MAKING TAX DIGITAL (MTD) FOR VAT BECOMES LAW
Making Tax Digital for VAT becomes mandatory for all VAT registered businesses, regardless of turnover, on 1 April 2022.
We can sign you up to MTD, although you will be responsible for meeting your VAT obligations. Those who do not join may be charged a penalty.
Barringtons are on hand to help. We have helped many business owners make the switch to stress-free cloud-based systems.
See how it can benefit your business here.
Call to discuss on 0800 019 1744.
HAVE YOU USED YOUR TAX-FREE CAPITAL GAINS ALLOWANCE?
You and each member of your family is entitled to make tax-free capital gains of up to £12,300 in the 2021-22 tax year.
If you have assets, shares for example, that you are thinking of selling, you may want to realise enough to produce gains up to the limit.
You may have to pay CGT if you sell a personal possession for £6,000 or more for example, a sale of jewellery, paintings or antiques.
Learn more here
POOR TAKE-UP OF TAX FREE CHILDCARE ACCOUNTS
There’s concern about the lack of families taking up tax-free childcare accounts. HMRC estimates that less than 22% of those eligible for the scheme had joined in March 2021. With many parents working from home for part of the week tax free childcare accounts are more flexible than childcare vouchers.
Click here for more
SHARING INCOME WITH YOUR FAMILY
The UK tax system does not allow families to spread the impact of taxation where there is one significant income earner providing for other family members. One strategy to consider in these circumstances is sharing taxable income with family members.
Here we look at options for the self-employed and limited companies as well as employing a family member in the business – perfectly acceptable providing there is a sound commercial reason.
Barringtons can help you create a feasibility study to quantify these savings.
Speak to your local office:
Newcastle: 01782 713700 Market Drayton: 01630 698017
Nantwich: 01270 623821 Newport: 01952 811745
CHANGES TO ACCOUNTING FOR VAT ON IMPORTS FOR USERS OF FLAT RATE SCHEME
There are important changes this summer for small businesses using the Flat Rate Scheme who are importing goods and using postponed VAT accounting.
For VAT return periods starting on or after 1 June 2022, they should no longer include import VAT accounted for using postponed VAT accounting in their flat rate turnover.
For more click here.
Get in touch if you need help meeting these deadlines.
1 April – Due date for corporation tax due for the year ended 30 June 2021.
19 April – PAYE and NIC deductions due for month ended 5 April 2022. (If you pay your tax electronically the due date is 22 April 2022).
19 April – Filing deadline for the CIS300 monthly return for the month ended 5 April 2022.
19 April – CIS tax deducted for the month ended 5 April 2022 is payable by today.
30 April – 2020-21 tax returns filed after this date may be subject to an additional £10 per day late filing penalty for a maximum of 90 days.
AND FINALLY…IT’S LIFE, BUT NOT AS WE KNOW IT
Now that the majority of COVID-19 restrictions are being eased, or removed completely, can we assume that normality can return in place of the unremitting uncertainty of the past two years?
Whilst this may seem to be a welcome prospect, business owners badly affected by this disruption will have two issues holding them back: A depleted balance sheet and repayment of loans.
We recommend pausing to create a realistic business plan. Go to our website for more.
Please get in touch if we can be of assistance with any of the issues raised