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Welcome… To January’s Business Companion News.  After a difficult year we wish you all the best for 2021! Not yet one of our clients? The restrictions since last year have made life very difficult for many small businesses. It has also allowed some time to pause and review systems and support teams.  If you’re not already one of our clients have a look at our Business Companion Service.  Our comprehensive accountancy service includes bookkeeping training, workplace pension support, MTD returns and much more. If you need help or advice just give us a ring or us.   January 2021 · Latest round up · Reverse charge for building services imminent · First-year allowances for zero emission cars to continue · HMRC launches UK VAT number checking tool · January questions and answers · January key tax dates Latest round up top With much of the country entering Tier 4 restrictions around Christmas, and Wales being put back into a stay at home lockdown from 28 December, it is inevitable that there would be further announcements made with respect to business-related COVID-19 measures. Extension of furlough scheme The Coronavirus Job Retention Scheme (CJRS) was initially supposed to end on 31 October 2020. However, this was extended to 31 March. On 17 December, the Chancellor announced that the scheme would be further extended to the end of April 2021. The government will therefore continue to pay 80% of the salaries of furloughed employees for an additional month. There are no changes to the eligibility criteria. Read More   Reverse charge for building services imminent top First-year allowances for zero emission cars to continue top After two delays, the new rules for certain building services will finally take effect from 1 March 2021. Under the current rules, a business (for example a builder) will add VAT to their sales invoices passed to their customers, and then account for this to HMRC via the VAT return. The problem is that HMRC feels that there is a high amount of what is called “missing trader fraud” in the construction industry, i.e. where the trader charges and collects VAT, but then absconds with it without paying it to HMRC. Read More There was some confusion when Finance Act 2020 was published. The government had announced that it would be extending the current enhanced 100% first-year allowance (FYA) available for zero-emission vehicles. However, when the legislation was published there was no mention of any extension, leading to speculation that the FYA would be scrapped in April 2021. Read More   HMRC launches UK VAT number checking tool top Following the UK’s exit from the European Union, VAT registration details of UK companies will no longer be maintained on the VAT Information Exchange System (VIES). Being able to check the validity of a new supplier’s VAT number is an important step in combatting VAT fraud. For example, a rogue supplier might provide what looks like a valid VAT invoice to another business. In reality, the supplier isn’t VAT registered and the VAT registration number on the invoice is fake. The supplier simply pockets the 20% “VAT” charged. The problem for the customer is that they haven’t really paid any input tax. If they include it on their VAT return and this is discovered during a compliance check, they will need to repay it to HMRC. Read More   January questions and answers top January key tax dates top Q. I want to pay for my employees to be screened regularly for COVID-19. Is this a taxable benefit or is it exempt? Answer Q. I took advantage of the VAT deferral scheme back in June 2020. The payment date is 31 March 2021, but we had to close again on Christmas Eve – meaning we’re going to struggle with cash flow. Is it possible to defer the payment? Answer Q. I am looking to buy a substantial new property later this year. I have found one that is ideal on the Welsh Borders, but I’ve checked the Land Registry and it turns out that the land included is partly in England and partly in Wales. What does this mean for SDLT purposes? Answer 1 – Due date for payment of Corporation Tax for accounting periods ending 31 March 2020 7 – Electronic VAT return and payment due for quarter ended 30 November 2020 14 – Filing deadline for form CT61 to report interest payments in quarter ended 31 December 2020 14 – Deadline for employers to make a claim for furlough days in December. 19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/1/2021 29 – Deadline for filing claim for third Self-Employment Income Support Scheme. 31 – Electronic filing deadline for 2019/20 self-assessment returns for individuals, partnerships and trusts. Payment deadline for any balance of liability from these returns, and any first payment on account due for 2020/21 31 – Standard deadline for amending 2018/19 returns. Also, last date to file overdue 2018/19 return without incurring a minimum penalty of £300, and last date to pay any tax for 2018/19 overdue before incurring a further 5% penalty   Need Help? top New Clients Welcome top Please contact us if we can help you with these or any other tax or accounts matters. In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list. If you are not already a client and are interested in becoming one, we would love to discuss how we can help and provide you with a competitive quote for our services. See details of our Business Companion Service.   About Us top Simple Accounting Limited offers a cost effective Business Companion service to business owners who use MYOB, Acclivity, Mamut, Xero, Freeagent, Quickbooks or Clearbooks. ‘All clients using these software packages can benefit from our support. Visit our website http://www.simpleaccounting.co.uk for a look at the resource on offer.’   If the images do not show. If the images contained within this email do not show correctly please add this email to your safe senders list.

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