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July 2021

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To July’s Business Companion News.

Payments On Account Due
Note that any second self assessment Payments On Account for 2020/21 are due by 31st July.  No late payment penalties will be applied to the Payments on Account if they are paid late.  But the HMRC will add interest. If you are not sure how much you are due to pay drop us .

Paying Self Assessment Tax: 
HMRC Bank Details:
Sort Code: 08 32 10
Account number: 12001039
Account Name: HMRC Cumbernauld
Payment Reference:
Use your 10 digit Self Assessment number (UTR), followed by the letter K for example 1234567890K.
July 2021
· Latest news round up
· New version of AE Software
· Property CGT – avoid reporting traps
· EU VAT Codes
· July questions and answers
· July key tax dates
Latest news round up top
From 1 July the level of government support for the furlough scheme will reduce. The government contribution will fall to 70%, subject to a cap of £2,187.50 per month. The employer will now be required to make a contribution of at least 10% (up to £312.50) to maintain the 80% employees were previously entitled to. Employers can continue to voluntarily top up wages above the 80% minimum, or above the cap, if they wish.

From 1 August the government contribution will fall to 60%, meaning the employer will need to pay 20%. This will remain in place until the end of September when the scheme is set to close.

In June, the Chancellor rejected calls to extend the furlough scheme following the delay of the lifting of restrictions from 21 June to 19 July.
Read More
New Version of AccountEdge (AE) Software
Property CGT – Avoid Reporting Traps
AccountEdge (AE) software has now been rewritten for 64 bit PCs. This means that the latest 2021 AE Canada upgrade now operates faster on PC, particularly with reports in a multi user system.   

It has also been rewritten for interaction with preinstalled 64 bit Microsoft office. Upgrading to this version will email invoices properly and directly. It will send reports into Excel, web and Acrobat. See on YouTube.

There is a Mac version for Big Sur and Catalina (ie macOS 10.15 and higher) mentioned in the last newsletter.See on YouTube.

Upgrades and conversions are free with your Business Companion contract.
Since April 2020, UK-resident taxpayers have been required to report gains on residential property, and make a payment on account of the tax due, within 30 days of completion. One of the key features of the reporting regime is that this 30-day reporting is only required where tax is due. If a gain is covered by the available annual exempt amount, or by losses that have crystallised before the completion date (but not later losses – even from the same tax year), no special return is needed. In addition, 30-day reporting is not required where the gain is covered by private residence relief, or is partly covered but the non-exempt amount is otherwise covered by the annual exempt amount, or pre-existing losses etc..
Read More

EU VAT Codes top
It was the legal requirement that we added the UK equivalent VAT on the ‘EU acquisitions’ (which most of us will call ‘imports’) to box 2 in a VAT return.  We offset this with an increase in box 4.  This pricess was calle ‘reverse charge’.  These imports were coded ‘IEG’ in the summary VAT report in our standard setup.  We were also meant to add deemed VAT on the services bought from the EU to box 1 (‘IES’).  One of our clients recently called this ‘ financial gymnastics ‘.  Nevertheless… that was the law.

Mercifully all this ended in December with UK’s departure from the EU Single Market.  Now that things have simplified we can rationalise our VAT coding structures for those clients who are affected.  The AE system does not allow you to delete these redundant codes if they have been used before.  

If you are not in Northern Ireland we suggest that you prefix all your IE* and XE* VAT codes with a Z.  This will put those redundant codes at the end of the lookup list and you will no longer notice them.  For costs (Imports) please now use IRS or IRG.  For sales (eXports ) use XRS or XRG.

July questions and answers top
July key tax dates top
Q. I own several restaurants which all sell English-style food. I am planning to sell two of these to separate buyers. The first intends to operate an Asian fusion restaurant, and the second (smaller) premises is going to be turned into a micropub. Both buyers are insisting that the sales will meet the conditions for a transfer of a going concern (TOGC) so that I shouldn’t and VAT to the purchase costs. However, I’m slightly worried that this is not correct, as in the first case the type of food served will be different, and in the second case the new establishment will not be a restaurant, although I am told the owner will serve bar snacks. What is the correct position? Answer

Q. Following the end of the first national lockdown last year I moved to the UK to take up employment. I am intending to claim the remittance basis for as long as possible whilst I am here. However, I also intend to make investments in UK shares. If I make substantial gains on these, am I able to offset offshore losses? Answer

Q. Our company has a year end of 31 July each year. We have managed to increase our profits despite COVID19 and are likely to vote a bonus to the directors for the first time in several years. The problem is we are unlikely to have the cash to make payment until November for various logistical reasons. Can we include the bonus as a deduction in the accounts to 31/7/2021? Answer
1 – Due date for payment of Corporation Tax for accounting periods ending 30 September 2020

6 – Filing deadline for Form P11D

6 – Employment Related Shares return filing deadline

7 – Electronic VAT return and payment due for quarter ended 31 May 2021

14 – Claim deadline for employers for furlough days in June.

14 – CT61 quarterly deadline for Q/E 30 June 2021

19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/7/2021 and Class 1A NIC for 2020/21

31 – Tax credit renewal forms must be submitted

31 – Second payment on account for 2020/21 due

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 for a look at the resource on offer.’

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