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

Furlough grant reduces to 70% for July

For the month of‌‌ July the CJRS Furlough grant support from the government via HMRC reduces to 70% of the employee’s usual pay for hours not worked. This is despite the fact that “Freedom Day” in England has been delayed four weeks to 19 July 2021, and now called “Terminus Day”. The government support to employers will then reduce to 60% in August and September.

Claim for some of your employee’s wages if you have put them on furlough or flexible furlough because of coronavirus (COVID-19).

The Coronavirus Job Retention Scheme has been extended until 30 September 2021. From 1 July 2021, the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.

Employers will top up employees’ wages to make sure they receive 80% of wages (up to £2,500) in total for the hours the employee is on furlough. The caps are proportional to the hours not worked.

Find out more about how the scheme is changing.

Claims for furlough days in June 2021 must be made by 14 July 2021.

Need more information?

For the month of‌‌ July the CJRS Furlough grant support from the government via HMRC reduces to 70% of the employee’s usual pay for hours not worked.

We offer a wide range of services which are unique to your business and have helped all our clients through the Coronavirus pandemic with our specialist team! 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 News • Tax Advice • Tax News 0 Comments

    Diary of main tax events for June/July 2021

    Please see below the diary of main tax events for June/July 2021: We are here if you need help with meeting these deadlines.

    Date What’s Due
    01/06 Corporation tax for year to 31/8/20 (unless pay quarterly)
    19/06 PAYE & NIC deductions, and CIS return and tax, for month to 5/6/21 (due 22/06 if you pay electronically)
    01/07 Corporation tax for year to 30/9/20 (unless pay quarterly)
    05/07 Last date for agreeing PAYE settlement agreements for 2020/21 employee benefits
    05/07 Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2020/21
    06/07 Deadline for forms P11D and P11D(b) for 2020/21 tax year. Also, deadline for notifying HMRC of shares and options awarded to employees.
    19/07 PAYE & NIC deductions, and CIS return and tax, for month to 5/7/21 (due 22/07 if you pay electronically)
    31/7 50% payment on account of 2021/22 tax liability due.

    Need more information?

    We are here if you need help with meeting these deadlines. 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 Business News • COVID-19 • Covid-19 Hub 0 Comments

      The impact of COVID-19 on Furnished Holiday Lets

      The COVID-19 pandemic and associated lockdown measures have caused a significant impact on businesses including Furnished Holiday Lets (FHL). The government has announced several measures over the past 12-months which have benefited FHLs – including the reduction in the rate of VAT, as well as the business rates holiday. However, they are yet to announce whether the letting condition will be relaxed.

      The impact of COVID-19 on those who operate Furnished Holiday Lettings has undoubtedly been significant, with reduced bookings meaning reduced income.  However, problems may arise if the FHL has not been let for a period of more than 105 days in the tax year.

      Qualifying Criteria

      In order to qualify for the various tax benefits an FHL offers, the property must be situated in the UK or the EEA and be run on a commercial basis with a view to making a profit.

      It must also meet the following three criteria in each tax year:

      • The availability condition – Be available for letting as furnished holiday accommodation for at least 210 days in the year.
      • The pattern of occupation condition – There must not be more than 155 days of lettings in a year that exceed 31 days.
      • The letting condition – Be let for at least 105 days in the year (excluding any lets over 31 days).

      Due to COVID measures, it may be difficult for the letting condition to be met meaning that the property would cease to qualify as an FHL and lose its beneficial tax status.

      Established FHLs

      For established FHL businesses i.e. the property has qualified as an FHL in the previous tax year, there is good news.  If there was an intention to meet the letting condition but this was not possible due to the COVID-19 measures, a ‘period of grace election’ should allow the property to qualify as an FHL so long as the other qualifying conditions are met. This can be extended for a further tax year but after two years of non-qualification, the property will not qualify as an FHL.

      The election is not automatic and has to be claimed, normally via the individual’s tax return, but can also be made in writing.

      New FHL businesses

      The ‘period of grace election’ does not apply to new FHL businesses. Instead, the property needs to meet the criteria throughout the 365-day period from the first commercial letting of the property.

      It is important to note that the 365-day period does not have to be the tax year to 5 April 2021. Depending on when a property was first let, there may be time after lockdown to meet the conditions for the first year of the new FHL business.

      If the criteria are still not met in this period, the property will not qualify as an FHL although it may qualify in future years.

      Due to the availability of the ‘period of grace election’, this should not have an impact on established FHL businesses i.e., ones that have met the criteria before.  It is more likely to have an impact on new FHL businesses.

      Need more information?

      We offer a wide range of services which are unique to Furnished Holiday Lets. Our team of chartered accountants have a wealth of experience and work hard to ensure they create smart and effective tax-efficient solutions 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 News • Tax Advice • Tax News 0 Comments

        Car benefit reduced where unavailable

        Company car benefit update: P11d forms reporting benefits in kind provided to employees and directors need to be submitted to HMRC by 6 July. Where a company car is “unavailable” for private use for 30 or more consecutive days the benefit is proportionately reduced.

        During the various lockdown periods many employees and directors have not been using their company cars and it may have been sitting on their driveway. Unfortunately, that does not count as being unavailable.

        HMRC have confirmed that they would continue to regard the car as available to the employee unless the keys or fobs are returned to the employer or to a third party such as the leasing or disposal company as instructed by the employer.

        Note that where the employee is provided with a motor car with zero CO2 emissions there is no taxable benefit in kind for 2020/21 although the charge increases to 1% of original list price for 2021/22.

        Need more information?

        Do you have a Company car? We offer a wide range of services which are unique to your business and can help you with this. 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 News • Tax Advice • Tax News 0 Comments

          EU VAT changes from 1 July 2021: The IOSS (Import One-Stop Shop) Scheme

          On July 1 2021, the European Union (EU) will introduce the Import One-Stop Shop (IOSS) scheme. The new system simplifies current VAT registration requirements for selling into the EU, making it easier for businesses to grow, stay compliant and protect your bottom line. Businesses will be able to sell to all 27 EU member states with just one VAT return.

          What is the IOSS?
          The Import One-Stop Shop is the electronic portal businesses can use from 1 July 2021 to comply with their VAT e-commerce obligations on distance sales of imported goods. The IOSS allows suppliers and electronic interfaces selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities, instead of making the buyer pay the VAT at the moment the goods are imported.

          Why is the IOSS being introduced?
          Both new schemes OSS and IOSS will help in Simplifying the VAT invoicing process while at the same time combating VAT fraud. This ensures fair competition for EU companies and the EU consumers will appreciate knowing that when buying goods online from outside or inside the EU, the VAT rate will be the same as for goods acquired in their home country.

          How does the IOSS work?
          The IOSS will be used for the importation of goods valued less than EUR 150 and it will simplify the declaration as well as payment of VAT of goods sold by distance sellers or electronic marketplace facilitating sales of goods. When registering to the IOSS, online sellers or online marketplaces/platforms receive an IOSS VAT number. This IOSS VAT number is used by postal operators and courier services to declare goods upon importation to the customs authorities. They can do so in any Member State regardless of the destination of the goods. Customs authorities verify the validity of the IOSS VAT number and then the package can be delivered to the customer. If a consignment consists of more than one item the total number of goods is being taken under consideration as the value of the consignment. The IOSS does not cover sales of goods that are subject to excise duties.

          From 1 April 2021, you can register businesses on the IOSS portal of any EU Member State. If businesses are not based in the EU, they will normally need to appoint an EU-established intermediary to fulfill their VAT obligations under IOSS.

          Is IOSS for you?

          By registering for IOSS your business could benefit from:
          • Access to all 27 EU member states
          • Improve your cash flow by removing import VAT payments
          • Enhance customer experience with reliable, transparent and accurate pricing at checkout
          You do not need to charge VAT on sales if:
          • The consignment is more than 150 EUR. Your sales are facilitated by an electronic marketplace.
          • In this case the marketplace needs to collect and remit VAT.
          The new rules could impact how you do business in the EU. The European Commission has published more information about these changes here.

          Need more information?

          Do you need help with the Import One-Stop Shop (IOSS) scheme. We work with Businesses who sell to all 27 EU member states and 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.

          Contact us below

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            By Katie Business Advice • Business News 0 Comments

            Warning against making fraudulent claims under the Job Retention Scheme

            Please note that HMRC make regular checks on companies making a claim under the Coronavirus Job Retention Scheme.

            If you make a claim that is fraudulent i.e. make a claim for a period whilst actually working, you will be required to pay back all grants received under the scheme and could be fined.

            All monies received under the scheme should only be used to pay your employees’ wages and they should receive a minimum of 80% of their regular salary.  You cannot enter into any transaction with your employee that reduces the amount they receive.

            As part of HMRC’s commitment to transparency and to deter fraudulent claims, they will publish information about employers who claim for December onwards on the Coronavirus Job Retention Scheme. The following information will be published on GOV.UK:

            • the employer name
            • an indication of the value of the claim
            • the company number for companies and Limited Liability Partnerships (LLP)

            HMRC will also be improving the information available to employees by including details of claims made for them in their Personal Tax Account (PTA).

            If you think you have made a claim when you shouldn’t have, please let us know immediately and we can advise you on what steps to take.

            Need more information?

            Do you need further help with the Coronavirus Job Retention Scheme? 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.

            Contact us below

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              By Katie Business News • Tax Advice 0 Comments

              Super-deduction and Hire Purchase

              Super-deduction and Hire Purchase

              In March 2021, the Chancellor announced in the budget a new “Super Deduction” Annual Investment Allowance. This means that from April 2021 until 31 March 2023, companies investing in qualifying new plant and machinery assets will be able to claim: a 130% super-deduction capital allowance on qualifying plant and machinery investments a 50% first-year allowance for qualifying special rate assets.

              Example of “Super Deduction”
              • Equipment cost of £50,000 x
              • Super Deduction of 130% x
              • Corporation tax rate of 19% =
              • Tax Saving of £12,350

              Hire Purchase
              The use of a Hire Purchase facility enables businesses to spread the initial cost of purchasing new equipment over several years with fixed monthly payments. A Hire Purchase facility qualifies as eligible to claim under the Annual Investment Allowance. This means that a business utilising a Hire Purchase Facility can spread the initial cost of investment and free up cashflow, whilst also allowing the business the benefit from tax allowances and also benefiting from offsetting the interest charges on the finance facility against their corporation tax bill.
              Therefore the combination of the new Super Deduction Annual Investment Allowance, alongside the use of a Hire Purchase facility, will benefit a business hugely for tax purposes as well as cashflow retention.

              For further guidance and reading on the Super Deduction Annual Investment Allowance, please visit the gov website here

              Need more information?

              Do you need more guidance on the Super-deduction and Hire Purchase?

              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 Business News • Tax Advice • Tax News 0 Comments

                Diary of main tax events May/June 2021

                Check out our table below for the diary of main tax events May/June 2021

                Date What’s Due
                 

                01/05

                		 Corporation tax payment for year to 31/07/20 (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)
                01/06 Corporation tax payment for year to 31/08/20 (unless quarterly instalments apply)
                 

                19/06

                		 PAYE & NIC deductions, and CIS return and tax, for month to 5/06/21 (due 22/06 if you pay electronically)

                Need more information?

                Do you need more guidance on the Diary of main tax events for May/June 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 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 News • Tax Advice • Tax News 0 Comments

                  No Employers NIC for a year when hiring ex-military staff

                  Government have announced a one-year exemption from paying employers national insurance contributions (NICs) where military veterans are recruited by civilian employers.

                  Employers can claim relief if they employ a veteran during the qualifying period. The qualifying period starts on the first day of the veteran’s first civilian job since leaving the regular armed forces and ends 12 months later. For 2021/22 employers will be required to pay the NICs and then claim back the amounts paid at the end of the tax year. From 6 April 2022 a new zero NIC rate will apply.

                  Need more information?

                  Are you keen to hire a military staff member? 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 and 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.

                  Contact us below

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