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16 June 2020

While our businesses have been able to maintain or increase profits there has been an unwritten acceptance that we will pay for current taxes out of future cash resources.

For example, if you are self-employed, payments on account for self-assessment taxes on current income are made two months before the end of each tax year and four months after the end of each tax year. And if...

14 June 2020

We reported late last month on the extension of the Coronavirus Job Retention Scheme to 31 October 2020 following the announcement by the Chancellor, Rishi Sunak. At the time, the Chancellor confirmed that further guidance on the workings of the amended scheme, which allows for flexible furloughing from 1 July, would be published on 12 June. This revised guidance has now been published.

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10 June 2020

The VAT bad debt relief rules allow businesses to claim bad debt relief and reclaim the VAT they have paid to HMRC. This can happen when an invoice has been issued to a customer and no payment has been received after an extended period of time (usually 6 months after the due date) has elapsed.

Under the normal VAT accounting rules, a business supplying goods or services usually accounts...

10 June 2020

HMRC’s guidance makes it clear that any business that makes an error in making a Coronavirus Job Retention Scheme (CJRS) claim must pay back any amount over-claimed. Any claims based on inaccurate information can be recovered by HMRC.

The CJRS application claim form has been updated and now allows businesses to advise HMRC if they have identified previous errors and over-claimed. If you...

10 June 2020

HM Treasury has published its weekly update (to close of business on 7 June 2020) on COVID-19 lending schemes designed to support businesses impacted by the pandemic.

Under the Coronavirus Business Interruption Loan Scheme (CBILS), 47,650 businesses have received funding so far, with lenders approving £9.56 billion. This was an increase of £640 million of funding to 1,807 businesses...

10 June 2020

Dictionary definitions of the word profit tend to include such synonyms as “advantage”, “financial gain” and “financial advantage”.

Longer explanations might say: the difference between the amount earned and the amount spent in buying, operating, or producing something. 

All true to some degree.

A wider definition might include that profits facilitate economic growth if...

10 June 2020

The VAT rule changes for building contractors and sub-contractors that were expected to come into effect on 1 October 2020 have been delayed for a further 5 months until 1 March 2021. The delay is due to the impact of the Coronavirus pandemic.

The new rules will make the supply of construction services between construction or building businesses subject to the domestic reverse charge....

10 June 2020

In the not too distant past business managers were prone to “empire building”. Increasing head count was more important than increasing productivity.

This bygone-age tendency has long slipped away but productivity is likely to remain as a leading consideration when businesses organise their use of human assets to run their businesses in the post-COVID economy.

Productivity should...

10 June 2020

As our readers will be aware, the Coronavirus Job Retention Scheme (CJRS), has been extended until 31 October 2020. There are a number of important changes to the way the scheme works that will start to come into effect from 1 July 2020, when employers can bring back furloughed employees to work part-time, for any amount of time and any shift pattern.

For any periods starting on or...

10 June 2020

The deadline for submitting the 2019-20 forms P11D, P11D(b) and P9D is 6 July 2020. Employees must also be provided with a copy of their P11D by the same date.

Employers pay Class 1A National Insurance contributions on most benefits. If you provided taxable benefits to staff or directors your business is likely to have a Class 1A employers’ NIC liability. The deadline for paying class...

10 June 2020

A voluntary VAT deregistration can be made if you do not expect your taxable turnover to exceed the VAT deregistration limit. The current deregistration limit is £83,000.

If you are running a small business that has been adversely affected by the Coronavirus pandemic, this could be an opportune time to consider whether or not to voluntarily deregister. The deregistration cannot be...

10 June 2020

Two separate £1,000 tax allowances for property and trading income were introduced in April 2017. If you have both types of income highlighted below then you can claim a £1,000 allowance for each.

The £1,000 exemptions from tax apply to:

  • If you make up to £1,000 from self-employment, casual services or hiring personal equipment. This is known as the trading allowance.
  • ...
03 June 2020

HMRC’s guidance on the Coronavirus Job Retention Scheme has been updated a number of times as the workings of the scheme evolve. The most recent update, on 29 May 2020, followed an announcement by the Chancellor, Rishi Sunak.

The Chancellor outlined further details on the extension of the scheme to 31 October 2020 and the introduction of flexible furloughing. As things stand the...

03 June 2020

Recent statistics published by HM Treasury confirm that £22bn of Bounce-Back Loans have been taken up by 700,000 small businesses across the UK. That is an average loan of approximately £31,000 per business.

As these loans are limited to 25% of business turnover, the average turnover of each business is £124,000.

The terms of these loans are generous. 2.5% fixed interest rate and...

03 June 2020

The recent news that the lockdown is being eased for certain businesses is good news. Unfortunately, there are many other businesses that are still closed and unable to trade.

And there is always a background risk that any relaxation of the lockdown will increase the number of COVID-19 infections.

The Government seem intent on easing the economic down-side of the pandemic and its...

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