The LB Weekly Roundup – 12 March 2021
Thank you to those who attended our weekly roundup webinar this morning! The recording is at the bottom of this blog 👇
Key points and Budget Highlights from today’s Weekly Roundup webinar:
- No changes to income tax, national insurance, or VAT rates; but as income is expected to rise, more people will pay tax or go into the higher rates.
- Corporation tax (CT) rates to increase to 25% on profits over £250,000 from April 2023; CT rate at 19% remains for smaller companies with profits under £50,000. Marginal relief on CT for profits between the two levels.
- Super-deduction for investment in new equipment; from 1 April 130% tax relief for companies only.
- Three year carry back of trading losses – See: https://www.gov.uk/government/publications/extended-loss-carry-back-for-businesses
- VAT registration limit frozen at £85,000 until 1 April 2024.
- 5% VAT rate for food, attractions, accommodation extended – See details here: https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions
- Stamp Duty Land Tax thresholds extended.
- Apprenticeship schemes extended.
- New grants for high street businesses and hospitality sector – See: https://www.bighospitality.co.uk/Article/2021/03/01/Budget-to-include-5bn-restart-grant-scheme-for-hospitality-and-High-Street-businesses
- New business recovery loan scheme – See: https://www.gov.uk/guidance/recovery-loan-scheme
- Furlough scheme extended to 30 September – See: https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme
- Self-employed income support grants extended – See: https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension
- From 2023 changes to late filing penalties for tax – linked to a percentage of the tax, the percentage increasing as time goes on.
- Government continuing to tackle tax avoidance schemes, changes to penalties, and new powers for HMRC to obtain information from financial institutions.
- Free rapid tests for all businesses for regular workplace testing – available to all businesses, including those with fewer than 50 employees. Register interest by 31 March to access free workplace testing. See: https://www.gov.uk/government/news/free-rapid-tests-for-all-businesses-for-regular-workplace-testing
- Continuation of the home office equipment expenses COVID-19 easement for the 2021-22 tax year – was due to end on 5 April 2021 but will now be extended to have effect until 5 April 2022. See: https://www.gov.uk/tax-relief-for-employees/buying-other-equipment
- Kickstart Scheme update – You no longer need a minimum of 30 job placements to apply directly for a grant. See: https://www.gov.uk/guidance/apply-for-a-kickstart-scheme-grant
- Common mistakes on a VAT return…
- Poor record keeping
- Partial exemption rules not being applied correctly or at all
- Failure to pay over VAT on deposits on receipt
- Not spotting the requirement to repay VAT previously claimed on unpaid purchase invoices older than 6 months.
- Incorrect reporting of exempt and zero-rated transactions
- Not registering for VAT in a timely manner when exceeding the turnover threshold of £85,000
- Transactions relating to land and property not being accounted for correctly
- VAT claimed incorrectly on business entertainment
See the full blog here: https://www.lewisbrownlee.co.uk/vat-common-queries-and-mistakes
- 23 February to 21 June – VAT Deferral Payment Scheme open
- 15 March – Deadline for February Furlough claims
- 31 March – Pay last years VAT (or have agreed a payment plan)
- 31 March – Deadline to apply for a bounce back loan or CIBLs loan (if not already had one, or a top up if you need more)
- 6 April – Changes to off-payroll working (IR35) implemented – See our video on this here: http://LBLink.uk/LBTP_IR35
Register for the next LB Roundup – 19th March at 9.30am
To register for the next LB Weekly Roundup please head to: http://LBLink.uk/WKLYRNDUP_REG
If you have any questions or topics you would like us to cover in future sessions, email us at [email protected] to let us know what they are!
The LB Business Broadcast – Podcast
You can also listen to our Weekly Roundup recordings on our Podcast!
It’s available on Apple, Spotify and Google – just search for ‘The LB Business Broadcast‘.