Tax Advice • Tax News • Wealth Planning 0 Comments

                E-commerce and other businesses moving goods between UK and EU

                E-commerce and other businesses moving goods between UK and EU

                If you move goods between the UK and countries in the EU, you need to follow new customs and tax rules. Your business will be affected by the new rules if you: • buy goods from an EU seller and bring them into the UK • send goods you’ve sold to a buyer in an EU country • haven’t exchanged money but need to move equipment that you use for your business, between the UK and the EU. We understand this means a lot of changes are needed, and HMRC are available to help you in several ways. HMRC have a Customs & International Trade helpline on 0300 322 9434, for more help with importing, exporting or customs reliefs. The helpline is open from 8am to 10pm Monday to Friday and from 8am to 4pm at weekends.

                There is also a SME Brexit support fund available – Please follow the link here to apply and learn more. Smaller businesses can get up to £2,000 to pay for practical support, including training or professional advice to adjust to new customs, rules of origin and VAT rules when trading with the EU.

                HMRC have webinars available for you to attend online starting today. Please see below for a list of these to help you adjust to the new rules.

                Exporting: what you need to do to keep your goods moving:
                An overview of the actions you need to take now before you export goods from Great Britain to the EU and move goods between Great Britain and Northern Ireland.
                Key processes include – zero-rated VAT, customs declarations, using an intermediary as well as licences, certificates, and authorisations.
                Please register here to take part if you’re planning to export.

                Customs Import Declarations: an overview: If your business or a business you represent, needs to make customs import declarations on goods you’ve imported since 1 January, our webinar helps you to understand what’s needed for simplified declarations, supplementary declarations, and delayed import declarations.
                Please register here to take part if you’re planning to import.

                Trader responsibilities when using an intermediary: This webinar explains your responsibilities as a trader, if you choose to use an intermediary to complete import or export declarations for your business. These are complex and an intermediary can save you a lot of time.
                Please register here to take part if you’re planning to import or export.

                Importing: what you need to know about staged controls: This webinar takes you through the three stages of the new border controls introduced from 1 January 2021, and what actions you need to take for each stage.
                Please register here to take part if you’re planning to import.

                You can also:

                • watch HMRC’s YouTube channel to familiarise yourself with the new customs processes and what you need to do before you trade goods with the EU
                • use the trader checklist to make sure you’re familiar with the new rules that affect you
                • use the updated guides to understand the new customs and VAT requirements when moving goods between the UK and EU countries
                • sign-up to the Trader Support Service if your client’s business is moving goods between GB and Northern Ireland and use their suite of educational products – including online training modules and webinars for support with the Northern Ireland Protocol
                • you can also sign up to our weekly email updates on ‘News and information about importing and exporting with the EU’, providing hints and tips for businesses like yours, getting used to the new rules for importing and exporting.

                Need more information?

                We offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                Our fantastic team at A&C Chartered Accountants are here to help.

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                  By Katie Tax Advice • Tax News 0 Comments

                  More details on the new super-deduction for equipment

                  More details on the new super-deduction for equipment:

                  In the Budget on 3rd March the Chancellor announced a new 130% tax relief for expenditure on new plant and machinery incurred between 1 April 2021 and 31 March 2023. It turns out that this new tax relief is only available to limited companies and the latest Finance Bill reveals a nasty sting in the tail when the equipment is sold, as the clawback on disposal is potentially at the same 130% rate. So, if a new item of plant cost £100,000 the company would be able to deduct £130,000 in arriving at taxable profits thus saving £24,700 in corporation tax at 19%. However, if the plant was sold for £80,000 on 1 April 2023 130% of the proceeds would be clawed back and £104,000 added to taxable profit which could result in up to £26,000 corporation tax payable at the new 25% rate. The claw-back rate reduces on a time basis from 1 April 2023 onwards so it would be advisable to retain the asset long term.

                  The 130% rate does not apply to equipment such as air conditioning and central heating that normally qualify for a 6% writing down allowance. Such “integral features” qualify for a special 50% first year allowance for the same two-year period.

                  Please contact us to discuss the tax implications of major capital expenditure decisions.

                  Need more information?

                  We offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                  Our fantastic team at A&C Chartered Accountants are here to help.

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