Weekly update 2 July 2021
Welcome to the latest edition of our weekly update.
Small Business Updates
The federation of small businesses is calling on the government to extend its support for small firms after the lifting of lockdown restrictions was delayed.
- Calls to extend Covid support for small businesses.
- Restrictions were meant to be lifted on June 21 but this was delayed until July 19.
- The furlough scheme is now being phased out, while firms will also start paying deferred VAT.
For self employed individuals the low income tax reform group is warning those who have claimed grants that they are subject to income tax and self-employment national insurance contributions.
- LITRG releases guidance on how SEISS is taxed
- The first three SEISS grants must be included as taxable income in the 2020/21 tax year.
- Class 2 NICs must be paid when profits are above the Small profit Threshold which is £6,475.
For employees HMRC has reaffirmed that it is not changing its approach to tax relief on travel expenses to temporary workplaces in light of the impact of Covid-19.
- 24-month rule on temporary workplaces unchanged by Covid
- Several professional bodies had requested clarification from HMRC.
- If the placement exceed 24 months, the employee is no longer entitled to any relief.
And finally the post pandemic economic recovery is likely to push inflation above 3% for temporary period according to Bank of England policy committee.
- BoE: Recovery to push inflation above 3%
- The committee said CPI inflation would reach this rate by the end of 2021.
- Expectations remain that ‘’the economy will experience a temporary period of strong GDP growth.
- The treasury is considering investing pension pots into start-ups.
- 800,00 home workers have claimed up to £125 in tax relief since April.
- Claims for furlough days in June 2021 must be made by July 14, 2021.
- Peer Networks is a free networking programme for SME leaders keen to develop their organisations.
Upcoming Key dates
- July 1: Corporation tax due for accounting periods ended 30 September 2020 (where not payable by instalments)
- July 6: P11Ds and P11D(b) for 2020-21 due to be submitted to HMRC and copies of P11Ds to be provided to employees
- July 7: VAT returns and payments due for quarter ended 31 May 2021
- July 14: Coronavirus Job Retention Scheme (CJRS) claims due for June 2021
- July 19: PAYE, NICs, student loan deductions and CIS deductions due for month ended 5 July 2021 (paid non-electronically, July 22 if paid electronically)
- July 31: Personal and trustee second self-assessment payments on account due for 2020-21
- July 31: Corporation tax return due for accounting periods ended 31 July 2020
- July 31: Deadline for amending corporation tax returns for accounting periods ended 31 July 2019
- July 31: Inheritance tax due for deaths in January 2021
Our service to you
If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.