COVID-19 BUSINESS SUPPORT UPDATE

Mainland Scotland is currently subject to tier 4 COVID-19 restrictions. Similarly to last year’s support package, businesses will be eligible to place employees on furlough until the 30th of April 2021. The government will pay 80% of employees’ normal pay for hours not worked up to £2,500 per month. Hospitality, retail and leisure businesses in[…]

IS YOUR BUSINESS READY FOR BREXIT?

The UK left the European Union on the 31st of January 2020 and the transition period ends on the 31st of December 2020. The Covid-19 pandemic has dominated the news headlines this year, but Brexit is still progressing. During the transition period, the UK remains in both the EU customs union and single market. Until[…]

BREXIT PLANNING RESOURCES

There is still some uncertainty as to whether the UK or EU will agree a tariff free trade agreement. Either way UK business will face additional documentation for importing and exporting goods to the EU from 1 January 2021. Planning for the new requirements seems sensible right now. There are also other business matters to[…]

GET READY FOR LEAVING THE EU

The United Kingdom leaves the European Union at 11 pm on 31st 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[…]

CAN SOFT SKILLS BE TAUGHT?

A positive attitude, a strong work ethic, innovative mindset and being a team player are just as important to employers as practical skills and academic background. It is important to have teams of people who have the hard skills to do a job, e.g. they’re qualified, have relevant experience, can write code, design a product,[…]

INTERACTION WITH VAT FLAT RATE SCHEME

Small businesses with turnover below £150,000 may join the VAT flat rate scheme which makes their VAT accounting much simpler as they pay HMRC a percentage of their VAT inclusive turnover. The temporary reduction in the rate of VAT from 20% to 5% reduces the flat rate percentages for affected businesses as set out below:[…]

VAT TREATMENT OF DEPOSITS

It is fairly common, particularly in the summer holidays, to pay a deposit when booking a hotel or self-catering accommodation but how should the deposit be accounted for? HMRC have confirmed that the hotel has the option of charging VAT according to the ‘basic tax point’ (dates of the stay) rather than the ‘actual tax[…]

MORE DETAILS ON HOSPITALITY VAT REDUCTION

When the Chancellor announced a temporary cut in the rate of VAT for the hospitality sector and attractions in his summer statement on 8 July there were several areas that needed clarification. The reduction applies to supplies made between 15 July 2020 and 12 January 2021. HMRC have now set out more details of which[…]

REFUNDS OF QUARTERLY INSTALMENT PAYMENTS

Companies with profits in excess of £1.5 million are required to make quarterly instalment payments (QIPs) of their corporation tax liability much earlier than the normal payment date which is 9 months after the end of the accounting period. For the year ended 30 June 2020 a company with profits between £1.5 million and £20[…]