News has been a little quieter over the past few weeks and therefore we have given everyone a rest from our business blogs. However, there have been a few things over the past week or so and today’s blog includes several items that are non-Coronavirus related, which suggests that things are returning to the ‘new normal’.
At Smarter, we speak to businesses all of the time, and it is pleasing that many businesses are starting to see some good figures helping them recover from the hit that Coronavirus has had. On the flip side, we also know that there are businesses that are struggling and for them a return to normal is some way off. Our thoughts are with them and we are here to help, offer advice and guidance when required. During this time, supporting local business has never been more important and we continue to urge our local communities to do so wherever possible.
From a Smarter Accounting point of view, things have continued to be busy. We have made some new staff appointments and we will release details of those over the coming weeks, as the new team members take up their positions. The new Teignmouth Office is taking shape and coming on nicely. There is no opening date yet, but we are very much hoping that it will be sometime in September.
Please see below news and information snippets that we think will be interesting for our clients:
- Self Employed Income Support Grant – The second grant will be available later in August. Claims can be made from 17th August
- The first grant was for a three-month period and was paid at 80% of the last 3 years taxable profits, capped at a maximum of £7,500. This second grant will be paid at 70%, capped at a maximum of £6,570
- To make a claim your business must be adversely affected on or after 14 July. The 14 July date is clearly very important and anyone making a claim should consider the gov.uk examples of adversely affected:
- You are unable to work because
- you are shielding
- are self-isolating
- are on sick leave because of Coronavirus
- have caring responsibilities because of Coronavirus
- You have had to scale down or temporarily stop trading because
- your supply train has been interrupted
- you have fewer or no customers or clients
- your staff are unable to come in to work
- You can claim the second grant even if you did not claim the first grant
- You are unable to work because
- Eat Out to Help Out Scheme and VAT – This scheme started in August and hopefully you have all had a chance or will get a chance to use it. We have now received details of how the VAT works on this deal. VAT is due on the total amount before the discount. In most cases, alcohol sales excepted, the vat rate has been reduced to 5%. So the impact will not be as big as it could have been. Find out more here >>
- Making Tax Digital – With Coronavirus the whole new HMRC world of making tax digital had gone very quiet. The roll out programme has been behind schedule since the start and recently HMRC made an announcement to clarify a revised timetable. Sensibly, and we assume due to Coronavirus, things have been put back further and the new dates look like this:
- Vat registered businesses with turnover of more than the vat threshold (£85,000) should already be keeping records digitally and be using software to file their VAT returns
- Vat registered businesses with turnover of less than the vat threshold (£85,000) will be required to follow the making tax digital rules for their first return starting on or after April 2022
- The plan has always been that making tax digital will also come in for income tax and the announcement delays the start of this. For self-employed businesses (including partnerships) and landlords with income above £10,000, they will need to follow the making tax digital rules from the accounting periods starting on or after 6 April 2023
- Capital Gains Tax Reporting for Land and Property Transactions – We have covered this in previous blogs. From 6 April 2020 any land and property sales that give rise to a Capital Gains Tax liability need to be reported and paid to HMRC within 30 days of the transaction. Previously, such transactions were accounted for within the relevant self-assessment tax return. This 30-day reporting rule was relaxed due to Coronavirus but is now reinstated. Failure to report and pay within the 30-day period will result in fines and interest becoming due
- If you have plans to sell some property, please call us and we can ensure that we take care of the necessary submissions. Paperwork will need to be gathered in an extremely timely manner and we can let you know what we will need to ensure everything is completed on time
If you have any questions on the above, please do not hesitate to contact us. The Smarter Accounting Offices continue to be staffed, but not open for face to face meetings. We can always make other arrangements for video conferencing, telephone calls and at times garden meetings if required. If you are dropping off or collecting records via the office, please notify us in advance. We will review these policies on a weekly basis.
We provide more regular updates via Facebook and therefore, if you want the latest news then like our Facebook page.
Enjoy the weekend weather, it looks like being a stormer! Best wishes and stay safe.