Happy Easter & New Tax Year

by | Apr 6, 2020 | 0 comments

The 6 April is the start of the new 2020/21 tax year!  Not quite a New Year fireworks moment, but an important time with some changes that will affect your finances as follows:

  • New Year, New Allowances – The start of a new tax year normally sees a number of changes in the annual allowances and at times different tax rates. This year there are less changes than normal, with tax rates staying the same. Some of the main areas are:
    • Personal Allowance, Tax Allowances and Income Tax Rates – These have remained unchanged in 2020/21. The personal allowance remains at £12,500, with the basic rate tax band still £37,500
    • National Insurance – Personal national insurance thresholds have increased more than the normal annual level. Politicians have been promising to bring national insurance thresholds in line with income tax and 2020/21 is the first year of this starting to happen. This year the threshold before personal national insurance is due has increased from £8,632 to £9,500. This is a larger than normal increase and such increases are anticipated in future years
    • VAT Registration Threshold – The vat registration threshold remains at £85,000 for the fourth year
  • End of the 2019/20 Tax Year – The end of the tax year is probably more significant to Smarter Accounting and you, our clients. It means that various year end returns are due! We know the Coronavirus has impacted on us massively, but the deadlines for submitting the various returns has not been adjusted and therefore it’s business as usual. Some main points around year end returns which you may find useful:
    • 2019/20 Payroll Year End
      • We have until 19 April 2020 to complete payroll submissions, which includes the following:
        • Any weekly or monthly payroll submissions
        • Any Construction Industry Scheme (CIS) sums deducted you’re your subcontractors
        • Any CIS sums suffered i.e. deducted from you
      • Where Smarter Accounting run your payroll then we’ll look after this for you. We’ll contact you about CIS sums deducted (as is normal), but if you have suffered CIS deductions then let us know the figures up to 5 April 2020. For some Limited Company clients this can result in refunds being due from HMRC
      • P60’s (employee end of year payroll summary form) must be distributed by 31 May 2020. We will send out PDF’s of you P60’s later in April
      • P11D’s (employee benefit forms) must be produced and submitted by 6 July 2020
    • 2019/20 Self Assessment Tax Returns – The self assessment tax returns are due again! These must be submitted by 31 January 2021, if they are being submitted electronically. This date seems like a long way off, but as we know will come around soon enough. Our software has been updated and we have already been producing 2019/20 tax returns. It may be worth you looking to get your information in early:
      • Self Employed CIS Subcontractors – Many of you in this group get tax refunds. Why wait for these until January? These refunds are available now. Generally, once we have produced your tax return, refunds will be released, from HMRC, within 1-2 weeks
      • Want to know how much tax you’ll be paying? – Want early notice of your tax liabilities for the 2019/20 tax year? Then get your records in early and get the maximum notice
      • Just want it out of the way – Then get your records into us and we will get on with things as soon as we can
    • March 2020 VAT Return – The March quarter is the busiest quarter for vat. For many it is the last vat return for the tax year. These returns must be submitted by 7 May 2020 and if We produce your vat return, it will really help us if you could get your records in as early as possible

During these difficult times, we wish to remind our clients that they’re valued and supported.  Our offices are currently closed, but records can be dropped off through the letterbox. If your records are too big for the letter box please contact us and we’ll help to make arrangements for getting records.

Finally, from all of us at Smarter Accounting, we wish you a very happy Easter and we hope that you receive many Easter eggs!

Best wishes and stay safe




Submit a Comment

Your email address will not be published. Required fields are marked *