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SECOND HOME BUYERS AND BUY-TO-LET LANDLORDS WELCOME SDLT CUT

Money Matters, Tax

Although the temporary increase in the Stamp Duty Land Tax (SDLT) threshold to £500,000 was aimed at those buying their main residence, it also benefits those buying a second or subsequent property where there is a 3% supplementary charge. Thus, the rate of SDLT on a second home costing up to £500,000 is now 3%. […]

CHANGES TO CJRS “FURLOUGH” CLAIMS

Employers

Note that for the month of August the Government will continue to pay 80% of employees’ regular pay for hours that they are furloughed but will no longer pay the associated employer NICs and pension costs. The government support then reduces to 70% in September and 60% in October. Contact us if you need help […]

HIGH INCOME CHILD BENEFIT CHARGES NOT VALID

HMRC, Tax

A recent tax tribunal has ruled against HMRC who were seeking to raise tax assessments for the High Income Child Benefit Charge (HICBC) for earlier years that had not been reported to HMRC. HICBC is a special tax charge that applies where one member of a couple in receipt of child benefit receives income in […]

INTERACTION WITH VAT FLAT RATE SCHEME

HMRC, VAT

Small businesses with turnover below £150,000 may join the VAT flat rate scheme which makes their VAT accounting much simpler as they merely pay HMRC a percentage of their VAT inclusive turnover. The temporary reduction in the rate of VAT from 20% to 5% reduces the flat rate percentages for affected businesses as set out […]

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 […]

DIARY DATES OF MAIN TAX EVENTS JULY/AUGUST 2020

Tax Diary

Date What’s Due 01/07/20 Corporation tax for year to 30/09/19 (unless quarterly instalments apply) 05/07/20 Last date for agreeing PAYE settlement agreements for 2019/20 employee benefits 05/07/20 Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2019/20 06/07/20 Deadline for forms P11D and P11D(b) for 2019/20 […]

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 […]