The Low Incomes Tax Reform Group (LITRG) has urged the government to raise the High Income Child Benefit Charge (HICBC) threshold to avoid it affecting basic-rate taxpayers for the first time in April 2021. The LITRG stated that this goes against the original policy intent, and is 'likely to cause the government additional difficulties in raising awareness about the charge amo ...

If businesses deferred paying VAT due in the period from 20‌‌‌‌ ‌March to 30‌‌ ‌June‌‌ ‌2020 and can’t afford to pay by 31‌‌ March‌‌ ‌2021, they can join the VAT deferral new payment scheme and pay their deferred VAT over a longer period. The online service will open on 23‌‌ February‌‌ ‌2021 and close on 21‌‌ June‌‌ ‌2021. Businesses can make up to 11 monthly instalments, inte ...

Many charities will currently be in the process of preparing their accounts for the last financial year, and those with trading subsidiaries will be considering how best to manage their tax position. The usual approach for a subsidiary that has generated profits is to donate that profit to its parent charity, either by gift aid or deed of covenant, which if done within 9 months ...

Are you a VAT registered contractor/subcontractor who is providing services under the Construction Industry Scheme? If yes, you must ensure you comply with the new VAT rules coming into force from 1 March 2021. Get ready for the change Before this change comes into effect, please make sure your accounting software is up to date. This will enable you to process and submit VAT ...

The United Kingdom officially left the European Union (EU) on 31 January 2020 and the 11-month transitional period ended on 1 January 2021. There are important changes businesses must now make in order to continue trading with the EU. VAT changes The UK left the EU VAT Territory on 31 December 2020. Following this date, Great Britain (England, Wales and Scotland) are not subj ...

Businesses that took out government-backed Bounce Back Loans to get through Covid-19 will now have greater flexibility to repay their loans, the government has announced Bounce Back Loan borrowers will now have the option to tailor payments according to their individual circumstances with the option to delay all repayments for a further six months. Pay as You Grow (PAYG) will ...

To help with the financial downturn caused by the COVID-19 pandemic many lessees have been granted rent concessions by their landlords. This could take the form of a temporary rent reduction or a rent holiday. Due to a lack of any clear guidance in existing standards there have been differing views as to how concessions such as these should be accounted for, leading to inconsis ...

At the July meeting of the SORP Committee the timetable and process for the publication of the next version of the Charity SORP was discussed. Future changes to the Charity SORP will be closely tied to more general developments in UK accounting practice and the next update of FRS102, the financial reporting standard upon which the SORP is based. As a result we can now expect th ...

If applicable to your business you should act now so that you can benefit from postponed VAT accounting (PVA) if  VAT-registered and importing goods into: • Great Britain (England, Scotland and Wales) from anywhere outside the UK ; • Northern Ireland from outside the UK and EU.  PVA allows for the declaration and recovery of  import VAT on the same VAT Return, rather than hav ...

The Government is to simplify the requirements for the Kickstart scheme, which is designed to create jobs for 16- to 24-year-olds, by reducing the limit for the number of vacancies employers must supply. The Department for Work and Pensions (DWP) said the scheme, which has been underway since September, has created over 120,000 jobs, but there has been criticism of the bureauc ...