Category Archives: Tax

Electric Car Tax Benefits

As well as the well known environmental benefits, there are also lots of electric car tax benefits.  From government grants to benefit in kind allowances, there are reasons to lease or buy an electric car via the company and make it available for private use to an employee/director. In this blog, we will go through the grants available and the benefit in kind implications of buying an electric car through your business. Benefit-In-Kind Implications One of the key electric car tax benefits is a very low benefit in kind (BiK) rate. This makes it a highly tax-efficient option for individuals and […]

HMRC enquiries into individuals and businesses are carried out each year in order to ensure that they have paid the right amount of tax.  Since 2010 HMRC have strengthened their approach and we have observed a general trend which has displayed a year-on-year increase in the number of tax enquiries opened. COVID 19 & HMRC Enquiries The pandemic in 2020 was unprecedented in so many ways for both individuals and businesses.  When the first lockdown hit in March 2020, along with the majority of the country HMRC found themselves adapting to working from home. With operatives unable to undertake face […]

The Effects Of Brexit On VAT For Businesses

Over the past year or so, it’s fair to say that many businesses have had lots of things to consider. One thing that seems to have slipped off the radar is the effects of Brexit on businesses. At the time of writing (April 2021), polls by YouGov show that less than 30% of respondents consider Britain leaving the EU to be an important issue facing the country. However, the effects of Brexit on businesses remain profound.  Furthermore, as new legislation and cooperative technologies are introduced over the coming months and years, it’s likely to be an ongoing concern for many. […]

Budget 2021

In this highly anticipated Budget announcement, there was a real focus on support for businesses and individuals whilst the lockdown is still in place and plans to help the economy recover once restrictions are lifted. The Chancellor opened by stating that he wants to be honest about the government’s plans for fixing the public finances and set out plans for the future. Making it clear that he would do… “whatever it takes” during the pandemic, and that he has done and will continue to do so, he added that “It’s going to take this country, and the whole world, a […]

Domestic Reverse Charge – Important Changes For Builders

The new VAT Domestic Reverse Charge which was originally due to start in October 2019 has been the subject of a renewed commitment by the government. A spokesperson confirmed that after a number of postponements: “The government is committed to implementing the reverse charge on the 1st of March” The reverse charge is intended to reduce VAT fraud for companies that buy or sell construction services. How The Reverse Charge Will Work The reverse charge heps to reduce VAT fraud by ensuring that companies who provide an onward supply of services (e.g. typical subcontractors) are unable to bypass paying VAT […]

For those businesses that opted into the government’s COVID-19 VAT payment deferral scheme, the new guidance that outlines the further extension of deferral has been released by HMRC. The scheme which allowed for VAT payments falling due between 20 March 2020 and 30 June 2020 to be deferred until 31 March 2021 is to be extended for organisations that still have deferred VAT payments to make. Opt In To The VAT Payment Deferral Scheme By opting in to the new VAT payment deferral scheme when it launches in 2021, the option to pay in instalments instead of one bulk payment […]

Self Assessment Time To Pay

It’s that time of year again as we start the process of preparing self-assessment tax returns for our clients. This year however things are a little different, due to changes to the Self Assessment Time To Pay service. Al self-assessment tax returns must be submitted and the 31st of January, however, it is best not to wait until the deadline because not only does the tax return need to be filed you also need to arrange payment for any personal tax due by the payment deadline. Time To Pay Online Service Self Assessment taxpayers can apply online for additional support […]

Furlough Scheme Is Extended – CJRS.2

Furlough scheme is extended to March For those businesses affected by the increased restrictions necessary to curb the coronavirus pandemic, additional economic support has been announced by the Chancellor. The Coronavirus Job Retention Scheme (CJRS) otherwise known as furlough was originally due to end on the 31st of October. However, the Government has announced that the furlough scheme is extended to March. This means that the CJRS will now be extended by five-months until the end of March with the government paying 80% of wages for the hours that furloughed employees do not work. SEISS Also Extended Similarly, support for […]

Extended Date For Making Tax Digital Is Now Confirmed

Making Tax Digital is already compulsory for VAT registered businesses with a taxable turnover of over £85,000. At the present time, smaller businesses with less turnover aren’t currently obligated to comply. However, the extended date for Making Tax Digital for all VAT registered businesses is now confirmed as April 2022. Making Tax Digital For VAT As we know, MTD is already compulsory for VAT registered traders with an annual turnover exceeding £85,000. However, smaller VAT registered businesses with lower turnover have so far been exempt. This is, in part, due to plans to make tax digital for all VAT registered […]

The Importance Of Cash Flow

How Cash Flow Planning Can Help Your Business Recover From Covid-19 For business owners, one of the hardest questions posed by the outbreak of Covid-19 was “How long can we last without cash flow?”.  To quickly adjust for the difficulties ahead and with cash flow forecasts being a required part of the application process for government-backed loans, many found it necessary to take a good hard look at their budget. In this instance, cashflow planning has prepared businesses for the impact of the pandemic. But it’s much more than just a tool in a crisis. The Importance Of Cash Flow […]