By Katie Tax Advice • Tax News 0 Comments

Bring your tax affairs up to date

Bring your tax affairs up to date:

2018/19 tax returns can be amended by the taxpayer up until 31 January 2021. Where the omitted property income or gain relates to earlier tax years the taxpayer should consider disclosing using HMRC’s let property campaign. If this affects you we can assist you in putting together the details that HMRC require.

Need more information?

Do you need guidance with your tax affairs? 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

    CGT business asset disposal relief lifetime limit just £1 million

    In the March 2021 Budget, it was announced that CGT Entrepreneurs’ relief (ER) was replaced by CGT Business Asset Disposal relief (BADR) for disposals on or after 11 March 2020.

    It was also announced that the 10% CGT rate would only apply to the first £1 million of qualifying gains in the taxpayer’s lifetime and many business owners have misinterpreted how this limit applies.  Unfortunately claims under the predecessor ER need to be taken into consideration so if £750,000 ER has already been claimed only the first £250,000 of qualifying gains after 11 March 2020 would qualify for BADR.

    Any gains in excess of that amount would be taxed at normal CGT rates, currently 20% for higher rate taxpayers.

     

    Need more information?

    Do you need guidance on the replaced by CGT Business Asset Disposal relief (BADR)? Feel free to contact our team today, who are here to help you and your business succeed.

    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

      Support for taxpayers: more time to pay tax

      Support for taxpayers: more time to pay tax

      Those taxpayers who may have difficulty paying the tax due under self-assessment on 31 January 2021 can agree more time to pay with HMRC provided the amount outstanding is no more than £30,000.

      The government have already agreed that amounts due under self-assessment on 31 July 2020 could be deferred until 31 January 2021, but this latest announcement generally allows a further 12 months to pay.

      A key condition is that the taxpayer does not have any outstanding tax returns, no other tax debts, or other HMRC payment plans set up. The payment plan needs to be set up no later than 60 days after the due date of a debt. Interest will accrue on the tax owed based on the outstanding balance at 1 February 2021.

      You can either set up a payment plan online by logging into your HMRC online personal tax account or call the HMRC Payment Support Service.

      Need more information?

      We are here to offer support for taxpayers and will ensure you do not miss any tax deadlines. 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 News • Tax Advice • Tax News 0 Comments

        Renting Income – HMRC to open enquiries

        Renting Income – HMRC to open enquiries:

        You may have seen in the newspapers that Airbnb will share data with HMRC about the earnings of hosts (those who let out property) on its UK platform in the years 2017/18 and 2018/19.

        It is anticipated that HMRC will use this data to open enquiries into the tax affairs of individuals who have not declared letting income for 2017/18 and 2018/19. The deadline for opening an enquiry into a self-assessment return for 2018/19 is 31 January 2021, if the return was issued and submitted on time. The discovery rules allow HMRC to go back much further, potentially up to 20 years in some cases if the property income has not previously been reported.

        RENT COVERED BY RENT A ROOM RELIEF

        For many property owners the rental income will be tax free if it is within the £7,500 rent a room relief and will not even need to be reported. This applies where room(s) in the taxpayer’s main residence are rented out, typically to lodgers. Where the house is owned jointly, they would qualify for £3,750 each tax free.

        This £7,500 exemption would also apply where the property owners are temporarily absent and rent out their property, for example a house in SW19 during the Wimbledon fortnight.

        A few years ago it was proposed that such lettings would not qualify but the legislation was dropped and the CGT lettings relief restriction was introduced in the latest Finance Act instead.

        Need more information?

        We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience with property owners and rental properties. 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 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 • Startups • Tax News 0 Comments

          Increased Self-Employed Support Announced

          Increased Self-Employed Support Announced: A further update again for those who are self-employed – the next self-employed income support grant will increase from 55% to 80% of average profits – up to £7,500, covering November 2020 to January 2021. This is a new announcement made yesterday by the Chancellor.

          This is all the information we currently have, we will be in touch with any further updates.

          The Chancellor of the Exchequer Rishi Sunak said:

          I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed.

          It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.

          Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people and businesses the certainty they need over what will be a difficult winter.

          On top of this, the government has announced:

          • cash grants of up to £3,000 per month for businesses which are closed worth more than £1 billion every month
          • £1.1 billion is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly
          • plans to extend existing government-backed loan schemes and the Future Fund to the end of January, and an ability to top-up Bounce Back Loans
          • an extension to the mortgage payment holiday for homeowners
          • up to £500 million of funding for councils to support the local public health response.

          Need more information?

          We are helping all clients with the increased Self-Employed Support which has just been announced. We offer a wide range of services for the self-employed and we are here to help you. 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 • Startups • Tax Advice • Tax News 0 Comments

            Coronavirus Furlough Scheme Extended and Further Economic Support

            Coronavirus Furlough Scheme Extended and Further Economic Support,

            Update following the Prime Minister’s announcement on 31st October 2020.

            The Coronavirus Job Retention Scheme has been extended for a month with employees receiving 80% of their current salary for hours not worked and further economic support announced.
            In addition, business premises forced to close in England are to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant. Also, £1.1bn is being given to Local Authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly. Please read below for more information:

            Job Retention Scheme

            Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme, which will continue for a further month. Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.
            The Job Support Scheme, which was scheduled to come in today, Sunday 1st November, has been postponed until the furlough scheme ends.
            This extended Job Retention Scheme will operate as the previous scheme did, with businesses being paid upfront to cover wages costs.
            As under the current CJRS, flexible furloughing will be allowed in addition to full-time furloughing. Further details are set to be provided shortly.

            Who is eligible?

            Employers

            All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS.

            Employees

            To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
            The Government will confirm shortly when claims can first be made in respect of employee wage costs during November, but there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.

            Business Grants

            Businesses required to close in England due to local or national restrictions will be eligible for the following: For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks; For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks; For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.

            Additional guidance will be set out shortly and we will update all of our clients as soon as we know more.

            Stay safe during this time.Paul and the team

            Need more information?

            Do you need help with the Job Support Scheme? We offer a wide range of services  to help your business through this time. 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.

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              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.

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

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                By Katie Business News • Tax News 0 Comments

                Advisory fuel rates for company cars from 1 September 2020

                Advisory fuel rates

                These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 September 2020. Where there has been a change the previous rate is shown in brackets.

                 

                Engine Size Petrol Diesel LPG
                1400cc or less 10p 7p (6p)
                1600cc or less 8p
                1401cc to 2000cc 12p 8p

                (9p)
                1601 to 2000cc 10p (9p)
                Over 2000cc 17p 12p 12p

                (11p)

                 

                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 4p advisory rate. However, for hybrid cars use the equivalent petrol or diesel rate.

                Thus, where an employee is considering reimbursing their employer for private use to avoid a taxable benefit, it may be beneficial to compute the actual cost of private fuel rather than use the scale rate.

                Need more information?

                Do you need help with advisory car rates? 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. 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

                  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.

                  Contact us below

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