Accountancy News

Get ready for 12.5% VATMost supplies made by the hospitality industry will carry 12.5% VAT from 1 October 2021.Some businesses will have to deal with four rates of VAT in their accounting systems from 1 October 2021.This has not happened since 1979 and will hopefully not happen again after 31 March 2022 when the temporary 12.5% rate for most sales made by the hospitality industry will end and the 20% rate will resume on 1 April 2022. We will then be back to three VAT rates: 0%, 5%, and 20%.Affected supplies
In a nutshell, the supplies made by the hospitality industry that have been subject to 5% VAT since July 2020 will become liable to 12.5% VAT for the period between 1 October 2021 and 31 March 2022.

There is a certain kind of tax relief that is intended for import VAT and it is known as the Low-Value Consignment Relief (LVCR). With the implementation of LVCR, UK businesses are not obliged to pay for import VAT if the value of the shipment is less than £15.

UK residents who are trying to dispose their UK residential property should be aware of the new rules which requires them to report and make a payment for their CGT (Capital Gains Tax) liability with a 30-day period of completion. This comes as a shock to many people. In fact, during the last six months of 2020, HMRC issued fines to approximately 13,113 people who failed to meet the new deadlines. The total fines amounted to more than £1.3m.

HMRC will have to examine closely the coronavirus support provided to accountants and their clients. In this connection, Elizabeth Whiteley provided a summary of the guidelines and what could be the possible sanctions given to accountants and their clients if they want to take advantage of the SEISS (Self-Employed Income Support Scheme).

During the early period of the pandemic, most businesses have deferred VAT payments. If they still remain outstanding until now, then businesses should act immediately since penalties will be imposed by the end of June. Furthermore, if you want to take advantage of further deferrals, then you should act by June 21.

In order to streamline the processing of those who are making claims under the coronavirus job retention scheme (CJRS), specifically for 16 to 99 employees, HMRC has come up with a time-saving template. Unfortunately, for some people, the arrival of the template is a bit too late. 

As a business owner, you might be having some difficulty in understanding VAT, regardless if you already have some experience of it. If it is your first time to register for VAT, then its worthwhile to consider its effect on your pricing.

The new Recovery Loan Scheme (RLS) is part of the government’s announcement during the March 2021 budget. It’s goal is to offer financial support to UK businesses so they can recover, restart, and develop. This could be a real lifeline, most especially for independent and small businesses.

As a taxpayer, you should be aware of the latest phishing scam that you might discover on your inbox. This is in connection with the fourth SEISS (Self-Employed Income Support Scheme) grant that is recently opened for claims.