The latest Tax News, VAT News, HMRC News and Fee Protection Insurance News from the experts at Vantage Fee Protect.
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Professional Indemnity Insurance & Regulation in the Tax Advisor Market
At The Spring Budget in 2020 the Government asked for evidence to look at ways to raise standards in the tax advice market. As part of this the Government sought to seek views on making professional indemnity insurance (PII) compulsory for all tax advisers and launched a consultation on 23 March. We are still awaiting…
Claiming VAT on the construction of a new working farmhouse
So, your client is a VAT registered farmer operating a full-time farming business and lives in the onsite farmhouse. Previously your client has had to have the roof of the farmhouse repaired and a new heating system installed to replace the old one and you previously claimed 70% of the VAT incurred on these repairs,…
Can HMRC contact you?
Since the introduction of MTD, HMRC has had 2 systems handling VAT returns and payments; one for MTD users and one for non-MTD users. In April 2021 they began migration to a single system for both but they have apparently run into problems that may result in direct debits payments for returns not being taken…
Urgent: Only One Month Left!
Did your client take advantage of the agreement by HMRC to allow deferral of the payment of VAT due on VAT returns submitted early last year? If so and they haven’t already repaid the deferred VAT, then have they signed up for the VAT Deferral New Payment Scheme to allow them to repayment the deferred…
Why cash isn’t king!
Don’t believe everything you read in the newspapers – especially in the financial pages, warns Roddy Kohn Most accountants, I suspect, use the phrase ‘cash is king’ to their clients on an almost daily basis. Are they mad? In business, not at all. After all, cash flow in business is fundamental and cash for short-term…
UK Sets New Record For New Company Formations
New figures show that despite the pandemic the number of companies formed in the UK reached a new record high in 2020, writes John Korchak In the whole of the UK, there were 780,766 new companies formed – somewhat of a surprise increase from the previous record of 690,763 set in 2019. Of the 697,446…
Take It To The Bank
Boost for SMEs as free and independent service for unresolved bank complaints goes live Small businesses across the UK are now able to use a new, free and independent service to help them resolve disputes with their banks, in a boost for companies struggling in the current crisis. The Business Banking Resolution Service (BBRS) will…
HMRC Enquiries on the Increase as New Task Force Announced
Each year HM Revenue & Customs (HMRC) will undertake a number of tax enquiries into individuals and businesses in order to ensure that they have paid the right amount of tax. Since 2010 HMRC have strengthened their approach from this point of view and the general trend has been a year-on-year increase in the number…
Budget 2021 – Further Changes Explained
On 3 March 2021 the Chancellor delivered his 2021 Budget upon the backdrop of the current Covid pandemic, and the Governments continued pledge to support businesses through the crisis. While the Budget contained many numbers of changes in regard to the direct side of taxation, there were very a few changes in regards to VAT,…
Budget 2021: Stamp Duty Land Tax
Given the high take up of property purchases following the temporary increase of the 0% SDLT rate to £500,000 which was due to end on 31 March 2021, there are many property transaction which were unlikely to complete in time to enjoy the break. Initially this was to be a finite break and the band…
Budget 2021: Changes to Corporation Tax
In his Budget Speech on 3 March 2021 the Chancellor, Rishi Sunak, announced a number of changes to Corporation Tax. First the rate of CT will remain at 19% for the next 2 financial years until 1 April 2023 when it will be increased to 25%. However, this rate will only apply to those companies…
Budget 2021 Announcements
Furlough and SEISS As widely anticipated, the Chancellor, Rishi Sunak, has announced extensions to the Job Retention Scheme and the Self-Employed Income Support Scheme SEISS A fourth grant under the Self-Employment Income Support Scheme (SEISS) scheme will run from February until April, covering up to 80% of three months' trading profits up to £7,500. Also,…
Cut to the CO2 emissions threshold from April 2021
As a response to the Government’s strategy of banning the sale of petrol, diesel and hybrid vehicles by 2035, HMRC have announced a change to the CO2 threshold rates from April 2021. From this date: The 100% First Year Allowance (“FYA”) will now only apply to the purchase of new/unused fully electric cars with 0g/km…
HMRC refuse to move on filing deadline
Representatives from the professional accountancy bodies met with HMRC to urge them to move the 31 January 2021 filing deadline in response to the COVID-19 situation and whilst HMRC ultimately decided not to grant an extension, they have clarified the position on penalties. Self-assessment Following the impact of the current pandemic, most people expected HMRC…
Changes to the Place of Supply of Services rules
Changes to the Place of Supply of Services rules for UK suppliers after 31/12/2020 Many services provided by UK businesses fall under the general Business to Business (B2B) or Business to non-business Consumer (B2C) rules for deeming where a service is supplied; a B2B supply would be considered to be made where the business customer…
Selling goods to the EU after 31/12/2020
VAT and UK businesses selling goods to the EU after 31/12/2020 With effect from 1/1/2021 sales of goods from the UK to the EU will no longer be EC Sales or Distance Sales but will instead be zero-rated exports for the purposes of UK VAT, whether the customer in the EU is a business or…
HMRC Awakens…
It has been widely publicised that there was an initial reduction in HMRC compliance activity when the first lockdown commenced back in March. With HMRC in the same boat as most, adapting to working from home and unable to undertake face to face compliance work and given that politically it was not the time to…
Reasonable Excuse – Recent Development
The recent case of Belloul v HMRC provides an interesting view on the concept of the definition of “reasonable excuse” for tax purposes. HMRC The case related to HMRCs ability to charge penalties for the taxpayers’ failure to notify them about their liability to the High Income Child Benefit Charge (HICBC) dating back several years.…
Transfer of Private Residence – Private Residence Relief
Transfer of Private Residence - Private Residence Relief Finance Act 2020 introduced changes under paragraph 24 regarding the period of ownership of main residences. The changes apply to disposals in or after 6 April 2020. The matter under consideration is the transfer of an interest in the only or main residence between spouses or civil…
Adversely affected business by coronavirus
Self-Employment Income Support Scheme What is an Adversely Affected Business? A taxable grant was payable to eligible self-employed individuals (and partners) in the course of the COVID-19 crisis. HMRC will and have already started policing claims to ensure that only those eligible were in receipt of the grant. Many of the qualifying criteria are factual.…
Coronavirus Job Retention Scheme Update
As part of the phased withdrawal of the Coronavirus Job Retention Scheme (CJRS), further changes have been introduced as from 1 September 2020. Furloughed workers should continue to be paid 80% of their usual wages up to the £2,500 upper limit. The CJRS grant is still available but now restricted to 70% of the usual…
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