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November 2021

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To November’s Business Companion News

VAT Annual Accounting Instalments
For clients on VAT Annual Accounting, HMRC will write to you each year to tell you what your interim payments should be. If you are set up for monthly instalments, they will usually be set at 10% of your previous year’s VAT liability  If you feel the suggested amount is too high because, for example, your turnover has decreased, just let us know and we will ring HMRC on your behalf.  Usually we are able to negotiate lower payments where there is a good business reason.

Monthly interim payments are due at the end of month 4 to the end of month 12.  Quarterly payments are due at the end of months 4, 7 and 10. Balancing payments are due within two months of the VAT year-end.
November 2021
· Latest news round-up
· Partial exemption and B2B services from overseas
· New VAT Points-based Penalties
· Avoiding wasted capital losses
· November Questions and Answers
· November Key tax dates
Latest news round-up top
Autumn Budget

The 2021 Autumn Budget was relatively quiet in terms of tax-related announcements, and the Finance Bill 2021/22 published on 4 November was similarly thin on new changes, consisting to some extent of measures that had already been announced, e.g. the abolition of basis periods.
Read More
Partial exemption and B2B services from overseas top
New VAT Points-based Penalties
When a supply of services is from one business to another, i.e. a B2B supply, the general rule is that supply is treated as taking place wherever the customer is located, rather than the supplier. As an example, if a website design business is located in Belgium and they provide services to a VAT-registered business in the UK, it does not charge Belgian VAT as the supply takes place in the UK.
Read More
From April 2022, HMRC will be introducing a new penalty regime for late VAT submissions and payments. The penalties will be determined by a new points system. Those who consistently miss deadlines will accrue more points – and pay larger fines than the penalties currently in force. Instead of getting an automatic fine, under the new system, you will get a penalty point.

The more deadlines you miss, the more points you get until you reach your penalty threshold. Then you get a £200 fine (and another £200 fine for every subsequent deadline you miss).

We generally submit VAT returns for our clients and advise them what and when to pay. In addition many of them are on VAT Annual Accounting, so the new penalties shouldn’t be too much of a problem.
Avoiding wasted capital losses top
There were rumours that CGT rates were going to be increased at the Budget. These eventually proved to be incorrect, but there are still commentators that feel it is only a matter of time before changes are made with the huge COVID-19 related borrowing to finance for years to come.
Read More
November Questions and Answers top
November Key tax dates top
Q1. My company has issued a new class of shares to my adult children. However, these have been issued unpaid – with the amount available to be called at any time, though more likely to be paid in increments over the next few years. Both children work for the company full time. Is there an issue with a potential s. 455 charge? Answer

Q2. Earlier this year, one of our employees was permitted to take one of the company-owned projectors we use for seminars home for a couple of months to use for films and sports screenings. The company didn’t need this as we were prohibited from organising in-person events at the time. I happened to mention this to our accountant who is adamant that there will be a tax charge, but as the employee only had the equipment for six weeks, I was under the impression that private use was minor (i.e. only six weeks out of 52, and then only for a few hours a day). Who is correct? Answer

Q3. I am in the process of selling a buy-to-let property. My conveyancer has warned me that I need to complete a “30-day CGT return”. However, I’m sure I read that I can just wait and include the sale on my tax return instead. Is this correct? Answer
1 – Due date for payment of Corporation Tax for accounting periods ending 31 January 2021

7 – Electronic VAT return and payment due for quarter ended 30 September 2021

19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/11/2021

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, Solar Accounts, 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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95 Bridge Lanes, Hebden Bridge, Yorkshire, HX7 6AT
Simple Accounting is a trading name of Simple Accounting Limited
Company Reg No. 5164026. Registered in England and Wales
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