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Draft regulations to increase the National Minimum Wage published

06 Feb, 2020

The draft National Minimum Wage (Amendment) Regulations 2020 have been laid before Parliament and are due to come into force on 1 April 2020. The regulations will increase the various rates of the National Minimum Wage (NMW) and National Living Wage (NLW) as follows:

Reviewing clients using VAT Flat Rate Scheme

05 Feb, 2020

If you have clients that have been adversely affected by the new 'limited cost trader' test that was introduced on 1 April 2017, you should consider whether it will be more beneficial for them to leave the VAT Flat Rate Scheme (FRS) and revert to using traditional VAT accounting.

Businesses can leave the FRS at any time by notifying HMRC. To save any additional complications this is usually done at the end of their next VAT accounting period but can be done at any time. 

Businesses must also leave the scheme:

Reminder of important CGT change from April 2020

05 Feb, 2020

A major change to the way Capital Gains Tax (CGT) is reported and paid will come into effect from 6 April 2020.  Currently, the usual due date for paying any CGT owed to HMRC on property disposals is the 31 January following the end of the tax year in which a capital gain was made. From 6 April 2020, any CGT due on the sale of a residential property by a UK resident will need to be reported and paid within 30 days of the completion of the sale transaction.

Did you miss the Self-Assessment deadline?

05 Feb, 2020

Are you among the over 958,000 taxpayers that missed the 31 January 2020 filing deadline for 2018-19 Self-Assessment returns? If you missed the filing deadline you will be charged a £100 fixed penalty if your return is up to 3 months late, whether you owed tax or not for the 2018-19 year.

Farm payments during the transition period

05 Feb, 2020

The Chancellor recently announced that the level of funding for direct payments for farmers would continue for 2020 at the same rate as 2019. This has now been confirmed by the Department for Environment, Food & Rural Affairs (DEFRA).

This will help provide certainty to farmers allowing them to plan for the future, sow their crops and care for their livestock with confidence. The direct payments scheme forms the majority of spending under the CAP and provides subsidies to farmers based on the area of land under management.

Changes to NIC from April 2020

05 Feb, 2020

The Chancellor, Sajid Javid, has confirmed that a Conservative manifesto promise to increase the National Insurance contributions (NIC) thresholds to £9,500 will apply from April 2020. The increase, by more than 10% over the current year’s figure of £8,632, will apply to both the employed and self-employed.

Some 31 million taxpayers will benefit from this change with a typical employee saving around £104 and a self-employed person £78 in 2020-21.

Points to consider during transition period

05 Feb, 2020

Now that the formal Brexit withdrawal agreement is agreed, there will be changes to the rules for living, working, travelling and doing business in the UK and EU. These changes are expected to commence at the end of the transition period, from 1 January 2021.

While in the transition, the current rules on trade, travel, and business for the UK and EU will continue to apply.

Still time to plan for tax year 2019-20

05 Feb, 2020

As the deadline for submitting your 2018-19 tax return has passed, now is a good time to focus on the 2019-20 tax year. It is important to carry out an annual review and ensure that you have planned properly for the current tax year. This includes exploring any tax saving strategies that are available before the current tax year ends on 5 April 2020.

A number of readily available saving strategies are mentioned below:

Tax Diary February/March 2020

30 Jan, 2020

1 February 2020 - Due date for Corporation Tax payable for the year ended 30 April 2019.

19 February 2020 - PAYE and NIC deductions due for month ended 5 February 2020. (If you pay your tax electronically the due date is 22 February 2020)

19 February 2020 - Filing deadline for the CIS300 monthly return for the month ended 5 February 2020. 

19 February 2020 - CIS tax deducted for the month ended 5 February 2020 is payable by today.

1 March 2020 - Due date for Corporation Tax due for the year ended 31 May 2019.

Transporting goods out of the UK by road to or through the EU

29 Jan, 2020

HMRC has published a useful list to help businesses transport goods commercially when driving from the UK to or through Europe. In the short-term there will be a transition period during which all rules remain the same. The Government expects to have a trade deal in place with the EU by the end of the year.

The six points of action listed below are likely to be relevant once a trade deal with the EU is in place or in the case that negotiations falter.

Exporting goods to EU after 31 January 2020

29 Jan, 2020

In tandem with the list for importing goods, HMRC has published a useful list to help businesses be prepared to export goods from the UK to the EU after the 31 January 2020 Brexit date. In the short-term there will be a transition period during which all rules remain the same. The Government expects to have a trade deal in place with the EU by the end of the year.

The seven points of action listed below are likely to be relevant once a trade deal with the EU is in place or if negotiations falter.

Importing from EU after 31 January 2020

29 Jan, 2020

HMRC has published a useful list to help businesses be prepared to import goods from the EU to the UK after the 31 January 2020 Brexit date. In the short-term there will be a transition period during which all rules remain the same. The Government expects to have a trade deal in place with the EU by the end of the year.

The six points of action listed below are likely to be relevant once a trade deal with the EU is in place or in the case that negotiations falter.

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