News
Unravelling the jargon: what is a support bubble?27/10/2020 - More...
The following notes are copied from the GOV.UK website. At first glance, it would appear that the definition of a support bubble should be fairly easy to grasp. Don’t hold your breath. Basically, a support bubble is a close support network between a household with only one adult in the home (known as a single-adult household) and one
Handling food? Wash, those hands
27/10/2020 - More...
If you are considering any change to your business activities that will involve handling any packaged food or raw ingredients, as you would expect, there are a raft of regulations that you will need to consider and adopt. The Department of the Environment has published considerable guidance on the GOV.UK website. Simply Google
New cashback scheme proposed
22/10/2020 - More...
The government has announced plans to allow customers to get cashback from shops without needing to make a purchase. At the moment, cashback is only available to those who buy goods. The new proposals have been put in place to help protect the UK’s cash system following a steady decline in the use of cash. This process has accelerated
Closing a limited company
22/10/2020 - More...
There are a number of reasons why you may decide to close your limited company. This could be because a limited company structure no longer suits your needs, your business is no longer active, or the company is insolvent. You will usually need the agreement of all the company’s directors and shareholders to close down the company. The
Brexit countdown importers
22/10/2020 - More...
As we have reported previously, the UK government has confirmed that it will neither accept nor seek any extension to the Brexit transition period which expires on 31 December 2020. The EU has formally accepted this position. This means that the process for importing goods from the EU will change from 1 January 2021. HMRC has published
Brexit countdown exporters
22/10/2020 - More...
The Brexit transition period is due to end on 31 December 2020 and this means that the process for exporting goods to the EU will change from 1 January 2021. Current guidance published by HMRC states that from 1 January 2021, businesses will need to make customs declarations when exporting goods to the EU. This is what you currently have
Clock ticking on the Annual Investment Allowance
22/10/2020 - More...
The Annual Investment Allowance (AIA) allows for a 100% tax deduction on qualifying expenditure on plant and machinery to be deducted from your profits before tax. The relief is normally capped at £200,000 per annum but was temporarily increased to £1 million for a 2-year period from 1 January 2019 to 31 December 2020. This means that
Distributions in anticipation of striking off rules
22/10/2020 - More...
The Extra Statutory Concession (ESC) - C16 was a well-used extra-statutory concession that allowed company directors to treat final distributions as a capital disposal and close down their business in an efficient manner. ESC C16 was withdrawn in March 2012 and replaced by s1030A Corporation Tax Act 2010 (CTA 2010) provisions. This move
Starting rate of Income Tax for savings
22/10/2020 - More...
In the current tax year, anyone with taxable income of less than £17,500 will have no tax to pay on their savings income - interest received. This figure is calculated by adding the £5,000 starting rate limit for savings (where 0% of the interest is taxable) to the current £12,500 personal allowance. However, this £5,000 starting rate
When you can or can’t use the VAT Cash Accounting Scheme
22/10/2020 - More...
Under standard VAT accounting, VAT is payable on sales whether or not the customer has paid and can lead to a claim for Bad Debt Relief. Under the Cash Accounting Scheme, VAT does not need to be paid over until the customer has paid. A business can enter this scheme provided their estimated VAT taxable turnover for the next VAT year is
New financial support measures announced
22/10/2020 - More...
The Chancellor, Rishi Sunak, has delivered his third major statement to the House of Commons in less than a month. This followed the Winter Economy Plan on 24 September and further announcements on 9 October that expanded the scope of the Job Support Scheme and introduced new grants for businesses forced to close because of local or
Gaming behind the wheel?
20/10/2020 - More...
Unbelievably, it has been illegal to make phone calls or text while driving a car, but not illegal to play games or take photos. Clearly, this loophole is begging to be closed and new legislation proposed, 17 October 2020, will aim to do just that. A Government announcement says: People using a hand-held mobile phone in all
Last orders please…
19/10/2020 - More...
From 1 January 2021, UK businesses that export, import or transport goods to and from the EU will need to comply with a number of new regulations. Inevitably, some will fall short and these will create delays, in your goods reaching EU customers, the goods of EU suppliers reaching you, and transport drivers spending more time than is
New Freeports to cope with Brexit
15/10/2020 - More...
The government is moving ahead with plans to build free trade zones - known as Freeports - across Britain after Brexit. Freeports are a special kind of port where normal tax and customs rules do not apply. In their place, simplified customs procedures and duty suspensions on goods applies. The initiative would allow firms to import
Students warned of tax scams
15/10/2020 - More...
HMRC is warning new students starting university that they could be targeted by scammers trying to steal their money and personal details. As new students start the academic year they can be particularly vulnerable to tax scams. Coupled with an increase in remote working due to the pandemic can leave students particularly exposed to the
Applying for Green Homes Grants
15/10/2020 - More...
Home owners and landlords in England can apply for a grant to make their home more energy efficient. The Green Homes Grant will cover at least two-thirds of the cost up to £5,000 per household. For low income households these grants will cover all costs up to £10,000. The scheme runs until 31 March 2021. The Green Homes Grants provides
New three-tier COVID-19 alert levels
15/10/2020 - More...
On 12 October, the Prime Minister announced the introduction of a new three-tier system of local COVID-19 alert levels across England. The new system sets the levels at medium, high and very high based on local transmission rates. The legislation to write the new three-tier system into law was approved by Parliament on 13 October
Are your construction clients ready for reverse charge changes?
15/10/2020 - More...
New VAT rules for building contractors and sub-contractors come into effect from 1 March 2021. The new rules will make the supply of construction services between construction or building businesses subject to the domestic reverse charge. The reverse charge will only apply to supplies of specified construction services to other businesses
Companies House warn of delays in postal submissions
15/10/2020 - More...
Company filing deadlines were extended for companies with filing deadlines between 27 June 2020 and 5 April 2021. Companies House is warning of delays in postal submissions and have said it is taking much longer than usual to process paper documents, forms and letters sent by post. Accounts filed on paper need to be manually checked and
Donating land, property or shares to a charity
15/10/2020 - More...
There are special rules in place for taxpayers who gift land, property or certain shares to charity. This can include Income Tax and Capital Gains Tax (CGT) relief provided all the necessary conditions are met. There is no Income Tax relief on donations to community amateur sports clubs (CASCs). Income Tax relief Where qualifying assets