AMD Accountancy News

The UK will be leaving the customs union on 31st December 2020. What happens next is dependant on whether or not we can secure a trades deal with the EU. Outcome 1:                We secure a free-trade agreement and carry on a tariff free relationship with the EU. Outcome 2: Customs declarations  From 1st January 2021 members of the EEA (European Economic Area) will need to make customs declarations whenever goods enter or leave the UK.  The simplest way to do this is by using an intermediary (custom agent, freight forwarder etc) Otherwise, a declaration can be made online via the CHIEF system ( Customs Handling of Import and Export Freight ) Duty Deferment A duty deferment account allows business to make a payment for tax and duties once a month rather than on every individual consignment EORI Number An Economic Operators Registration and Identification number will be required for businesses that move goods between the UK and EU. There are increased costs for someone without an EORI

There are big changes afoot, as far as filing tax returns and VAT returns are concerned. Currently, only those above the VAT threshold (Currently set at £85000) are required by law to submit their VAT Returns via MTD compliant software. From April 2022 , this changes to include those registered for VAT voluntarily ie below the threshold. If this includes you and you are worried about what this means and how to go about making the leap on to MTD software, please contact me on 07380667005 for a no obligation chat. From April 6th 2023 , self employed business owners turning over more than £10,000 will be required by law to keep MTD compliant records for income tax purposes. Every quarter (3 months) income and expenses for the business will need to be submitted to HMRC using MTD software. This is in stark contrast to the current way things are done: submitting one tax return by 31st January ever year. It will undoubtedly require a lot more organisation and time management. There are pot

Non-food retail sectors are finally showing pre-corona sales levels, with the Office for National Statistics estimating a near 14% increase in Juny 2020! After record declines in March and April, there has been a promising two months of strong growth. Unsurprisingly, the online growth of retail has been far higher. Online grocery sales are up by 5.3% compared to the beginning of the pandemic, and non grocery sales are up by 53.6%. Although this news is extremely positive, over all retail sales have fallen 15% on pre-pandemic levels. Still, the only way is up! Retail is on the up!

The FCA (Financial Conduct Authority) has confirmed further support for customers in receipt of high cost credit and motor finance. The recommendation is to pay if you are in a position to, however for those struggling: Firms will be asked to freeze or reduce payments for a further 3 months, upon being asked to by the customer. Pawnbrokers will be asked to extend the redemption period, assuming it has not already lapsed and also be asked not to sell on items within this period. The ban on repossessions will continue until 31st October 2020. These support schemes should not affect customer credit For further information please read the following article: FCA News on motor finance

Rishi Sunak announced in his summer budget statement, that he will be rolling out a scheme to help bring customers in to restaurants. The "Eat Out to Help Out" Scheme. This will be a government-led incentive whereby customers will receive 50% off of meals, up to a value of £10 per person, to dine out Monday-Wednesday. However, there was no mention of his much-speculated £500 voucher scheme, that would have provided £500 to adults and £250 to children nation wide, to be spent in a large number of retailers. Eat out Help out replaces £500 voucher scheme? Mirror article

ISA Penalties on the rise! With COVID-19 having affected so many of our finances, it is no surprise that record numbers of savers have been reaching in to their savings funds early in a desperate bid to keep afloat. Lifetime ISA's (LISAs) are a very economic way to save for your retirement. They are aimed at savers aged 18-50. Savers can invest up to £4000 per year in to a Lisa, with the government topping this up by a whopping 25%. However, there are only limited circumstances where a person may withdraw from their Lisa fund, and if they do not meet these criteria, they will be imposed with a penalty of 25%. (Due to Covid this has temporarily been reduced to 20% up until April 2021) You may only withdraw penalty free for: Buying their first home If they are aged 60+ If they are terminally ill and expected to pass away within 12 months Lifetime ISAs (Express article)