HMRC increase interest rates on late tax bills From 5 July, HMRC will increase interest rates on late tax bills. This follows the Bank of England’s decision to raise the base rate to 1.25%. Furthermore, HMRC confirmed that interest rates will rise by a further 0.25% on late tax bills. As a result, late payment interest
Dividends – When to pay tax Dividends are shares of profit paid out by limited companies. A company’s shareholders receive dividends when it makes a profit. A limited company can only declare dividends if it makes enough profit after paying all its liabilities and expenses. The amount of dividends relates to how many shares a
Interest rates increase for late tax bills HMRC has confirmed interest rates will rise by 0.25% on late tax bills. The decision comes after the Bank of England increased the base rate to 1% last week. From 24 May 2022, the late payment interest rate will increase to 3.5% from 3.25%, the highest rate since
R&D Tax Relief – Does your business qualify? Research and Development Tax Relief (R&D) is a relief that businesses may be able to claim if they incur expenses whilst developing or enhancing existing products, services or processes. Many different businesses can claim R&D relief if they seek to research and develop an advancement in their
NFT seized by HMRC for first time in £1.4m fraud investigation HMRC has seized three non-fungible tokens (NFT) as part of an investigation into a £1.4m tax evasion fraud. The investigation into a suspected organised VAT repayment fraud, saw three NFTs seized. The fraud reportedly involved 250 fake companies. Fraud Investigation HMRC has arrested three people
Statutory Residence Test – Do you owe tax for your stay in the UK? HMRC has released updated guidance on how the Statutory Residence Test (SRT) will operate in relation to the effects of the COVID-19 pandemic. The Statutory Residence Test legislation allows for an unexpected day spent in the UK to be disregarded if there are exceptional circumstances beyond
HMRC announces self-assessment tax return penalty waivers HMRC has announced it is waiving late filing and late payment penalties for self-assessment tax return customers. The deadline for filing and paying a 2020/21 self-assessment tax return remains 31 January 2022. However, the penalty waiver will mean that taxpayers can submit their return online by 28 February
HMRC self-assessment reminder HMRC is reminding self-assessment taxpayers to declare Covid-19 grants on their 2020/21 tax return. This includes Self-Employment Income Support Scheme (SEISS) grants, which are deemed taxable income. It has been reported that more than 2.7 million people claimed at least one of the SEISS grants, up to 5 April 2021. During the
Over the course of the year, the Chancellor has announced some key personal tax updates in both his Spring Budget and Autumn Budget. Many changes are due to take effect from 2022/23. Tax rates and allowances 2022/23 As announced in the Spring Budget earlier this year, the personal allowance of £12,570 and the basic rate
HMRC cryptocurrency update HMRC will reportedly start issuing ‘nudge’ letters to cryptocurrency investors as a way of encouraging people to check they have paid the correct amount of tax. Investors with cryptoholdings are being urged to check if they have paid the correct amount of either capital gains tax or income tax on their holdings.
UK tax officials have seized £26.5m from non-existent businesses run by an ‘entrepreneur’ who used the Coronavirus Job Retention Scheme to make fraudulent claims. According to the Financial Times, the ‘entrepreneur’ who is believed to be a 44-year-old man, used four companies to create seven fake employees to gain access to furlough funds. To
Tax avoidance concerns have been raised following the biggest document leak to date. The ‘Pandora Papers’ include 12 million documents revealing offshore deals and investments of current and former world leaders, politicians, business leaders, and celebrities who have used tax avoidance schemes to hide their wealth. A number of high-profile individuals are included in
Applications for the fifth SEISS grant are open for online submissions. All those who are eligible for the fifth SEISS grant and wish to make a claim, must do so before the scheme closes on 30 September 2021. Eligibility criteria Eligibility will be the same as for the fourth grant and will be based on
The Corporate Criminal Offence (CCO) legislation was introduced in September 2017 to help prevent the facilitation of tax evasion within businesses. The legislation holds companies and partnerships to account if anyone acting on their behalf helps to facilitate tax evasion. Facilitating tax evasion is a criminal offence and is subject to sanctions. All companies and
A man, who was arrested in 2018 following a tax investigation, has been ordered to repay £5.5m within three months or face a 10-year prison sentence. The man was arrested in 2018 after he was found to have falsely taken £5,952,339 in Income Tax, National Insurance contributions and VAT, between May 2008 and May 2016.
Applications for the fifth SEISS grant are now open for online submissions. HMRC has confirmed that submissions can now be made online until the scheme closes on 30 September 2021. Eligibility critieria Eligibility will be the same as for the fourth grant and will be based on the individual’s tax returns. There are no requirements
Earlier this month, the Stamp Duty Land Tax (SDLT) holiday began to phase out. From 1 July 2021, the SDLT NIL rate was lowered from £500,000 to £250,000 on residential homes. The Stamp Duty Land Tax holiday will now only apply to residential homes costing £250,000 or less. The government introduced the holiday in June
The fifth Self-Employment Income Support Scheme (SEISS) grant is due to open for claims from mid-late July. Despite the fifth grant encompassing a five-month period from 1st May to 30th September, individuals will only receive three months’ worth of average trading profits for this five-month period. Eligibility critieria Eligibility will be the same as for
The Financial Times has obtained data through a freedom of information act (FOI) request, which states that companies have repaid £709m from furlough claims that have been made under the Coronavirus Job Retention Scheme (CJRS). According to the data, an additional £319m has been reclaimed from companies that had mistakenly claimed the incorrect amount. As
Since the introduction of the furlough scheme back in March 2020, more than £60 billion has been claimed through the furlough scheme. Whilst the furlough scheme has been used to protect over 11 million jobs, there have been instances where the scheme has been exploited. Last month a couple from Yorkshire were arrested as part
HMRC have recently announced that they have come across several issues whilst processing a number of 2020/21 self-assessment tax returns, due to apparent inconsistencies in claims from previous SEISS grants. The Institute of Chartered Accountants have produced a report into the matter stating that, HMRC have been unable to automatically process numerous 2020/21 self-assessment tax
The Corporate Criminal Offence (CCO) legislation was introduced in September 2017 to help prevent the facilitation of tax evasion in businesses. The legislation holds companies and partnerships to account if anyone acting on their behalf helps to facilitate tax evasion. Facilitating tax evasion is a criminal offence and is subject to sanctions. The CCO legislation
Selling a property with a dedicated home office? Check the capital gains tax implications Individuals planning to sell their main home should be aware of the potential capital gains tax implications, when selling their property with reference to a dedicated home office. The potential risk to sellers surrounds Principal Private Residence Relief (PPR) and the
According to HMRC, over the last year, more than 50,000 small businesses made Research and Development tax credit claims. Overall, the tax relief came to a total of around £6 billion, half of which was claimed by small companies. R&D tax relief allows for small and medium sized enterprises (SMEs) to deduct an extra 130%
Last year, the government introduced the official Coronavirus Job Retention Scheme (CJRS) to offer support for those businesses who have been forced to close during the pandemic. The scheme allows for employers to claim for 80% of employee’s wages for hours not worked. From July 2021, employers will be required to contribute towards their employees
The UK Court of Appeal ruled in favour of General Electric in a court case against HMRC on 14th April 2021, following HMRC’s claims that General Electric had made a “fraudulent misrepresentation” in a past agreement. The case looked back on the agreement made in 2005 between GE and HMRC, where HMRC agreed to grant
The Corporate Criminal Offence (CCO) legislation was introduced in September 2017 to help prevent the facilitation of tax evasion in businesses. The legislation holds companies and partnerships to account if anyone acting on their behalf helps to facilitate tax evasion. Facilitating tax evasion is a criminal offence and is subject to sanctions. The CCO legislation
The fourth Self-Employment Income Support Scheme (SEISS) grant is due to open for claims from late April. HMRC has confirmed it will be contacting those self-employed workers who are eligible for the fourth grant, by either email, letter or within the online service. Eligibility will be based on the individuals tax returns. There are no
Earlier this month, HMRC launched a new taskforce of 1,250 staff to investigate fraudulent furlough claims and Eat Out to Help Out claims. Investigators will be cross-referencing claims under the furlough scheme with other records, such as the Eat Out to Help Out scheme. As part of HMRC’s investigations, a number of businesses have been
HMRC has released the latest cryptocurrency guidance on the tax treatment of crypto assets. The guidance has been issued as part of an updated manual, which depicts the tax treatment of cryptoassets. Part of HMRC’s manual features guidance relating to income from staking in proof-of-stake networks. This is the first time that HMRC has released
The furlough scheme has been a lifeline for businesses of all sizes throughout the coronavirus pandemic. However, many have exploited the furlough scheme by making fraudulent claims or failing to review their initial claim. According to HMRC data, mid-sized businesses claimed £9.49 billion through the furlough scheme, as of 31st January 2021. Research has found
The UK government are in the final stages of implementing a new notice in the 2021 Finance Bill, which will allow HMRC to issue Financial Institution Notices (FIN’s). This notice will give HMRC the power to request information from financial institutions for the purposes of checking the position of a taxpayer, without the need for approval
Last year, the government introduced the official Coronavirus Job Retention Scheme (CJRS) to offer support for those businesses who have been forced to close during the pandemic. The scheme allows for employers to claim for 80% of employee’s wages for hours not worked. Unfortunately, furlough fraud has proven to be a widespread issue over the
As part of the ‘Tax Day’ consultation announcements, HMRC outlined that changes to the transfer pricing documentation rules will allow for more targeted compliance interventions. Changes to the rules will also provide businesses with greater certainty whilst aligning with the requirements of global tax administrators. HMRC figures state that transfer pricing compliance activity has raised
Yesterday (23rd March) the government published a series of consultations which outlined the plans to modernise Britain’s tax system, whilst rectifying flaws that cost £31bn every year. Here are some of the key announcements: Freelancers/self-employed to be taxed like employees The government will review the ‘pay-as-you-go’ system to start taxing self-employed workers in the same
HMRC can agree time to pay arrangements with those individuals who cannot pay their self-assessment tax bill on time. A time to pay arrangement can be set up using HMRC’s online service, providing the following criteria is met: Owe £30,000 or less Tax returns are up to date There are no other payment plans or
Last week the Chancellor revealed, in the 2021 Budget, inheritance tax allowances will be frozen for five years until 2026. The freeze has been announced following the governments plans to raise funds to pay back the debt incurred during the coronavirus pandemic. A five-year freeze on inheritance tax allowances will bring in £985m in revenue,
HMRC figures show that approximately 1.1million taxpayers had still not filed their self-assessment tax return on 2nd March 2021. These taxpayers have already incurred a £100 fine and will face a 5% late-payment penalty, if they do not take action by 1st April. HMRC has issued more than £100million in fines to those taxpayers yet
HMRC will be writing to 100,000 taxpayers who became newly self-employed in 2019/20. HMRC aims to protect the Self-Employment Income Support Scheme from fraud and will therefore ask these taxpayers to complete a pre-verification check. Taxpayers will be asked to confirm their identity as well as providing evidence of trade. Selected taxpayers will receive a
HMRC has issued 11,000 people with letters questioning their claims for self-employment support grants. Last year, the UK’s tax authority sent 24,000 similar letters to claimants who said they had stopped trading. Letters have been sent to those who said they had stopped trading either on their 2019/20 self-assessment tax return or by amending their
HMRC has lost the long-running tax case involving the employment status of TV presenter, Kaye Adams. The decision was finalised following an Upper Tribunal, which stated that she was not an employee for the BBC and therefore IR35 rules do not apply. The BBC required Adams’ services as a presenter on the Kaye Adams Programme,
HMRC has announced that self-assessment taxpayers will not be charged an initial 5% late payment penalty, if they pay their tax or set up a Time to Pay arrangement by 1st April. A Time to Pay arrangement allows for payments to be made in monthly installments up until January 2022. Whilst the late payment penalty
HMRC published a new policy briefing earlier this week, which outlined the ‘compliance principles’ for implementing off-payroll working (IR35) rules. The guidance reiterates the employer’s responsibility to determine the individual’s employment status, under the new IR35 rules. HMRC has confirmed they will not be issuing any penalties in the first 12 months, for any inaccuracies.
Over the past year, HMRC’s investigations into online sellers using platforms such as Amazon and eBay, decreased drastically amid concerns over tax evasion. Tax evasion from online sellers has been a concern for HMRC as VAT evasion by overseas sellers on online platforms has cost HMRC up to £1.5billion in lost tax revenue in 2015/16
Last year, the government automatically deferred VAT payments for businesses between 20th March 2020 and 30th June 2020, during the coronavirus pandemic. The VAT payments were deferred until 31st March 2021 however, businesses do not need to pay the full amount by the end of March, instead they can opt into a new payment scheme
Five international tax enforcement leaders known as the Joint Chiefs of Global Tax Enforcement or J5, have formed an alliance to combat tax evasion. The J5 includes, the UK, the US, Australia, Canada and the Netherlands. The leaders meet on a yearly basis to collaborate on tackling common tax evasion issues. This year the meeting
Under the pension freedom rules, introduced in 2015, anyone over the age of 55 is able to withdraw as much cash as they like, whenever they like, from their retirement savings. In the last three months of 2020, nearly £26million was reclaimed from HMRC in pension savings however, many savers are unaware that they may
Off-payroll working (IR35) rules will be changing on 6th April 2021. From this date the rules will change regarding how companies engage with individuals through personal service companies. Under the new IR35 rules it will be the employer’s responsibility to assess the individual’s employment status. This change will affect all medium and large sized businesses,
HMRC has recently published a list of employers who have made a claim under the Coronavirus Job Retention Scheme. The list represents those employers who have claimed for periods in December 2020. As of February 2021, HMRC will publish a list of employers claiming under the scheme along with an indication of the value being
Earlier this week, HMRC announced that there would be no late filing penalty for Self-Assessment (SA) customers who file online by 28th February 2021. The late filing penalty easement applies to forms SA100 (individual tax returns) however, SA returns filed by paper in February will not benefit from the easement. HMRC has also confirmed its
Many are facing higher tax bills this year as deferred bills from last year are beginning to catch up, this has resulted in taxpayers accumulating £4bn in debt with HMRC. The coronavirus pandemic has had a lasting effect on the UK economy, with many people out of work and businesses being forced to temporarily close.
HMRC have increased the number of investigations into families who claim child benefits. Introduced in 2013, the High Income Child Benefit Charge, requires higher earners, of more than £50,000, to pay back a percentage of their child support payments. For those who earn over £60,000, the entire amount must be repaid. This is based on
In recent months, investors in the cryptocurrency Bitcoin, have made fortunes from their dealings. One crypto winner, who invested in Bitcoin over the past 3 years, now has £150,000 worth of the cryptocurrency. The plan is to cash in on the winnings, but are people aware of the tax implications they could face? For tax
The UK’s transitional period out of the European Union officially ended on 31st December 2020. New rules were implemented on 1st January 2021, following the UK’s Free Trade Agreement with the EU. Since leaving the EU, the UK no longer implements DAC 6, the European legislation for disclosing arrangements. Under UK law, arrangements must be
The furlough scheme was launched in March 2020 in an effort to minimise job losses during the coronavirus pandemic. Under the scheme, employees will receive 80% of their wages, up to a total of £2,500 a month, off the government. At its peak in May last year, the furlough scheme was supporting 8.9 million jobs.
HMRC has published a list of 139 employers who failed to pay their employee’s minimum wage. During 2016 to 2018, HMRC discovered 139 companies had failed to pay a total of £6.7 million to over 95,000 employees. The most common reason for minimum wage breaches was employers expecting low paid staff to cover work costs,
Self-Assessment tax returns are due on 31st January 2021 however, HMRC have stated that late filing fines will not be administered this year, if people can prove they filed late due to implications from the coronavirus pandemic. HMRC are encouraging people to file their tax returns on time, even if they cannot pay the amount
HMRC are investigating large companies who they believe could be wrongly paying less UK tax, due to their cross-border financial arrangements. HMRC have started a criminal investigation into businesses that allocate their profits between different countries, in connection with transfer pricing. Transfer pricing can legally allow for connected companies to minimise their tax liabilities by
As the deadline for self-assessment tax returns approaches, people are being warned to be aware of scams from fraudsters claiming to be HMRC. Criminals are taking advantage of the self-assessment deadline by sending fake emails and texts, along with fake calls offering ‘tax rebates’ and ‘refunds’ as a way of gaining personal information, in particular
In a written statement from the Financial Secretary of the Treasury to parliament, it was announced that a temporary tax easement will be introduced on the cycle-to-work schemes. The cycle-to-work schemes benefit from a tax exemption on bicycles and safety equipment provided to staff, on the provisions that they are used ‘mainly for qualifying journeys’
In recent months, HMRC has been investigating fraudulent Research and Development (R&D) tax relief claims. In November 2020, HMRC arrested three men involved in a fraudulent tax relief claim for £29.5 million. Through one of the individual’s companies, the three men tried to acquire tax relief on £137 million, for the purposes of developing a
Professional bodies, including The Chartered Institute of Taxation, are urging trustees and agents to update their details on the Trust Registration Service or make a ‘no change’ declaration by 31st January 2021. HMRC have provided clarification for completing the 20.1 tick box question on the Trust and Estate return (SA900). Trustees and agents should ensure
Off-payroll working rules (IR35) will be changing on 6th April 2021. From this date the rules regarding how companies engage with individuals through personal service companies, will be affected. See our article on ‘New changes to off-payroll working rules (IR35)’ for further details on the changes. Companies should be aware of the changes to the
The new Income Tax exemption came into effect from 8th December 2020 in relation to employers providing their employees with a coronavirus antigen test. This new temporary exemption will ensure that employees who are given a relevant coronavirus antigen test, will not be liable to an Income Tax benefit in kind charge. A benefit in
From 1st April 2021, HMRC have confirmed that all companies will be required to complete a supplementary page when claiming for the following: Small and medium-sized enterprises (SME) Research and Development Relief SME Payable Tax Credit SME Research and Development Expenditure Credit The supplementary page (CT600L) will need to be completed when submitting the corporation
Corporation tax returns are due 12 months after the accounting period ends. For many companies the accounting period ends on 31st December therefore, 31st December 2020 will be the filing deadline for accounting periods ending on 31st December 2019. HMRC are urging businesses to file their corporation tax returns by the relevant deadline. Due to
Businesses that import goods regularly into Great Britain, can apply for a duty deferment account, taking effect from 1st January 2021. A duty deferment account delays payment of most customs and tax charges, for example: Customer Duty Excise duties Import VAT Duty deferment accounts allow for importers (or their representatives) to make one monthly payment
HMRC has updated its guidance on the information published for employers who make a claim under the Coronavirus Job Retention Scheme (CJRS) from 1st December 2020. HMRC is providing this information in the hope that it will deter fraudulent claims. The new guidance includes the information that HMRC will publish on employers who claim under
HMRC has updated its guidance for VAT-registered businesses who deferred their VAT between 20th March and 30th June 2020, due to the Covid-19 pandemic. Businesses who still have payments to make can: Pay the full deferred VAT amount on or before 31st March 2021 Opt into the new payment scheme that launches in 2021 Contact
The Low Income Tax Reform Group (LITRG) has welcomed the decision to extend the late loan charge spreading elections up to 31st December 2020. The original deadline was 30th September 2020, but was missed by a number of people. A Statement of Practice has been published by HMRC that outlines how they will accept late
HMRC have been pushed to acknowledge that ‘normal’ Christmas parties are unlikely to go ahead this year. As some employers are opting to throw a virtual Christmas party, clarification has been needed as to whether the same rules apply, regarding tax relief. It has now been confirmed by HMRC, that employers will be able to
HMRC have issued a reminder to anyone who is yet to pay Capital Gains Tax if they sold a second home during the 2019 to 2020 financial year. Any profit made from selling a second home within the UK during 2019 to 2020, needs to be declared on a Self Assessment tax return by 31st
Off-payroll working rules (IR35) are set to change on 6th April 2021. From this date the rules will change regarding engaging with individuals through personal service companies. These changes will effect medium and large sized businesses, as well as all public authorities. Under the new changes, organisations will be responsible for determining whether the off-payroll
Are ‘Virtual’ Christmas parties eligible for tax relief? The Association of Taxation Technicians (ATT) is asking HMRC to clarify whether virtual Christmas parties fall under the tax relief this year. As a result of the coronavirus pandemic, Christmas parties are set to be a little different this year as usual work functions will not be
HMRC have issued guidance on penalties that might be incurred where there is failure to notify of an overpayment made under certain coronavirus support schemes, the following schemes are included: Coronavirus Job Retention Scheme, Self-Employment Income Support Scheme and Eat Out to Help Out Scheme. Failure to notify if you have received a coronavirus support
The government has proposed a draft legislation to introduce a Plastic Packaging Tax, which would take effect from April 2022. The aim of the tax is to provide businesses with an economic incentive to start using recycled material when manufacturing plastic packaging. The tax will increase levels of recycling and plastic waste collection by increasing
Coronavirus Job Support Extended by Chancellor On 5th November 2020, the Chancellor announced in the House of Commons that he would be extending the Furlough Scheme and the Self-Employed Income Support Scheme, following the news of a second national lockdown for England. The Furlough Scheme was set to end in December 2020 however, it has
As the coronavirus pandemic continues, it is looking highly unlikely that Christmas parties will be the same this year. Under normal circumstances employers who hold annual events, such as Christmas parties, for their employees may be able to benefit from a limited tax relief under specific criteria. Whilst there is no specific tax legislation that
The government’s working from home tax relief has been reviewed due to the coronavirus pandemic. With more people being required to work from home due to local restrictions and national lockdowns, HMRC have updated their system to allow people to claim the entire tax year, regardless of the period of time spent working at home.
The government introduced the Eat Out to Help Out scheme in August which offered 50% discount of up to £10 per person. The aim of the scheme was to boost the economy after the national lockdown by allowing businesses in the hospitality sector to offer discounted meals on Mondays, Tuesdays and Wednesdays. Whilst this scheme
In a recent announcement, HMRC have confirmed that Enterprise Management Incentive schemes (EMI) will continue in the UK once the Brexit transition period has ended. The scheme will operate under UK law from 1st January 2021. EMI is a scheme that allows for some companies to offer their employees a share option up to the
Earlier this week the Chancellor, Rishi Sunak, made a statement to the House of Commons to offer support to businesses who are struggling as a result of further restrictions required, due to the coronavirus pandemic. In these challenging times the Chancellor has acknowledged that additional support is required in order to keep people in jobs
HMRC have updated their ‘How to contact HMRC to discuss a time to pay arrangement’ section on their website. New information includes how it may be possible to set up a payment plan online, for a self-assessment tax bill, without contacting HMRC. A payment plan, for a self-assessment bill, can be set up to spread
HMRC will be migrating their VAT customers from VAT Mainframe on to their Enterprise Tax Management Platform. These changes will take place from March 2021. The new changes do not affect any customers already signed up to Making Tax Digital, as their records are already stored on the Enterprise Tax Management Platform. Any VAT businesses
Keep up to date with the key announcements made this past week. Top Slicing Relief on life insurance policy gains Following on from the Silver case (see below), changes to Top Slicing Relief were included in the Finance Act 2020. In the wake of this change, the Chartered Institute of Taxation have released a update
Keep up to date with the key announcements made over the last 2 weeks. Winter Economic Plan The Chancellor, Rishi Sunak has laid out the latest support package for the ongoing coronavirus pandemic. In his speech to the house of commons yesterday, Sunak confirmed that the furlough scheme would indeed end on 31st October as
Despite the uncertainty of the coronavirus pandemic, HMRC look set to push on with the proposed IR35 changes with updates to aspects of its Employment Status Manual. The changes brought in by IR35 have already been delayed by a year as a result of the coronavirus pandemic and it would appear that HMRC are currently
Today in his speech to the House of Commons the Chancellor, Rishi Sunak announced his latest plans to help protect jobs amidst the ongoing coronavirus pandemic. Whilst the primary goal to protect people’s jobs remains unchanged, Mr. Sunak has confirmed that the way to approach this must change. Mr. Sunak has confirmed that the furlough
The Treasury have announced that the autumn budget, which was planned for October, has now been scrapped. This coincides with the recent announcements made by the Prime Minister, introducing stricter restrictions on England. The autumn budget, which would have laid forth a plan to potentially start recouping the costs of the pandemic, has been scrapped
Keep up to date with the key announcements made this past week. Loan Charge deadline looms large The deadline for settling the highly controversial disguised remuneration loan charge is fast approaching. Following the findings of the report from Sir Amyas Morse, HMRC relented and narrowed the scope of the loan charge, removing a large number
Given the ongoing coronavirus pandemic a number of UK office workers have now been working from home for periods of up to 6 months, and for some this looks set to continue long into the future. Employees should be alert to possible tax allowances they could receive as a result of this lengthy stint working
HMRC have published guidance on when you can claim reliefs to pay less customs duty and VAT if you re-import goods to the UK and EU. The relief which is known as Returned Good Relief, can be claimed where goods are re-imported into the UK or EU that had been previously exported. Goods must have
Keep up to date with the key announcements made this past week. Coronavirus Job Retention Scheme changes The latest September updates to the Coronavirus Job Retention Scheme have now taken effect. The updates will see the total contribution provided by the scheme fall from 80% of employees wages to 70% up to a cap of
Anyone making payments via bank transfer (BACS) will need to use companies house updated bank details from 1st September 2020. Following on from the recent change in status of Companies House, from a trading fund to a central government organisation, Companies House must use bank accounts which come under the government bank account scheme. Taxpayers
It has recently been reported by the Institute of Chartered Accountants in England and Wales (ICAEW) that employers and agents who have submitted forms P11D and P11D (b) on time have been receiving penalty warning letters from HMRC. HMRC offered the following explanations to the ICAEW: For online filings: processing delays could include, processing delays
From today (September 1) there will be changes to the way that the Coronavirus Job Retention Scheme (CJRS) makes payments to employers. What is changing? For the period from 1 September to 30 September the schemes grant will reduce from the previous 80% down to 70% of employees’ pay up to a cap of £2,187.50
Keep up to date with the key announcements made this past week. HMRC announce new payment for people self-isolating in highest risk areas The Government has announced a new payment for people on low incomes in areas with high rates of COVID-19 who have been forced to self-isolate and can’t work from home. The scheme
The Association of Tax Technicians have announced that HMRC issued the first wave of Coronavirus Job Retention Scheme (CJRS) compliance letters last week. The action comes as HMRC moves past it’s transaction review phase of the scheme. The initial set of letters, which were due to arrive on doormats from 18th August, will be asking
In the recent case of Legends Leisure Ltd v Revenue & Customs, the first tier tribunal have found that the illness of a family member is no excuse for late filing of pay as you earn (PAYE) real time information (RTI) returns. Despite the fact the appellant (Legends Leisure Ltd) never made a formal appeal
Keep up to date with the key announcements made this past week. HMRC has produced updated guidance on disguised remuneration settlement terms HMRC have updated a number of their guidance pages on disguised remuneration tax schemes. The changes relate to those made to the loan charge in the Finance Act 2020. The updates come as
The government introduced Coronavirus Job Retention Scheme (CJRS) on the 20 March 2020 to combat a potential loss of UK jobs across all sectors during the coronavirus pandemic. Originally, the CJRS had been set to end on 30 June 2020, however, following lobbying from various industry groups, the government extended the scheme and it is
Tax Update 7/8/2020 Keep up to date with the key announcements made this past week. Job Retention Bonus Clarification for Employers HMRC have produced a policy paper on the eligibility requirements for employers seeking to claim the job retention bonuses. The updated guidance provides clarifications as to when claims can be submitted, claims after the
Job Retention Bonus Clarification for Employers Following the announcement during the summer economic update by the Chancellor, Rishi Sunak, HMRC have published a policy paper on the eligibility requirements for employers seeking to claim the job retention bonuses. Employers will be able to claim for employees who: Were furloughed and had a Coronavirus Job Retention
General Electric accused of $1 billion tax fraud In an astonishing turn of events HMRC have gone from praising General Electrics (GE) tax department to alleging that the company has committed tax fraud. In 2012 Will Morris, the companies director of tax policy was recognised for his role in “informing the public debate on large
Keep up to date with the key announcements made this past week. Covid-19 support scheme overpayments HMRC has published two new compliance check factsheets, these factsheets cover assessments, interest and penalties where grants under the coronavirus support schemes have been over paid and fail to notify HMRC about the overpayment. CC/FS48 Job Retention Scheme –
Keep up to date with the key announcements made this past week. Finance Bill 2020 On the 22nd July the Finance Bill 2020 received royal accent and became the Finance Act 2020 Finance Bill 2021 A day earlier on the 21st July, HMRC published the draft legislation for the next finance bill. The draft provisions,
Keep up to date with the key announcements made this past week. Summer Economic Statement In the long awaited summer statement, the Chancellor Rishi Sunak announced a plethora of new measures. Included in these measures where the ‘Eat Out Help Out’ scheme. Customers with receive 50% off, up to £10 per head, on meals out
Following what HMRC are describing as a human error, when this years automatic renewals notices were sent out over 1 million of them had omitted income details. Further letters have subsequently been sent to those effected but we are now urging anyone receiving tax credits to carefully check their annual renewals before the deadline on
With the deadline for the deferral of VAT payments due to Coronavirus having now passed on 30 June. Businesses that made use of the deferral scheme will now need to reinstate their direct debit mandates or potentially face late payment charges. The VAT payment deferral has meant that all UK VAT-registered businesses had the option
The guidance on the CJRS has been updated, and new guidance has been published for calculating claims. The changes outlined mean that employers will be required to gradually take back responsibility for the salaries of any furloughed employees until the end of the scheme. A policy paper has been published by HMRC outlining changes to
On Friday 29 May, the Chancellor, Rishi Sunak, announced the gradual phasing out of the Coronavirus Job Retention Scheme (CJRS) with its complete conclusion set to take place on 31 October 2020. The changes outlined mean that employers will be required to gradually take back responsibility for the salaries of any furloughed employees until the
Personal Tax Update – 29/05/20 Keep up to date with the key announcements made this past week. Coronavirus (COVID-19): job retention scheme HMRC have provided further updates on the coronavirus job retention scheme (CJRS) for employees and employers to: explain that employers will be asked to detail separately the amounts for NIC, pension and wages
Personal Tax Update – 22/5/2020 In another information packed week, below is a summary of the key changes announced. Coronavirus (COVID-19): job retention scheme HMRC has updated the coronavirus job retention scheme (CJRS) guidance with several changes: the guidance note on ‘working out 80% of your employees’ wages to claim through the CJRS ’ has been
Keep up to date with the key announcements made this past week. In the ever-fast-moving world of tax announcements and developments, here we have pulled together some of the key changes announced this week. Coronavirus (COVID-19): job retention scheme extended until 31 October As at the 12 May, 7.5m employees had been furloughed under the
Keep up to date with the key announcements made this past week. In the ever-fast-moving world of tax announcements and developments, here we have pulled together some of the key changes announced this week. HMRC Guidance on job retention scheme HMRC has updated its guidance with various changes on the job retention scheme. A new section for
Chancellor Strengthens Businesses Position on Interruption Loan On 3 April the Chancellor, Rishi Sunak, gave a boost to businesses aiming to utilise the Coronavirus Business Interruption Loan Scheme (CBILS). Banks have been requesting personal guarantees for loans taken out through the CBILS, Sunak has now taken the decision to ban that requirement. The government is
Tax avoidance promoters are targeting returning NHS staff for their schemes. HMRC announced that they are aware of “unscrupulous promoters of tax avoidance schemes are targeting workers returning to the National Health Service (NHS) to help respond to the coronavirus (COVID-19) outbreak.” HMRC warned returning staff to avoid signing up to such schemes, which they
In the current emergency, anything that potentially reduces outgoing cash flow, including impending tax due dates for payment, is welcome. We have therefore outlined, opportunities within the current tax system that businesses should not overlook. Tax Deferral – HMRC Announcements Second Payment on Account instalment due on 31 July 2020 HMRC have confirmed that the
We have received a vast number of queries around how businesses should manage communications with HMRC and which lines of communications they should use, keeping in mind the new COVID-19 restrictions. The lockdown put in place by the government, aimed at slowing down the coronavirus spread, means that HMRC offices are closed. No physical letters
New measures have been announced by the UK government to help prevent businesses who are unable to meet debts as a result of the COVID-19 pandemic These measures are an attempt to help business owners from having to file for bankruptcy and putting their companies into liquidation. The new rules will allow companies undergoing restructuring
STS Europe are offering a 50% discount for new clients on our self-assessment tax return service. After last nights announcement, individuals have 4 weeks to submit their SA tax return in order to qualify for the self-employed pay support measures. We will prepare and submit any 2018/19 tax returns for those who are yet to
Tonight, Chancellor Rishi Sunak announced support for the self-employed. The scheme introduced is aimed to assist 95% of those who are currently self-employed. As stated during the chancellor’s briefing, the Government will pay those who are self-employed a grant of 80% of their average monthly profits over the last 3 years – up to a
