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[…]

CGT PRIVATE RESIDENCE RELIEF CHANGES GO AHEAD

The latest finance bill includes important changes to private residence relief that took effect from 6th April 2020. The first change is to limit to just 9 months for the period prior to disposal that counts as a period of deemed occupation and thus exempt from CGT even though the owners are not living in[…]

SELF-EMPLOYMENT INCOME SUPPORT SCHEME

On the 26th of March the Chancellor announced a grant to be paid to the self-employed and members of a partnership who have lost income due to Coronavirus. This scheme will allow you to claim a taxable grant worth 80% of your trading profits, up to a maximum of £2,500 per month, for the next[…]

CHANGES TO CAPITAL TAX GAINS

From the 6th of April 2020, there will be some changes to capital tax gains. To make sense of the upcoming adjustments, we will show you how these changes work in action: Letting Relief: £40,000 Potential Tax Relief Lost Current Rules Capital gains tax relief of up to £40,000 (£80,00 per couple) is available if[…]