AMD Accountancy News

 

From 15th July 2020, a temporary 5% VAT rate was granted to the hospitality sector by chancellor Rishi Sunak. It will run until 12th January 2021.  It will be a positive boost to many industries, including the following:  Cafes Pubs Restaurants Holiday accommodation theatres circuses fairs amusement parks concerts museums zoos cinemas exhibitions  Nandos, Pret A Manger, KFC, Mcdonalds, Whetherspoon and Starbucks, have all made the decision to slash prices, giving up to 100% of the reduction in VAT on to their customers. (15% reduction) Many other businesses will not pass on the reduction to their customers, instead choosing to use this to buffer themselves after the losses suffered through to COVID-19.  Anyone for a coffee? ....   

 From next April, IR35 status is going to be placed on EMPLOYERS within the medium to large private sector. Currently, the onus is on contractors to understand and report their IR35 status, and only within the public sector. In a landslide case, TalkSPORT presenter Paul Hawksbee has been ordered to pay HMRC £143,126 in unpaid tax and NICs. This relates to his 18 year employment whereby he presented for the same radio show, receiving his pay through his company Kickabout Productions Ltd; whilst acting as self employed. Mr Hawksbee has been proven to fall foul of the IR35 legislation, whereby an employee has to be given employment rights such as sick leave, holiday pay and pay taxes as any other employee would.      HMRC used the following to make their decision: MOO: Mutuality of Obligation and Control findings: The radio show had control over how and where Mr Hawksbee performed his work. He was required to work weekdays for 44 weeks of the year for the same radio co...

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 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