ARE YOU RUNNING LATE?
If you’ve already sent us your information and we have submitted your return to HMRC, thank you! If you have not sent us your information (because of Coronavirus) HMRC are now waiving late filing and late payment penalties for one month – giving you extra time, if you need it, to send your information to us so we can complete your tax return and submit it to them.
You will not receive a late filing penalty as long as your tax return is filed online by 28 February. Interest will be charged from 1 February on any outstanding liabilities. You will not be charged a 5% late payment penalty if you pay your tax or make a Time to Pay arrangement by 1 April, so please act now. Contact your local Barringtons office or for more on payment plans go here.
NEW VAT PENALTY REGIME DELAYED TO JANUARY 2023
A new, and arguably, fairer system for determining penalties for late returns and late payment of VAT has been delayed by a year and will now commence in January 2023. The same system will also apply to returns under Making Tax Digital (MTD) for income tax and those penalties will now start in April 2024.
Under the new regime taxpayers will accumulate points for late submissions and only after reaching a certain threshold will an automatic penalty be imposed. For more click here.
Barringtons has a specific VAT and Duties consultancy, provided by Colin Woodward, the VAT and Duties Director, who is also a Chartered Tax Advisor and a former Senior Officer of HM Customs & Excise.
CHANCELLOR’S SPRING 2022 STATEMENT AND MINI BUDGET?
Spring is around the corner and with it comes the likelihood of important tax announcements.
The Chancellor Rishi Sunak has commissioned the Office for Budget Responsibility (OBR) to produce an economic and fiscal forecast for Wednesday 23 March 2022.
See the Spring 2022 forecast statement here.
We will be on hand to chat through any changes that may apply to your business.
STATUTORY PAY RATES FROM APRIL 2022
The government has published the proposed statutory rates for maternity pay, paternity pay, shared parental pay, adoption pay, parental bereavement pay and sick pay from April 2022.
See here for rates.
PREPARE FOR MAKING TAX DIGITAL (MTD) IN APRIL
Over the years there’s been much talk of Making Tax Digital (MTD) with a phased introduction for varying business sizes. Those with a taxable turnover above £85,000 have already been required to follow MTD, keeping digital records and filing VAT returns using compatible software since April 2019. From 1 April 2022, all VAT registered businesses must file digitally through MTD from 1 April 2022, regardless of turnover.
Our cloud accounting team have helped a great many businesses with MTD so if you haven’t made the switch, please talk to us urgently about complying with the new law.
For more on the benefits of cloud accounting go to our website.
SUPPORT FOR UK BUSINESSES IMPACTED BY OMICRON
There is a reminder about government one-off grants of up to £6,000 per premises for businesses in the hospitality and leisure sectors in England. See our blog.
More than £100 million discretionary funding will be made available for local authorities to support other businesses. There’s support also for small and medium-sized employers to cover Statutory Sick Pay for Covid-related absences.
THE LATEST ON TRAVEL
If you arrive in England after 4am, 11 February, the following rules will apply.
Fully vaccinated: You will not need to take a COVID-19 test before you travel to England or after you arrive. Quarantining will no longer apply.
Not fully vaccinated: You will need to show proof of a negative COVID-19 test to be taken in the 2 days before you travel to England. Click to book and pay for a COVID-19 PCR test to be taken after you arrive in England. You will need to book the PCR test before you travel.
EMPLOYING SOMEONE TO WORK IN YOUR HOME
Paying someone to act as your nanny, housekeeper or gardener may result in you being considered an employer. This may involve you needing to meet statutory employment rights and deducting any tax or NI contributions from their wages. This blog tells more.
AND FINALLY…IS IT TIME TO PUT YOUR FEET UP?
The ultimate aim of every serious business person is to build a company that has value, so that it can be sold or transferred, allowing the entrepreneur to exit gracefully and profitably.
Recently, we have been helping a number of our entrepreneur clients develop exit strategies. There are many issues to consider such as how much is the business worth, can it be sold to employees or is a trade sale more likely? Do you want to stay on after the sale/transfer and what are the tax consequences?
We have a tried and tested methodology to address these issues. If you would like to discuss your personal exit plans we would be happy to do so with you.