Welcome to the latest edition of our weekly update.

Tax Reporting

Reforms to the tax system which will coming to force by 2023 Which means businesses will be tax on profit, arising in tax year rather than profit on accounts ended in a tax year

• Government announces simplified tax reporting for self-employed and small business.
• The changes will allow self-employed people to spend more time growing their business.
• It will align the way self-employed profits are taxed with other forms of income, such as property.

Customs Changes

HMRC is encouraging UK businesses to prepare for customs changes which will be introduce over the coming six months, more than 160,000 business will be contacted.

• Helping businesses to prepare for full customs control in January 2022
• Business will need to take steps to ensure they can continue trading with the EU.
• These include making supplementary declarations and appointing a customs intermediary.

VAT Treatment

HMRC is also clarified that VAT treatment of supply of electricity for electric vehicle outlining when input tax can be recovered.

• VAT liability of charging electric vehicles
• You can recover the input tax if you are a sole proprietor and charge at home for business purposes.
• Employees charging at their employer’s premises can recover VAT for the supply of electricity used.

Economy Growth

According to the IMF’s latest economic outlook report, the UK economy will expand 7% this year, the   joint fastest growth amongst major economies.

Covid recovery: IMF predicts UK economy to grow faster than expected

The IMF’s forecasts for 2021 and 2022 are now closer to those made by the bank of England in May.

The forecast is a sharp increase from the 5.3% predicted in the previous report in April.

Our Latest Snippets

• HMRC: information about the VAT deferral penalty
• You must pay the penalty within 30 days of the date of the penalty assessment.
• You can appeal against a penalty if you have a reasonable excuse.
• Employers must start making a 20%contribution under furlough from August 1.
• Normal minimum pension age to rise from age 55 to57 in April 2028.

Upcoming Key Dates

August 1: Employers must start making a 20% contribution under furlough.

August 2: Forms P46(CAR) for the quarter ended July 5 to reach HMRC.

August 7: VAT returns and payments due for Accounting Quarter ending June 30.

August 22: Deadline for electronic remittance of PAYE, NICs and CIS.