HMRC rolls out new measures to ‘tackle CIS abuse’

Four new measures affecting the construction industry scheme (CIS) were enacted from 6 April 2021 as HMRC cracks down on tackling abuse of the scheme. First, the tax authority can now amend the CIS deductions suffered and reclaimed on real-time information via the employment payment summary to an amount matching any evidence HMRC holds.If there […]

VAT-registered firms start using digital links under MTD

A million businesses need to have digital links in place to submit VAT returns and comply with phase two of Making Tax Digital (MTD) for VAT. All VAT-registered firms have until their first VAT return period, starting on or after 1 April 2021, to put digital links in place. A digital link is an electronic or […]

Tax Implications of Furnished Holiday Lets

COVID-19 prompts high demand for UK holidays. Owning and letting out a holiday home, otherwise known as a furnished holiday let (FHL), has always been a popular way of investing and earning income. Not only do FHLs enjoy many tax advantages over normal residential let properties, owners have an asset which they can use for holidays […]

The Pensions Lifetime Allowance

How might the big freeze affect you? Traditionally, most people get nowhere near breaching the pensions lifetime allowance, but that’s likely to change over the next five years. The lifetime pensions allowance is currently £1,073,100.In his Spring Budget on 3 March 2021, however, Chancellor Rishi Sunak revealed that this would be frozen until 5 April […]

VAT-Registration and Deregistration Thresholds Frozen until 2024/25

The Treasury has frozen the UK’s VAT thresholds for a further two years in a bid to start repairing tattered public finances following COVID-19. Businesses with annual taxable turnover of more than £85,000 have to register for UK VAT and file digital VAT returns through compatible software. This VAT-registration threshold for 2021/22 remains at £85,000 […]

Treasury Issues Guidance on the Final Two Self-Employed Grants

More help for the self-employed has been announced, with the final two income support grants available until the end of September 2021. The fourth taxable grant available through the self-employed income support scheme (SEISS) covers a three-month period from 1 February to 30 April 2021.As with two of the previous SEISS grants, the fourth grant […]

New Recovery Loan Scheme Replaces Previous Covid-19 Loans

All UK businesses can access loans and other finance of up to £10 million each, following the end of COVID-19 loan schemes. Both business interruption loans – for large firms and SMEs – and bounce-back loans officially closed on 31 March 2021. Firms that received financial support from any of those schemes can apply for […]

Three-Month Extension for Business Rates Holiday in England

The year-long business rates holiday in England has been extended for another three months, until the end of June 2021. Eligible retail, hospitality and leisure businesses will then pay a third of their normal charge for the rest of the financial year. A maximum discount of £2 million is available to non-essential retail firms that […]

The Future of UK Corporation Tax

What’s ahead for companies, from rate rises to Making Tax Digital. For the past 40 years or so, corporate tax rates have decreased steadily around the world. In 1980, the global average stood at around 40%, but by the end of 2020 it was closer to 24% as various countries aimed to encourage business investment. […]

Personal Tax Planning in 2021/22

PERSONAL TAX PLANNING FOR 2021/22 What’s changing for the new tax year? If there’s one thing to take away from Spring Budget 2021, it’s taking charge of your personal finances is going to be increasingly important over the next five years.With the financial fallout from COVID-19 over the last year being the fiscal equivalent of […]