HMRC has announced that the introduction of the domestic reverse charge for construction services will be delayed until 1 March 2021 due to the impact of the coronavirus pandemic. What do you need to know? What is the reverse charge? Rules are being introduced to tackle VAT fraud within the construction industry. The reverse charge … Continue reading VAT reverse charge for construction services delayed due to coronavirus
The government has brought forward legislation to zero rate electronic publications in a move to make them more affordable for people confined to their homes or affected financially by coronavirus. Zero-rating was originally due to take effect on 1 December 2020 but now applies from today, 1 May. Zero-rating applies to the sale of: books … Continue reading VAT Good news
There are restrictions on claiming the employment allowance (EA) from April 2020. What are they, are you fully up to speed with the basic rules and what enforcement risks do you run? Basic rules The employment allowance (EA) was introduced in April 2014 to support businesses and charities by cutting the cost of employers’ NI, so encouraging … Continue reading Changes to the employment allowance.
With a view to keeping you the right side of an HMRC penalty the deadlines for April 2020 are as follows: 5th April Last date day of 2019/20 tax year. Tip: Final chance to top up ISAs and pay pension contributions for 2019/20. Last date for sole traders and partnerships to incur capital expenditure on … Continue reading HMRC April Deadlines
The major features of this budget are: Changes to National Insurance will be introduced with the threshold increased to £9,500 and the Employment Allowance to increase to m£4,000. The rate of Corporation Tax is to be frozen at 19% as previously announced The tax credit for expenditure on research and development is to increase from … Continue reading Budget 2020 a first look
Business entertainment Income tax, corporation tax and VAT legislation each contain a similar rule which blocks a tax deduction for “business entertainment” costs. This includes hospitality of any sort. A common example is where a business provides food and drink for an individual, say a customer. However, not all such supplies are business entertainment. Tip. The exception … Continue reading When is providing food and drink to customers deductible?
With a view to keeping you the right side of an HMRC penalty the deadlines for March 2020 are as follows: 1st March Last date to pay any self-assessment tax owing for 2018/19 before an automatic 5% late payment penalty applies. Tip: If you agree a "time to pay arrangement" before this date HMRC will … Continue reading HMRC March Deadlines
An increase to the NI threshold has been confirmed ahead of the budget on 11 March. How will this affect your clients? Whats changing? From 6th April 2020 taxpayers will enjoy an NI threshold of £9,500 per year. During the next tax year, employees will save £104 as a result of these changes, and the self-employed … Continue reading NI contributions threshold increased to £9,500
In 20 years the UK plans to ban the manufacture of petrol/diesel cars so that this switch is more a choice of when rather than if. There were just 3,500 electric cars registered in the Uk in 2013 and now there are 230,000 so the technology and infrastructure is rapidly developing to make owning an … Continue reading Should I go electric with my next car
If you’re expecting a sizeable self-assessment tax bill for 31 January 2020. How and when can you reduce this, and if you can’t how can you manage the payment in the most cost-efficient way? HMRC’s pound of flesh If you’re late paying either of your January or July instalments of tax, HMRC will charge interest … Continue reading How to avoid late HMRC payment penalties and interest