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DIARY OF MAIN TAX EVENTS MAY/JUNE 2021

Tax Diary

Date What’s Due 1/05 Corporation tax payment for year to 31/7/20 (unless quarterly instalments apply) 19/05 PAYE & NIC deductions, and CIS return and tax, for month to 5/05/21 (due 22/05 if you pay electronically) 31/05 VAT for Returns ended 31/03/21 (due 07/05 if paid electronically, 12/05 if paid by direct debit) 1/06 Corporation tax […]

MAKING TAX DIGITAL EXTENDED TO MORE BUSINESSES

VAT

Currently only VAT registered businesses making taxable supplies in excess of the £85,000 VAT registration threshold are mandated to comply with Making Tax Digital (MTD) rules. Those rules require the business to keep digital business records and send VAT returns using MTD-compatible software. MTD for VAT is now being rolled out to all VAT registered […]

DETAILS OF FOURTH SELF-EMPLOYED INCOME SUPPORT GRANT

Money Matters

Like the CJRS scheme for employers the Self-Employed Income Support Scheme (SEISS) has been extended to September 2021 and details of claims for the fourth grant have now been released. This fourth grant covers February, March and April 2021. There will then be a fifth grant covering May to September 2021. The latest grant allows […]

NO EMPLOYERS NICS FOR A YEAR IF YOU HIRE EX-MILITARY STAFF

Employers

The Government have announced a one-year exemption from paying employers national insurance contributions (NICs) where military veterans are recruited by civilian employers. Employers can claim relief if they employ a veteran during the qualifying period. The qualifying period starts on the first day of the veteran’s first civilian job since leaving the regular armed forces […]

ASSOCIATED COMPANIES COUNT FOR NEW CORPORATION TAX RATES

Tax

A 25% rate of corporation tax will apply to all of a company’s profits if they exceed £250,000 from 1 April 2023. The 19% rate will continue to apply where profits are below £50,000. The marginal rate that applies between those limits will be 26.5%. Those upper and lower limits are divided by the number […]

DETAILS OF LATEST CJRS “FURLOUGH” GRANTS

Employers

The fourth version of the CJRS “furlough” grant scheme starts on 1 May 2021 and will run until 30 September with employees affected continuing to be supported such that they are entitled to be paid at least 80% of their “usual pay” subject to a limit of £2,500 a month for hours not worked. The […]

VAT REGISTRATION LIMIT FROZEN AT £85,000 UNTIL 1 APRIL 2024

VAT

The VAT registration limit normally goes up each year in line with inflation but will remain at £85,000 for a further two years. Arguably this makes it easier for businesses to assess whether or not they are required to register for VAT as it is no longer a moving target.

NATIONAL INSURANCE RATES

Employers, HMRC

The national insurance contribution (NIC) rates and bandings were announced 16 December 2020 to take effect from 6 April 2021. Employees and the self-employed will not pay national insurance contributions (NIC) on the first £9,570 of earnings for 2021/22, an increase of £1 a week. The employee contribution rate continues to be 12% up to […]

NO CHANGES TO INCOME TAX RATES AND PERSONAL ALLOWANCE FROZEN

HMRC, Tax

The basic rate of income tax and higher rate remain at 20% and 40% respectively, and the 45% additional rate continues to apply to income over £150,000. The personal allowance and higher rate threshold have been increased in line with inflation to £12,570 and £50,270 respectively for 2021/22. These thresholds will then be frozen until […]

SELF-EMPLOYED INCOME SUPPORT GRANTS ALSO EXTENDED

Money Matters

In line with the further extension of the CJRS furlough scheme for employees the chancellor has also set out further support for the self-employed. We had been waiting for the details of the calculation of the fourth SEISS grant covering the period to 30 April and we now know that the support will continue to […]