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

Diary of main tax events October / November 2020

Diary of main tax events October / November 2020

Date What’s Due
1/10 Corporation tax for year to 31/12/19, unless quarterly instalments apply
5/10 Deadline for notifying HMRC of chargeability for 2019/20 if not within Self-Assessment and  receive income or gains on which tax is due
19/10 PAYE & NIC deductions, and CIS return and tax, for month to 5/10/20 (due 22/10 if you pay electronically)
1/11 Corporation tax for year to 31/01/2020, unless quarterly instalments apply
19/11 PAYE & NIC deductions, and CIS return and tax, for month to 5/11/20 (due 22/11 if you pay electronically)

Need more information?

Do you need help with the diary of main tax events for October / November 2020? Contact our team today. We offer a wide range of services 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 • Insights 0 Comments

    New package to support and enforce self-isolation

    This scheme is for lower income earners who cannot work from home and have lost income as a result.  This is an NHS Test and Trace Support payment of £500 and applies to employees who are required to self-isolate. This starts from 28 September 2020. The scheme will be administered by local authorities and is expected to be in place by 12 October 2020. Employees who were required to self-isolate from 28 September will receive a backdated payment once the scheme is set up.   Please note that this is a one off payment to the employee only.

    There is no information as to how this will be administered as yet but as soon as we have any further information, we will let you know.  It may be that the local authority will contact all people eligible.

    New fines for those breaching self-isolation rules will start at £1,000 – bringing this in line with the penalty for breaking quarantine after international travel – but could increase to up to £10,000 for repeat offences and for the most egregious breaches, including for those preventing others from self-isolating. More information can be found here.

    Need more information?

    Has the coronavirus affected your business? Do you have staff members in self-isolation? We have been extremely busy helping clients old and new get through this period. We offer a wide range of services which are unique to your business and our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector.  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 • Tax Advice • Tax News 0 Comments

      Considering an electric company car?

      Considering an electric company car? There is currently a zero P11d benefit for the drivers of electric cars in 2020/21. The legislation for this change is included in Finance Act 2020 which also states that the benefit will be 1% of list price in 2021/22 and then 2% in 2022/23.

      The zero taxable benefit also applies to hybrid cars emitting no more than 50 grams of CO2 per kilometre with a range using its electric motor of at least 130 miles, but only for cars first registered on or after 6 April 2020. Unfortunately, the range of most plug in hybrids is considerably less than 130 miles. For example, the Mercedes A 250e costing £32,980 emits 26g CO2 but has a PEV range of only 45 miles.

      An additional benefit for the business is that motor cars that emit no more than 50g CO2 per kilometre currently also qualify for a 100% first year allowance which means that the full cost can potentially be set off against business profits.

      The Mercedes A 250e would currently qualify for a 100% first year allowance but the P11d benefit would be 6% for the employee in 2020/21.

      Note however that the 50g CO2 threshold reduces to zero from April 2021 which means that hybrids will cease being eligible for the 100% write off. If the business can afford to do so it’s a good time to buy a plug in hybrid.

      Need more information?

      Do you need help purchasing an electric company car? 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 Advice • Business News • Tax Advice • Tax News 0 Comments

        Get ready for leaving the European Union on 1st January 2021

        Leaving the European Union: The United Kingdom leaves the European Union at 11pm on 31 December 2020 when the transitional period ends. It is still unclear whether a trade deal will have been agreed with the EU by that date, and such an agreement is looking increasingly unlikely. HMRC have started writing to businesses alerting them to important changes from 1 January 2021 and suggesting that they have new procedures in place if they wish to trade with the EU from that date.

        In particular, businesses will need to submit declarations when importing and exporting goods that are categorised as ‘controlled’. Import processes for non-controlled goods will be phased in over a 6 month period. ‘Controlled’ goods include alcohol, explosives and certain drugs.

        OBTAIN AN EORI NUMBER

        If you have been trading internationally you should already have an Economic Operator Registration and Identification (EORI) number. You will need this to complete customs declarations. If you do not yet have one, you can register for free by going to www.gov.uk/eori

        Businesses need to decide how they are going to make customs declarations. Customs agents, freight forwarders and express operators can help with declarations and ensure the business is providing the necessary information.

        IMPORTS OF GOODS SUBJECT TO STAGED CONTROLS

        Most traders with a good compliance record will be able to defer import declarations on most goods for up to 6 months after 1 January 2021 depending on the nature of the goods.

        KEY VAT ISSUES AT THE BORDER

        Businesses will need to decide how they will account for import VAT when they make a customs declaration. From 1 January 2021, businesses will be able to use postponed VAT accounting to account for import VAT on their VAT Return for goods imported from anywhere in the world.

        They will also need to check if Import VAT is due at the border.  Import VAT will not be due at the border if goods in a consignment do not exceed £135 in value. The only exceptions will be excise goods and gifts.

        WHAT TARIFFS APPLY FROM 1 JANUARY?

        From 1 January 2021, there will be new rates of Customs Duty for imports – called the UK Global Tariff.

        The Tariff rates for transactions with the EU will depend upon whether or not a deal is reached. For example, if there is no deal with the EU the Tariff on motor cars will be 10% so many car dealers are suggesting that business should consider acquiring a new vehicle before 1 January. To check the tariffs that will apply to goods you import, go to www.gov.uk/guidance/uk-tariffs-from-1-january-2021

        Need more information?

        Do you need help with changes made by leaving the European Union? We offer a wide range of services for global 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.

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

          Creating an effective reward strategy

          In the current challenging trading environment, many firms are asking more and more of their team. As such, having an effective reward strategy has never been more important.

          COVID-19 has tested every business and challenged all of us to come up with new ways of working. Spare bedrooms have become home offices, workers have had to balance childcare

          and home schooling with their work commitments, and those who live

          alone have had to deal with loneliness and its effect on their mental health.

          Surviving a tough environment has also meant that businesses have had to find new ways to motivate and retain their teams of people.

          A huge percentage of the workforce has had to deal with increased stress, anxiety and adapting to a new way of working. Many businesses have asked more of their people, in order to survive the COVID-19 crisis and a high percentage of employees have reportedly been working longer hours as the line between work and home life has become blurred. As such, businesses have had to re-think how they motivate their people and that is where a reward strategy comes in.

          A reward strategy should consider the strategic objectives of your firm, what your people want, what is affordable and the structures needed to achieve this.

          Develop your people

          Providing personal and professional growth opportunities is an essential part of a reward strategy. Good people stay with businesses that provide them with training and development opportunities.

          Benefits

          Cash is important but so is a good benefits package. Benefits can include generous annual leave entitlements, medical cover and a good pension scheme. Over and above that, more and more employees value flexibility – whether that is the option to work remotely, compress 5 days work into 4 and so on.

          COVID-19 has proved that remote working can be just as productive as working from the office. Those firms that continue to offer flexible working arrangements and embrace agile working, post COVID-19, will retain the best people.

          Be different

          The very best firms offer rewards that are a little bit different. This doesn’t have to be expensive. For example, you could offer charity volunteering opportunities or Friday morning yoga classes for staff. Regardless of the elements you choose to incorporate into your reward strategy, the key is to ensure that the team feel valued by the firm.

          Need more information?

          Have you created a reward strategy? We offer a wide range of services and 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 • COVID-19 • Covid-19 Hub 0 Comments

            Virtual meetings: running effective meetings

            We have adapted our accountancy practice to work with existing and new clients through virtual meetings. Over the course of the past few months, we have all had to adapt to working remotely.

            Despite lockdown restrictions, many businesses have found ways to move their operations online, with all staff working remotely. This has given rise to an increased volume of virtual meetings on services such as Skype, Zoom, Teams, WebEx or other popular online meeting services. This has resulted in a new challenge – how to have an effective virtual meeting.

            Agenda

            Just like any meeting, take the time to set an agenda and circulate it in advance of the call along with any supporting documents.

            Setting an agenda and sticking to it helps to keep the virtual meeting on track. If there are lots of documents, make sure that you circulate them in time to allow people to read them well in advance.

            Choose the right technology

            There is nothing more frustrating than dialling into a video or conference call and not being able to connect due to a technical glitch. Before you set up your virtual meeting, check with the attendees that they are comfortable (and able) to use your platform of choice. If possible, use a system that allows users to join via a web browser – most platforms such as Skype, Teams, Zoom, WebEx, etc. allow this.

            Etiquette

            A virtual meeting is still a meeting, so make sure you give it your full attention. Ask all attendees to use video – this makes it harder for them to do something else during the virtual meeting as they will be on everyone’s screen. In addition, seeing people on screen can help those who have been working from home during COVID-19 to feel more connected.

            Jump into the content

            Don’t waste time (yours or other people’s) during a virtual meeting. Keep it short and get straight into the agenda. Aim to follow up within 24 hours of the meeting with any relevant action points as it keeps people’s attention. By sending the notes around 2 weeks after a meeting, momentum on any actions may be lost.

            Need more information?

            We have adapted our business to provide clients with virtual meetings. We offer a wide range of services which are unique to your business and work with clients virtually all over the world. 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 • Tax Advice • Tax News 0 Comments

              VAT definition of “motor car”

              For VAT purposes the definition of a motor car has been amended several times over the years.

              The current definition states:   “Motor car” means any motor vehicle of a kind normally used on public roads which has three or more wheels and either:

              1. a) is constructed or adapted
                solely or mainly for the
                carriage of passengers; or
              2. b) has to the rear of the
                driver’s seat roofed
                accommodation which is fitted with side windows or which is constructed or adapted for the fitting of side windows;

              There are a number of exceptions to this rule: notably vehicles constructed to carry a payload of one tonne or more, i.e. double cab pick-ups such as a Toyota Hilux.

              COMPANY VANS WERE MOTOR CARS

              The Court of Appeal have now ruled on the tax status of certain vehicles provided to employees of Coca Cola. The court has upheld the HMRC view that vans with windows and a second row of seats behind the driver are not goods vehicles but motor cars for benefit in kind purposes.

              Consequently, the income tax and national insurance payable by employee and employer is significantly higher than if the vehicles had been classified as goods vehicles.

              The income tax legislation defines a “goods vehicle” as “a vehicle of a construction primarily suited for the conveyance of goods or burden of any description…”

              At the Tax Tribunal it was decided that modified VW Kombi vans failed this test whereas modified Vauxhall Vivaro vans did fall within the definition of goods vehicles.

              It has now been determined that the Vauxhalls should also be taxed as motor cars for P11d benefit in kind purposes. This means that where the vehicle is available for private use the taxable benefit will be based on the original list price multiplied by a percentage based on the vehicle’s CO2 emissions.

              The decision means that employers may need to reconsider providing such vehicles. They may also need to rectify the P11d reporting in respect of earlier years and we await further guidance from HMRC.

              What is also particularly confusing, and thus difficult for businesses to deal with, is that the benefit in kind rules are not the same as the rules for recovery of input VAT and it would be useful if there was a common definition for tax purposes

              Need more information?

              Do you need more guidance on the VAT definition of “motor car?” We offer a wide range of services and our team of chartered accountants have a wealth of experience with company cars. 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 0 Comments

                Notify HMRC of overclaimed CJRS “furlough” grants within 90 days

                The calculation of the furlough Coronavirus Job Retention Scheme grants has proven to be complex, particularly as HMRC frequently changed the rules and the method of computation. Consequently, many errors have arisen and need to be corrected. The latest Finance Act requires employers to notify HMRC within 90 days where it turns out that they were not entitled to receive the furlough grants and there is a penalty for failure to notify them.

                HMRC has said that it will be lenient in relation to genuine mistakes, and that penalties will be charged only in cases of deliberate non-compliance.

                NUMEROUS FRAUDULENT CJRS CLAIMS IDENTIFIED

                HMRC’s CJRS fraud reporting portal had received over 2,000 reports of wrongful claims.

                Examples of such wrongful claims include;

                • Claiming furlough payments for staff who are continuing to work
                • Furloughing staff but asking them to work “voluntarily” on an unpaid basis.
                • Claiming furlough payments for “ghost” employees, and those who left employment before 19 March 2020.
                • Not passing on the full amount of furlough pay to staff.
                • Failing to account for PAYE tax and NIC in relation to furlough payments

                HMRC also have the power to transfer CJRS penalties to the directors of an insolvent company if their company does not pay them.  We therefore suggest that employers should check the accuracy and validity of their CRJS claims as a matter of priority, and ensure that any inaccuracies or errors are disclosed to HMRC as quickly as possible. We can of course assist you in checking claims.

                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 Business Advice • Business News 0 Comments

                  Diary of main tax events August / September 2020

                  Diary of main tax events August / September 2020

                  Date What’s Due
                   

                  1/08

                  		  

                  Corporation tax for year to 31/10/19 (unless pay quarterly)
                   

                  19/08

                  		  

                  PAYE & NIC deductions, and CIS return and tax, for month to 5/8/20 (due 22/08 if you pay electronically)
                   

                  1/09

                  		  

                  Corporation tax for year to 30/11/19 (unless pay quarterly)
                   

                  19/09

                  		  

                  PAYE & NIC deductions, and CIS return and tax, for month to 5/9/20 (due 22/09 if you pay electronically)

                  Need more information?

                  Do you need help with the diary of August / September tax events? We offer a wide range of services which are unique to your business and are here for you. 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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