Weekly update 18 June 2021

Welcome to the latest edition of our weekly update.

This week, we have rounded up a number of news stories across SME schemes, employer updates, Covid support grants and pensions.

Furlough updates

Chancellor Rishi Sunak has rejected calls for an extension to the furlough scheme and business rates relief, despite the delayed easing of Covid-19 restrictions.

The easing of Covid restrictions has been delayed by 4 weeks.
At the start of July, employers will have to start contributing 10% of wages payable under furlough.

Import, Export & Customs

For businesses who deal with import, export and customs, HMRC has published information on how to minimise the duty payments when moving goods temporarily into and out of GB and NI.

More support for those moving goods temporarily out of GB and NI
A new webpage outlines what options are available to businesses.
Existing guidance on reliefs on customs duty and VAT for goods reimported to GB also updated.

PAYE RTI Penalties

HMRC: PAYE RTI penalties to remain risk-based. If you are an employer, HMRC has decided to continue the risk-based approach to PAYE late filing and late payment penalties throughout the 2021-2022 tax year.

HMRC confirm the continued approach in their latest employer bulletin.
Those who persistently file after the statutory filing date but within 3 days will be monitored

Inflation Rates

And finally, the UK inflation rate jump to 2.1% in May due to rise in clothing and fuel prices pushing it ahead of bank of England target.

UK inflation rate jumps to 2.1% in May
The largest annual upward contribution to inflation has come from transport costs.
The BoE said it expects inflation to hit 2.5% by the end of this year as the economy reopens.

Weekly snippets:

‘Triple lock’ pension pledge could cost Treasury £4bn.
The economy grew by 2.3% in April 2021.
GDP in April stood 1.2% above the initial recovery peak in October 2020.
The average cost of a rented home in Britain jumped to £1,054 per month in May.
The cost of renting grew at a record rate, the spike largest for bigger properties.

Upcoming Key dates

June 21: Last day to opt into the online VAT Deferral Payment Scheme.
June 22: Deadline for electronic remittance of PAYE, NICs and CIS.
June 30: Covid-19 one-year business rates holiday ends.
June30: CT61 quarterly period ends.

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.