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VAT TREATMENT OF DEPOSITS

HMRC, VAT

It is fairly common, particularly in the summer holidays, to pay a deposit when booking a hotel or self-catering accommodation but how should the deposit be accounted for? HMRC have confirmed that the hotel has the option of charging VAT according to the ‘basic tax point’ (dates of the stay) rather than the ‘actual tax […]

WHAT DOES THE 5% TEMPORARY VAT RATE APPLY TO?

HMRC

The temporary 5% rate applies to the following supplies, but is not an exhaustive list: Catering, including hot takeaway food Accommodation in hotels, guest houses and similar places Tourist attractions such as theme parks, zoos, theatres and cinemas Note that as far as catering is concerned, the 5% rate only applies to food and non-alcoholic […]

MORE DETAILS ON HOSPITALITY VAT REDUCTION

HMRC

When the Chancellor announced a temporary cut in the rate of VAT for the hospitality sector and attractions in his Summer Statement on 8 July there were a number of areas that needed clarification. The reduction applies to supplies made between 15 July 2020 and 12 January 2021. HMRC have now set out more details […]

KEY CONDITIONS FOR NEW “FLEXIBLE FURLOUGH”

HMRC

Only those employees who have been furloughed and included in a claim under the original CJRS scheme may be included in a claim for the new flexible furlough. That means they must have been furloughed on or before 10 June to allow a full 21 days prior to the end of the original scheme. A […]

CARRY BACK TO PREVIOUS ACCOUNTING PERIOD

HMRC

Where company profits are below the £1.5 million limit then QIPs will not be due but they may still be able to make a claim to set a loss against profits of the previous accounting period and obtain a tax repayment where losses are anticipated. We can of course help you make a claim and […]

REFUNDS OF QUARTERLY INSTALMENT PAYMENTS

HMRC

million are required to make quarterly instalment payments (QIPs) of their corporation tax liability much earlier than the normal payment date which is 9 months after the end of the accounting period. For year ended 30 June 2020 a company with profits between £1.5 million and £20 million would be required to pay 25% of […]

HMRC MAY ALLOW TAX REFUNDS FOR ANTICIPATED COMPANY LOSSES

HMRC

HMRC have recently announced that they may allow limited companies to make claims for loss relief and tax refunds even though the current accounting period has not yet ended and the corporation tax return has not been submitted. This will be available to companies of all sizes but they will be required to provide evidence […]

SECOND SELF-EMPLOYED INCOME SUPPORT GRANTS TO BE PAID IN AUGUST

HMRC

On 29 May the Chancellor announced that the grant scheme to support the self-employed would also be extended with a further payment based on 70% of average profits for the 3 years ended 2018/19, limited to £6,570 rather than £7,500. The eligibility criteria remain broadly the same as the first grant claim. Self-employed profits in […]

NEW AUTHORISED ECONOMIC OPERATOR PORTAL OPENS 1 JUNE

HMRC

The Government are still committed to the transitional Brexit period ending on 31 December 2020 and businesses trading with the EU need to make sure they are ready for major changes. If you’re submitting an application for Authorised Economic Operator (AEO) status from 1 June 2020, you must submit them through the EU Customs Trader […]

P11D FORMS STILL DUE BY 6 JULY

HMRC

Despite the coronavirus lockdown HMRC have announced that they will still expect P11d forms reporting expenses and benefits to be submitted by the normal 6 July deadline. Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee’s duties. Dispensations from reporting […]