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Tax Diary SEPTEMBER/OCTOBER 2020

Tax Diary

Date What’s Due 01/09/20 Corporation tax for year to 30/11/19 (unless quarterly instalments apply) 19/09/20 PAYE & NIC deductions, and CIS return and tax, for month to 05/09/20 (due 22/09 if you pay electronically) 30/09/20 VAT for Returns ended 31/07/20 (due 07/09 if paid electronically, 12/09 if paid by direct debit) 01/10/20 Corporation tax payment […]

VAT DEFINITION OF “MOTOR CAR”

VAT

For VAT purposes the definition of a motor car has been amended several times over the years. The current definition states:   “Motor car” means any motor vehicle of a kind normally used on public roads which has three or more wheels and either: a)    is constructed or adapted solely or mainly for the carriage of […]

COMPANY VANS WERE MOTOR CARS

HMRC

The Court of Appeal have now ruled on the tax status of certain vehicles provided to employees of Coca Cola. The court has upheld the HMRC view that vans with windows and a second row of seats behind the driver are not goods vehicles but motor cars for benefit in kind purposes. Consequently, the income […]

CERTAIN PROPERTY BUSINESS OWNERS ARE LIABLE TO CLASS 2 NICs

HMRC

Class 2 National Insurance Contributions (NICs) are currently paid at the rate of £3.05 per week by self-employed earners. A person who is liable to Income Tax on the profits arising from the receipt of property rental income will only be a self-employed earner for NICs purposes if the level of activities carried out amounts […]

MTD FOR VAT TO BE EXTENDED TO ALL VAT REGISTERED BUSINESSES IN 2022

Tax, VAT

Since 2019, the vast majority of VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) have been mandated to keep digital VAT records and send returns using Making Tax Digital (MTD)-compatible software. From April 2022 these requirements will apply to all VAT-registered businesses. It has also been announced that MTD for Income Tax […]

NUMEROUS FRAUDULENT CJRS CLAIMS IDENTIFIED

HMRC

HMRC’s CJRS fraud reporting portal had received over 2,000 reports of wrongful claims. Examples of such wrongful claims include; Claiming furlough payments for staff who are continuing to work Furloughing staff but asking them to work “voluntarily” on an unpaid basis. Claiming furlough payments for “ghost” employees, and those who left employment before 19 March […]

NOTIFY HMRC OF OVERCLAIMED CJRS “FURLOUGH” GRANTS WITHIN 90 DAYS

HMRC

The calculation of Coronavirus Job Retention Scheme grants has proven to be complex, particularly as HMRC frequently changed the rules and the method of computation. Consequently, many errors have arisen and need to be corrected. The latest Finance Act requires employers to notify HMRC within 90 days where it turns out that they were not […]

DIARY OF MAIN TAX EVENTS AUGUST / SEPTEMBER 2020

Tax Diary

Date What’s Due 01/08/20 Corporation tax for year to 31/10/19 (unless quarterly instalments apply) 19/08/20 PAYE & NIC deductions, and CIS return and tax, for month to 05/08/20 (due 22/08 if you pay electronically) 31/08/20 VAT for Returns ended 31/06/20 (due 07/08 if paid electronically, 12/08 if paid by direct debit) 01/09/20 Corporation tax payment […]

RUMOURS OF CGT INCREASES

HMRC, Tax

There has been a lot of speculation in the Press that the Chancellor may introduce radical changes to capital gains tax to start to repay the substantial Government borrowings to support businesses and employees affected by the coronavirus pandemic. It has been suggested that the current £12,300 CGT annual exemption will be reduced and the […]

REPORTING PROPERTY GAINS WITHIN 30 DAYS

HMRC, Tax

Since 6 April 2020 where UK residential property is disposed of, the resulting capital gain needs to be reported and the capital gains tax paid within 30 days of completion of the disposal. There have been a number of teething problems with the new online reporting system and HMRC stated that there would be no […]