Have you found yourself thinking about setting up a business lately? Think that you have what it takes to run a successful business? Also, make a success of yourself? If you do, you will need to make sure that you understand the process and all the significant decisions you need to make. Southside Accountants in Wimbledon are pleased to support you.
This guide will help you understand about setting up a business. Further, to support you make to make the right… Continue Reading
When it comes to your own business, there are many balls you will need to juggle at the same time. This includes tax and accounting matters.
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Today the Chancellor announced an extension of the Coronavirus Job Retention Scheme, supporting workers who are unable to work due to COVID-19 and will continue to provide 80% of workers wages until October 2020.
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A useful guide for employers and employees working from home due to coronavirus. See what support is available and what you can claim in expenses.
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Following Chancellor, Rishi Sunak’s announcement on 20th March 2020, The UK government is supporting all businesses during the coronavirus pandemic by deferring VAT payments due from 20th March to 30 June 2020 inclusive and payment on account self assessment payments due in July 2020. Coronavirus Q&A: VAT & payment on accounts deferral, your questions answered.
When is the deferred VAT payment due to be paid to HMRC?
As it currently stands, Businesses will have until the end of the 2020-21 tax year to settle any liabilities due for this period i.e. until the 31 March 2021.
Q) Do I need to apply to HMRC to defer my VAT payment?
The deferral of VAT payments applies automatically so businesses do not need to apply for it.
Q) My VAT quarter-end is February 2020; am I still required to complete a VAT return?
Yes.
You will still need to submit a return by the normal due date as normal, usually one month and a week after your quarter-end.
For example, for a February quarter-end VAT return date your VAT return is due by 7th April 2020.
As the payment date of 7th April falls within the deferment period of 20th March to 30 June 2020, you are not due to pay any tax liability due immediately.
VAT deferment payments also apply to VAT quarter-end dates in March and April 2020.
Q) I pay my VAT by direct debit, will HMRC not collect payment automatically?
HMRC have advised businesses who pay by Direct Debit to cancel their direct debit themselves with their bank if they are not able to pay and to allow sufficient time for the bank’s cancellation process to take effect.
HMRC’s system will not automatically suspend the collection of payments so if you do pay your VAT bill in error because you have forgotten to cancel your direct debit, HMRC will not return the payment to you.
Q) What if I am due a VAT refund?
VAT refunds and reclaims will be paid by HMRC as normal on receipt of the VAT return submission.
The deferral for income tax self assessment applies to the second payment on account due on 31 July 2020 for tax year 19/20.
Q) When is the deferred payment due?
Payment is now deferred until 31 January 2021.
Q) Do I need to apply to HMRC to defer my payment on account?
No. The deferment is automatic and you do not need to contact HMRC.
Q)I pay my payment on account by direct debit, will HMRC not collect payment automatically?
It is unusual for taxpayers to pay their payment on account via direct debit, but if you do, HMRC have advised businesses who pay by Direct Debit to cancel their direct debit themselves with their bank if they are not able to pay and to allow sufficient time for the bank’s cancellation process to take effect.
HMRC’s system will not automatically suspend the collection of payments so if you do pay your VAT bill in error because you have forgotten to cancel your direct debit, HMRC will not return the payment to you.
Q) I am not self-employed, but I need to complete a self assessment tax return to declare other income. Does this deferral still apply to me?
Following some initial confusion HMRC has now confirmed that the deferral applies to all tax payers.
It is not necessary to be self-employed to be eligible for the deferral.
Q) I can afford to pay my payment on account, can I still pay?
The deferral is optional – some taxpayers may prefer to make the July payment to avoid a larger payment in January 2021, for example.
Q)Has the deadline changed for self assessment submission for 19/20 tax year?
Self assessment returns should still be filed by their usual due date for tax year 19/20, with the hard deadline of 31 January 2021.
However, we strongly recommend you complete your tax return sooner, earliest date being 6th April 2020, as you may be due a tax refund which will be paid out immediately or giving yourself more time to plan for your tax bill due in January 2021.
Please contact us if you would like support with completing your self assessment tax return.
Further guidance on the VAT deferment and payment on account for self assessment and the other government COVID-19 schemes can be found here.
HMRC also have a dedicated helpline with an option for VAT. The number is 0800 0159 559.
While the deferral measures brought in should reduce the need to call HMRC to discuss a time to pay, you can also use the number if you have difficulty submitting the return on time due to coronavirus related issues.
Written by Shaima Todd
HMRC will reimburse 80% of furloughed workers wage costs up to a cap of £2,500 per month per employee. The scheme will be in place for 3 months and if needed, be extended until the health crisis is over. Employer Q&A: Coronavirus Job Retention Scheme, your questions answered here.
HMRC are currently creating a new online portal so that all UK employers, regardless of size, will be able to seek assistance if they have employee(s) who have been designated as ‘furloughed’ workers, known as the Coronavirus Job Retention Scheme.
… Continue ReadingAs you know, the fallout from the Coronavirus pandemic continues, most businesses are adversely affected.
Please see link here as regards to the support available. We have summarised below the main points for small businesses to help understand clearly the help available during these extraordinary times.
… Continue ReadingPub owners have reason to celebrate as the Government pledges to a £1,000 business rates cut for pubs.
This valuable tax relief will be available to pubs with a rateable value of less than £100,000 available for a year from April 2020.
The welcome support to public houses is in addition to the previously announced cuts for small shops who will see their bills cut by 50 per cent.
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Its Q& A Friday! You may be wondering, why can’t I pay my taxes with a credit card? HMRC took the decision two years ago to ban credit card payments to pay your tax bill.
The main reason being to avoid the small credit card fees they would incur if they did!
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Let’s face it, who would want to be in Rishi Sunak’s shoes right now? Ok, he may have landed one of the most important jobs in the country as chancellor of the exchequer, but having to deliver one of the most important tasks of his job being only one month in? No easy task.
Our predictions for the 2020 Budget which will be delivered by Sunak on the 11 March.
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