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June 2022

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To June’s Business Companion News.

Simple Accounting Archives & Advice:

Here is a useful archive of past newsletters with Tax tips, past tax advice and bookkeeping shortcuts: Newsletter Index.

Also don’t forget our list of useful business advice links including helpsheets, business advice and forms: Business Advice.

June 2022
· VAT & FRS Rates return to pre Covid Percentages
· Capital Gains Tax – your main residence may not be tax-free
· Are you struggling to pay your tax bill?
· Tax relief for losses – Coronavirus concession
· June Questions and Answers
· June Key tax dates
VAT & FRS Rates return to pre Covid Percentages top

During the Coronavirus Pandemic the Government introduced reduced VAT rates for some hospitality businesses. The government has now withdrawn these VAT concessions.

The reduced rates applied to:
Catering services including restaurants and takeaways
Hotels & accommodation
Public Houses: wet sales only.

The VAT rates were as follows. 

VAT Rates (%)
before 15 July 2020   20 20 20
from 15 July 2020 to 30 September 2021 5 5 20
from 1 October 2021 to 31 March 2022 12.5 12.5 20
from 01 April 2022
20 20 20


Flat Rate Scheme (FRS) VAT scheme

The discounts for businesses registered under the Flat Rate Scheme have been a bit more complicated:

FRS Rates (%)
Catering Hotels Pubs
before 15 July 2020  
12.5   10.5
from 15 July 2020 to 30 September 2021   4.5 
from 1 October 2021 to 31 March 2022
from 01 April 2022     
   10.5      6.5


If your returns have been made at the wrong rates we can help you claw back the difference. 

Capital Gains Tax – your main residence may not be tax-free top
Are you struggling to pay your tax bill? top

The sale of every property is potentially taxable under the Capital Gains Tax (CGT) rules. When an individual sells their only or main residence, generally the gain is exempt from CGT due to the Principal Private Residence (PPR) relief. However, we are so used to saying this that we are in danger of forgetting the two conditions that must be satisfied for a claim to succeed.
Read More

The last couple of years have been financially difficult for many and the coming year will bring increased costs – not least utility bills. The July 2022 payment on account tax bill needs to be paid in a few weeks’ time and some taxpayers may find it a struggle to do so. In addition, some may still be owing tax from 2020/21 and have found an additional 5% penalty added to their tax bill.
Read More

Tax relief for losses – Coronavirus concession top

Those businesses that have struggled through the pandemic may find that when they come to do their accounts where usually there is a profit, the business made a loss. Whether and how that loss can be utilised depends on whether the accounts are prepared using the ‘cash basis’ (recording revenue when cash is received, expenses when they are paid) or the ‘accrual basis’ (recording revenue when earned and expenses when incurred).
Read More

June Questions and Answers top
June Key tax dates top
Q1. I am a basic rate taxpayer and a registered subcontractor having tax deducted at 20% from any income. I understand that I can register for CIS gross status to receive my pay with no deductions. How do I go about this and are there any disadvantages? Answer

Q2. I lost my job during the pandemic and intend to set up an arts and crafts shop. I will be incurring some expenses before I can open including the cost of setting up a website, buying business cards, equipment and stock, paying two months’ rent in advance and insurance. I purchased a computer and printer five years ago and although it is now deemed to be ‘ancient’ in computer terms, it still works and I want to use it in my business as well as for home use. What expenses can I claim? Answer

Q3. I incorporated a company in April 2021 but the company has not started trading for various reasons and possibly will not do so for another few months. Do I have to submit accounts and a corporation tax return? Answer

1 – Payment of Corporation Tax for accounting periods ending 31 August 2021

1 – Deadline to confirm employees payrolled benefit information.

1 – New Advisory Fuel Rates (AFR) for company car users apply from today.

7 – Electronic VAT return submission and payment due for quarter ended 30 April 2022

19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5 June 2022

10th – 12th June 2022 – Direct debit payment for VAT will be taken during these dated for quarter ended 30 April 2022.

30 – Final deadline for applying for the Government Covid Recovery Loan Scheme

30 – Submission of Corporation Tax returns: 30 June 2021 year end

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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