CHANGES TO CJRS “FURLOUGH” CLAIMS

Note that for the month of August the government will continue to pay 80% of employees’ regular pay for hours that they are furloughed but will no longer pay the associated employer NICs and pension costs. The government support then reduces to 70% in September and 60% in October. Please get in touch if you[…]

HIGH INCOME CHILD BENEFIT CHARGES NOT VALID

A recent tax tribunal has ruled against HMRC who were seeking to raise tax assessments for the high-income child benefit charge (HICBC) for earlier years that had not been reported to HMRC. HICBC is a special tax charge that applies where one member of a couple in receipt of child benefit receives income in excess[…]

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[…]

P11D FORMS STILL DUE BY 6 JULY

Despite the Coronavirus lockdown, HMRC have announced that they will still expect P11D forms reporting expenses and benefits to be submitted by the normal 6 July deadline. Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively, and necessarily in the performance of the employee’s duties. Dispensations from reporting[…]

CAN WE FURLOUGH THE COMPANY CAR?

During the lockdown period many employees and directors have not been using their company cars and they have been left sitting in the driveway. You might think that means that the benefit of having a company car does not apply, but unfortunately HMRC do not agree. HMRC have recently confirmed that there continues to be[…]