Weekly update 16 July 2021

Welcome to the latest edition of our weekly update.

Self-employed

The self -employed individuals claiming the fifth grant, you need to meet the criteria in three stages and work out two turnover figures for HMRC to calculate your entitlement.

Self-employed grant: Fifth grant turnover test
To make your claim, you will need to have two different turnover figures.
The grant is subject to income tax and self-employed National Insurance Contribution

Employed Allowance

For those claiming Employment allowance HMRC latest guidance state that rules related to connected companies do not apply to sole traders, partnership or single companies.

Connected companies and Employment allowance: Latest guidance.
You will still claim the allowance if your liability was then £4,000 a year.
You can only claim the Employment Allowance against one PAYE scheme you are responsible for

Tax Updates

HMRC has announced several changes to opt tax time limit which will now apply for decision made up 2 and including 31 July 2021.

Extended time limit for notifying an option to tax.
You do not need to own the land in order to opt to tax.
You may opt to tax in order to improve VAT recovery on capital expenditure relating to the property.

Economy Insights

UK GDP crept up for the fourth consecutive month in May, with an estimated rise of 0.8%

UK economy continues slow recovery.
Consumer and business confidence continues to recover, and the labour market is buoyant.
Growth remains well below the pre-pandemic level of 3.1%recorded in February 2020.

Our Latest Snippets

HMRC is encouraging UK business to prepare for customs changes from January 2022.
5 million jobs supported since pandemic onset.
HMRC has added a video on how to add your tax services to the business tax account.
Individuals, sole trader, limited companies and more can get a snapshot of their tax position.

Upcoming Key Dates

July 22: deadline for electronic remittance of PAYE, NICs and CIS
July 31: PAYE settlement agreement submission date.
July 31: all mortgage and consumer credit holidays will end.
July 31: the second payment on account for the 2020/21 tax year is due

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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.