The Spring Statement 2022

Spring Statement 2022 The Chancellor presented two Budgets in 2021 in which he set out a great many details of the tax rates and rules that will apply until April 2026. The 2022 Spring Statement was expected to review the economic situation and adjust forecasts, but was not supposed to include anything significant about tax. Of course, things have changed dramatically since October: there is a war in Ukraine, energy prices are rising sharply and inflation has returned to levels last seen in the early 1990s. An announcement had already been made in February of measures to help people with fuel bills later in the year, and commentators were speculating how much more Mr Sunak might do now, with tax receipts running higher than forecast and the effect of inflation set to increase those receipts in the future. Most predicted he would do something, but many believed he would be cautious and leave significant changes for the next Budget Download the full...
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A Guide to VAT Reverse Charge – New VAT Rules for Construction

New VAT rules for construction In this brief guide we look at the ‘Domestic Reverse Charge’ (DRC) that is tobe introduced for VAT on construction services from 1 March 2021. This was announced in a consultation in early 2018, with the intention that it should be introduced on 1 October 2019. It was delayed for a year because of Brexit, then delayed another 5 months because of the pandemic. As far as we can tell, Brexit and the pandemic will still be with us on 1 March 2021, but we have to be prepared for the new rules to be introduced without a third delay. There are links to HMRC’s detailed website guidance at the end of the newsletter. Charcroft Baker - VAT Reverse Charge GuideDownload ...
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Covid-19 – Emergency measures announced

Autumn 2020 Business Support update (Click to download)- Issued 8th October 2020 Read our Business Support document (Click to download) - Updated 23th July 2020 The PDF Business Support document has been updated. Updated 3rd June 2020 The PDF Business Support document has been updated. 6th May 2020 UPDATE The PDF Business Support document was updated. 17th April 2020 UPDATE The PDF Business Support document was updated. 27th March 2020 UPDATE Subsequent to the below announcements the Government has now announced help for employers to pay their staff and also help for the self employed. Details on all of the announcements for business support during the Coronavirus pandemic can be found at https://www.businesssupport.gov.uk/coronavirus-business-support/. Specific guidance on the Job Retention Scheme can be found at https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme and specific guidance for the self employed can be found at https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme If you need any further advice on any of the support measures announced please contact us. First set of emergency measures In the last few days, the Government has made major announcements about help for small businesses and individuals affected by...
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IR35 – HMRC launches updated CEST tool

HMRC has released an updated Check for Employment Status for Tax (CEST) service, used to find out whether a contractor or employer should be classed as employed or self-employed for tax purposes, and in-line with IR35 legislation. On 6 April 2020, IR35 rules, which currently apply to the public sector, will also come into force in the private sector. The tool was originally created in March 2017 by the government to check employee statuses. Read the full article at Accountancy Age. CEST Tool (HMRC) ...
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Taxpayers struggling to pay want ‘simplicity, flexibility and accessibility’

Research reveals taxpayers who are facing difficulties with their tax bills have little or no awareness of help options, but believe HMRC should do more to promote available support and make more use of YouTube. According to HMRC’s Behaviour, Insight and Research Team, taxpayers have very little or no awareness of the support options that the government tax collection agency currently offers to those who are struggling to pay their tax. This was, in part, due to customers’ low motivation to actively seek out information about tax and associated support options from HMRC. Read full article at Accountancy Daily ...
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Tax-free childcare for kids applies to holiday club payments

As the summer holidays loom, HMRC is reminding working parents that they can apply for tax-free childcare worth up to £2,000 per child per year to pay towards regulated holiday clubs during the school holidays. Photo by rawpixel.com from Pexels Parents can choose from more than 68,000 childcare providers that have signed up, including school and summer camps across the country. If parents pay into their tax-free childcare account regularly, they can ‘save up’ their money and use it for childcare during school holidays. Read full article at Accountancy Daily ...
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MTD penalties – soft landings, light touches and hard lines

Making Tax Digital for VAT (MTD) is now live, and some businesses may find that they struggle to get to grips with the new requirements it brings.  It is therefore essential to have a clear understanding of how HMRC might apply penalties under MTD and what businesses should do if they encounter problems or things go wrong. Credit: Google local guide 박재영 Read the full article at Accountancy Age. ...
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Young people targeted with phone tax scams

HMRC is warning young adults who may have less experience of the tax system to be especially vigilant about tax refund scams via smartphone, as fraudsters ramp up activity after the self assessment season. Photo by Adrianna Calvo from Pexels During April and May, fraudsters regularly blitz taxpayers with refund scams by email or text pretending to be HMRC. Criminals do this to coincide with legitimate rebates being processed by HMRC. Read the whole article on Accountancy Daily. ...
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Businesses warned on winding up perils over unpaid tax

Photo by Tim Mossholder from Pexels HMRC applied to shut down 4,160 businesses because they had fallen behind on their tax payments in 2018 with financial problems being exacerbated by a late payment culture. Based on analysis of HMRC’s winding up petitions by Funding Options, the tax authority is still being too aggressive in its approach to shutting down businesses, particularly given the tough trading conditions caused by Brexit uncertainty and slowing global economic growth. Read full article at Accountancy Daily. ...
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