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

Covid-19 support – HMRC gives Self Assessment taxpayers more time

Covid-19 support – HMRC gives Self Assessment taxpayers more time.

Thankfully, HMRC recognises the pressure faced this year by Self Assessment taxpayers and their agents. COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline. The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.

HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020 to 2021 tax return and pay any tax due.

HMRC is encouraging taxpayers to file and pay on time if they can, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.

The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:

  • anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February
  • anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April

Interest will be payable from 1 February, as usual, so it is still better to pay on time if possible.

Need more information?

Are you a Self Assessment taxpayer?

We offer a wide range of services which are unique to your business and especially those who are self assessment taxpayers. 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

    130% super-deduction for investing in new plant continues

    130% super-deduction for investing in new plant continues:

    Many businesses may have been too short of cash to take advantage of the new super-deduction for investing in new plant in 2021 but may be more confident about investing in 2022.

    This tax break, which started on 1 April 2021 continues until 31 March 2023, allows companies to deduct 130% of the cost of new plant and machinery from their profits where that plant would normally be included in the general capital allowances pool.

    If a company buys a new commercial vehicle costing £50,000 that means they can deduct £65,000 from trading profit saving £12,350 in corporation tax. Note that there would be a clawback charge on disposal of the asset, which could be as much as 130% of the proceeds.

    There is currently no financial limit on the amount that the company spends on new equipment qualifying for 130% tax relief.

    Need more information?

    Do you need further guidance on super-deduction?

    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 • Tax Advice 0 Comments

      New Year, New Opportunities – Freeports

      New Year, New Opportunities – Freeports

      In his Spring 2021 Budget the Chancellor announced that there would be 8 “Freeports” in England with generous tax breaks to encourage businesses to set up and invest in those areas. The devolved governments will also be announcing locations in Scotland, Wales and Northern Ireland in due course.

      The proposed locations of the freeports can be found here: https://www.gov.uk/guidance/freeports#where-are-they-located

      SUMMARY OF FREEPORT TAX ADVANTAGES

      The main tax and customs duty advantages of locating in a designated freeport area are as follows:-

      • SDLT exemption on the purchase of land and buildings in the area
      • 10 year write off of the cost of constructing or renovating commercial property
      • Enhanced capital allowances for investment in plant and machinery
      • Exemption from employers NICs for certain staff working in the freeport area
      • Special VAT and Customs Duty rules

      7 of the 8 freeport areas are on the coast and thus ideal locations for businesses importing goods into the UK. There is however no restriction on the nature of business carried out within the designated freeport area.

      The eighth English freeport is around East Midlands Airport which would be an ideal place to locate a distribution centre, being half way up the M1 motorway.

      Please contact us for more details on the tax breaks for locating in one of the designated freeport areas.

      Need more information?

      Do you need further guidance with freeports? 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 • Tax Advice 0 Comments

        Working From Home due to Covid Restrictions?

        Working From Home due to Covid Restrictions?

        HMRC rules relaxed for the tax years 20/21 and 21/22

        Make your claim and get a Xmas present from HMRC of at least £62.

        If as an employee you are working at home as a result of Coronavirus but have not been reimbursed the additional costs by your employer, you may claim a deduction from earnings.

        HMRC have advised that as long as an employee you have been required to work from home at some point during 2020-21 they will accept a claim for home-working for the whole 2020-21 tax year. This is extended to 2021-22 up until the end of the pandemic

        Relief will not be restricted if you returned to your workplace before 6 April 2021 or if you only worked from home on a part-time basis.

        As an alternative to claiming actual expenses which can be impractical to calculate, you may claim HMRC’s home working allowance of £6 per week.

        Make your claim at https://www.gov.uk/tax-relief-for-employees/working-at-home

         

        Need more information?

        Are you working from home due to Covid restrictions? We have helped many clients weather this storm 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 and . Our team 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 Tax Advice • Tax News 0 Comments

          Diary of main tax events – December 2021/January 2022

          Please see below the list of main tax events for December 2021/January 2022. If you need any further help please do not hesitate to contact us.

          Date What’s Due
          01/12/21 Corporation tax for year to 28/02/2021 unless quarterly instalments apply
          19/12/21 PAYE & NIC deductions, and CIS return and tax, for month to 5/12/21 (due 22/12 if you pay electronically)
           

          30/12/21

          		 Deadline for filing 2020/21 tax return online in order to request that HMRC collect outstanding tax via the 2022/23 PAYE code
           

          01/01/22

          		 Corporation tax for year to 31/03/2021 unless quarterly instalments apply
           

          19/01/22

          		 PAYE & NIC deductions, and CIS return and tax, for month to 5/1/22 (due 22/1 if you pay electronically)
           

          31/01/22

          		 Deadline for filing 2020/21 self-assessment tax return online and paying your outstanding tax for 2020/21 and first payment on account of 2021/22 tax.

           

          Need more information?

          Do you need further guidance on the main tax events for December 2021/January 2022. 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 • Tax Advice 0 Comments

            Advisory fuel rate for company cars – December 2021

            HMRC have again increased the advisory fuel rates December 2021 that apply for the reimbursement of employees’ private fuel for their company cars.

            The new rates apply from 1 December 2021, but you can continue to use the previous rates for up to 1 month from the date the new rates apply. Where there has been a change the previous rate is shown in brackets:-

             

            Engine Size Petrol Diesel LPG
            1400cc or less 13p

            (12p)

            		  

            9p

            (7p)
            1600cc or less 11p

            (10p)
            1401cc to 2000cc 15p

            (14p)

            		 10p

            (8p)
            1601 to 2000cc 13p

            (12p)
            Over 2000cc 22p

            (20p)

            		 16p

            (15p)

            		 15p

            (12p)

             

            You can continue to use the previous rates for up to 1 month from the date the new rates apply.  For wholly electric cars there is a 5p (was 4p) advisory rate. Note that for hybrid cars use the equivalent petrol or diesel rate.

            Need more information?

            HMRC have again increased the advisory fuel rates December. Do you have company cars?

            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 • Tax Advice • Tax News 0 Comments

              Corporation Tax Returns – Report CJRS furlough grants

              Corporation Tax Returns – Report CJRS furlough grants

              The latest version of the CT600 Corporation Tax Return requires companies to report CJRS furlough payments received and the amounts that the company was entitled to during the period. Where any overpayments have already been disclosed to HMRC that amount should be reported.

              The total amount overclaimed should then be entered in box 526. This amount will be assessed to income tax not corporation tax and HMRC will provide you with a payment reference.

              Need more information?

              Do you need further guidance on Corporation Tax Returns? 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. 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 0 Comments

                Christmas parties and tax!

                LET’S HAVE  REAL CHRISTMAS PARTIES THIS YEAR!

                Last year many businesses put on a “virtual” Christmas parties and HMRC agreed that would be acceptable in order for there to be no taxable benefit for the employees involved.

                There continues to be no taxable benefit for employees provided that all staff are invited, and the cost does not exceed £150 a head, inclusive of VAT.

                If you have also had an annual summer event then provided the combined cost of the two events is no more than £150 a head then there would be no taxable benefit in kind. If, however the summer event cost £80 a head and the Christmas party £100 a head only one event would qualify for the exemption.

                Need more information?

                Does your office have Christmas parties? Make sure you do it right and know what to do about tax! 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

                  Gifts to Charity

                  Gifts to Charity:

                  Where possible taxpayers should “Gift Aid” any payments to charity to provide a further benefit to the charity. Higher rate taxpayers obtain additional tax relief on the grossed-up amount donated.

                  For example, where an individual makes a £20 cash donation to charity the charity is able to reclaim a further £5 from HMRC making a gross gift of £25. Where the individual is a 40% higher rate taxpayer he or she is able to claim a further £5 tax relief under self-assessment, reducing the net cost of their donation to £15.

                   

                  Note that the donor is required to make a declaration that they are a UK taxpayer and those that have not suffered sufficient UK tax to support the Gift Aid amount will taxed on the shortfall.

                  Remember that Gift Aid does not just apply to gifts of cash. Many charity shops will now sell donated items on your behalf and are able to treat the sale proceeds as Gift Aided donations. It is also possible to gift quoted securities and land and buildings to charity and claim Gift Aid on the market value of those assets.

                  Need more information?

                  Where possible taxpayers should “Gift Aid” any payments to charity to provide a further benefit to the charity. Do you need help with this?

                  We offer a wide range of services which are unique to your businessOur 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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