Immigration Act receives Royal Assent19/11/2020
The Immigration and Social Security Co-ordination (EU Withdrawal) Act 2020 received Royal Assent on 11 November 2020. This is the legislation which will end the free movement of persons under retained EU law in the UK at 11pm on 31 December 2020. It will also repeal other retained EU law relating to immigration.
A new points-based...More...
Email to replace Companies House postal reminders 19/11/2020
Companies House has issued a press release to remind all companies to sign up for email reminders for annual accounts and confirmation statement. Companies House has now stopped sending reminders by post and has sent a final reminder letter to all companies currently receiving paper reminders. The letter explains why Companies House has...More...
Claiming the Self-Employed Income Support for first time?19/11/2020
The Government has confirmed that the Self-Employed Income Support Scheme (SEISS) grant extension will apply for 6 months from 1 November 2020. It will be possible to claim the SEISS grant extension even if no previous claim had been made under the scheme once the eligibility criteria are met.
The self-employed will receive 80% of...More...
Bounce Back loans still available19/11/2020
The Bounce Back Loans scheme was launched in May 2020 to provide financial support to businesses across the UK that are losing revenue and seeing their cashflow disrupted as a result of the COVID-19 pandemic. The scheme allows small businesses to borrow between £2,000 and £50,000 and access the cash in most cases within 24 hours of...More...
£1 million Annual Investment Allowance extended19/11/2020
In a welcome move, the government has announced that the temporary Annual Investment Allowance (AIA) cap will be extended for a further 12 months until 1 January 2022. The government says that this move is intended to boost confidence as companies look to weather the pandemic and plan for the future. This should also encourage investment...More...
Benefit conditions – annual parties and events19/11/2020
Now is usually the time that businesses are planning Christmas parties for staff as well as possibly for partners/spouses, clients and prospective clients. Of course, with the continued pandemic and various lockdowns Christmas is looking pretty much cancelled this year. However, we have set out the benefit conditions for annual parties...More...
Benefit conditions – Trivial benefits19/11/2020
The trivial benefits in kind (BiK) exemption applies to small non-cash benefits like a bottle of wine or a bouquet of flowers given to employees or any other benefit in kind classed as 'trivial' that falls within the exemption.
Although the benefit is defined as ‘trivial’, employers should remember that this offers a great opportunity to...More...
Businesses within the scope of VAT in the UK 19/11/2020
The VAT system is policed by HMRC who can and do levy penalties for breaches of the legislation.
There are four conditions that must be satisfied in order for an activity to be within the scope of UK VAT.
These conditions are that the activity:
Is a supply of goods or services
That the supply takes place in the UK
Is made by a...More...
HM Treasury instructions re CJRS19/11/2020
An updated Treasury Direction under sections 71 and 76 of the Coronavirus Act 2020 concerning the extended Coronavirus Job Retention Scheme (CJRS) was published on 12 November 2020. The CJRS was due to come to an end on 31 October 2020 but has now been extended until 31 March 2021.
Effective 1 November 2020, employees will receive up to...More...
Scottish Budget 202119/11/2020
Scotland’s Finance Secretary, Kate Forbes, has announced that the Scottish Government’s Budget will be published for 2021-22 on 28 January 2021. The date has been selected in order to allow the Scottish Government time to prepare for the new tax year.
This is the second time that Scotland has held a Budget before the rest of the UK. The...More...
Do you need a customs agent?18/11/2020
If your business acquires goods or sells goods to the EU, and you have no import/export trade with non-EU countries you probably have no experience of dealing with the raft of red tape involved in clearing goods through customs and settling any duties or VAT payable.
Affected businesses will need to abide by the new regulatory situation...More...
Those who shout loudest18/11/2020
Many of the business disruption grants that have become available in the last few weeks are being distributed by local authorities. They include support for:
Businesses obliged to close due to local or national lockdown and
Businesses that have been severely affected by local or national restrictions but are still trading.
Coding out debts deadline12/11/2020
The coding threshold entitles tax payers to have tax underpayments collected via a tax code, provided they are in employment or in receipt of a UK-based pension. The coding applies to certain debts such as Self-Assessment liabilities, tax credit overpayments and outstanding Class 2 NIC contributions.
Instead of paying off debts in a lump...More...
Protection for landlords and tenants12/11/2020
The government guidance for landlords and tenants as a result of the coronavirus pandemic has been updated. The Coronavirus Act 2020 provides protection to social and private tenants by delaying when landlords can start proceedings to evict tenants.
To give tenants greater protection from eviction, landlords are required to provide...More...
Further support for mortgage borrowers12/11/2020
The Financial Conduct Authority (FCA) has announced new proposals to ensure that lenders provide tailored support to mortgage borrowers who continue to face payment difficulties due to the COVID-19 crisis. This follows the additional government measures announced over recent weeks to control the spread of coronavirus.
Payment holidays to...More...
Holiday entitlements if furloughed12/11/2020
The Coronavirus Job Retention Scheme (CJRS) commonly known as the furlough scheme is open to all UK employers and will now run until 31 March 2021. From 1 November 2020, employees will receive up to 80% of their salary for hours not worked with a review date in January.
One common question concerns holiday pay entitlement if furloughed....More...
Business Asset Disposal Relief 12/11/2020
Business Asset Disposal Relief used to be known as Entrepreneurs’ Relief before 6 April 2020. The relief was renamed in Finance Act 2020. The name change does not affect the operation of the relief.
Business Asset Disposal Relief applies to the sale of a business, shares in a trading company or an individual’s interest in a trading...More...
VAT – transfer of business as going concern12/11/2020
The transfer of a business as a going concern (TOGC) rules concern the VAT liability on the sale of a business. Normally the sale of the assets of a VAT registered or VAT registerable business will be subject to VAT at the appropriate rate.
Where the sale of a business includes assets and meets certain conditions the sale will be...More...
Company trading losses 12/11/2020
Corporation Tax relief may be available where a company or organisation makes a trading loss. The loss may be used to claim relief from Corporation Tax by offsetting the loss against other gains or profits of the business in the same or previous accounting period.
The loss can also be set against future qualifying trading income. Any...More...
New Furlough Scheme guidance published11/11/2020
The detailed Furlough Scheme rules were updated 10 November 2020.
To use the extended scheme - to 31 March 2021 - the steps that are required are:
Check if you can claim
Check which employees you can put on furlough
Steps to take before calculating your claim
Calculate how much you should claim
Claim for your employees’ wages...More...
UK and London Living Wages increase11/11/2020
The Living Wage Foundation has announced that its UK Living Wage has risen by 20p per hour from £9.30 to £9.50 per hour. Its London Living Wage has risen by 10p per hour from £10.75 to £10.85 per hour. Over 250,000 UK workers will now receive a pay rise as a result.
The Living Wage Foundation’s real Living Wage is an hourly rate which it...More...
Shielding guidance for the clinically extremely vulnerable11/11/2020
Shielding for clinically extremely vulnerable people was paused in England on 31 July 2020. However, the government has now updated its guidance on shielding and protecting people who are clinically extremely vulnerable from COVID-19 to cover the period of the new national restrictions from 5 November to 2 December 2020.
Whilst there is...More...
Barter your way through COVID disruption10/11/2020
While we wait for the magic-bullets that promise to reduce the impact of COVID - vaccines etc - should we be exploring ways to exchange goods and services with our suppliers and customers?
Barter is defined as: the exchange of goods and services without using money.
Perhaps a decorator could repaint the outside of a local restaurant in...More...
Getting the most out of digital data10/11/2020
One of the great benefits of data stored in an electronic format is that it can be sorted in an endless array of reports. This offers business owners who have invested in accounts software a range of options.
Once you have input basic accounts information, transactions, from your:
you can use...More...