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

Please see our Budget Report – or watch last weeks roundup for a more detailed summary of business measures.

• 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  

Key dates:

• 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!