Moore Accountancy February 2021 Newsletter

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Moore Accountancy Update

TEAM UPDATE

We usually spend February going through our processes and catching up with clients who we were unable to speak to in January due to the Self Assessment deadlines.

We received some useful feedback about how we communicate with you, how the portal works and who the main points of contact are for each service we provide.
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There is a plan to send out an update on the MyDocSafe portal usage before the next tax year, so please look out for an email in due course.

The Team
Susie, our office administrator will often be the person you hear from most as she ensures that client work is managed and dealt with. She is the liaison point for when company and self assessment information comes in.

Katie works primarily with companies and self assessments. She also undertakes client meetings and deals with adhoc queries.

Catherine also works with companies and self assessments, but has a focus more on the latter

Luke helps clients with payroll, VAT returns, bookkeeping and company secretarial work, so if we support you with any of these services then you are likely to hear from him on a regular basis.

Lucy works with Luke and is also the usual point of call for setting clients up on cloud accounting software such as QuickBooks or Xero. Currently she is on extended leave, so her workload has been shared across the team.

Sid mainly works on limited companies and on adhoc work such as business plans, management accounts, and covering any client work necessary.

The info@mooreaccountancy.co.uk email is a centralised email address, which we all have access to. As a general rule we aim to respond within 2 working days, although this is subject to when the team member is online and the current issues with homeschooling and homeworking.

Hopefully the summary has reminded you of who is more likely to be sending you an email :)

We will send our next newsletter shortly after the Chancellor’s budget speech, as there may well be dramatic changes which are likely to affect businesses and individuals in a range of ways.

If you have missed any of our previous newsletters, then our website has a backlog of them here.

VAT ON PURCHASES FROM THE EU

Here is a quick reminder of the rules if you purchase goods from the EU either privately or as a business.

Before Brexit, if anyone purchased goods from the EU on an online platform (say Amazon or E-bay), VAT was paid at the rate charged by the country you purchased the item from. VAT would have been applied at the point of purchase and customers paid the price they saw advertised. In addition many EU businesses selling goods online were below the VAT threshold and there was no VAT charged.

Now all EU sellers have UK VAT charged automatically by online platforms that they use, and this is why some prices have increased by 20%. In addition any purchases from the EU over £135 will have VAT payable by the purchaser at the point of delivery, which could be your doorstep!

In addition because of the customs documentation required some sellers have increased their prices to cover the costs, whilst we understand that some have ceased selling to the UK completely.

Please therefore check your invoice or discuss the total cost with your supplier before you make a commitment to purchase.

TWO KEY UPCOMING CHANGES TO READ ABOUT

VAT reverse charge for construction and building services - from 01/03/21
Off-payroll working rules (IR35) for the private sector - from 06/04/21

VAT reverse charge for construction and building services - from 01/03/21
Every VAT registered construction business should have received an individual letter in January 2021, advising them to check if they might be liable for the reverse charge. If they are liable, they should start to prepare now.

Read our article on what this means here - https://mooreaccountancy.co.uk/cis-vat-domestic-reverse-charge-effective-01-03-21/

Off-payroll working rules (IR35) for the private sector - from 06/04/21
This is a roll out of what happened to the public sector a few years ago. Originally planned for April 2020, it has been delayed due to C-19.

If you are a contractor working through a personal service company (limited) for a large end client, then this is likely to affect you.

Effectively, the options are to become an employee, to work through an umbrella company or to invoice via your limited company but be taxed like an employee.

See our article here, on what you need to consider - https://mooreaccountancy.co.uk/ir35-for-the-private-sector-effective-april-2021/

If you think either of these changes will affect you, then contact us straight away as changes may need to be made in your record keeping, or even business structure.

P9 NOTICE OF CODING

HMRC will begin sending out tax code notices via email from now until w/c 07/03/21.

The notice advises that the coding for the tax year starting 6 April 2021 can be viewed online. To get these emails make sure your email address is up to date.

When signing into the online account to view the P9 notices, make sure the correct tax year is selected from the dropdown, 2021 to 2022.

If the P9 notices are still not showing, sign out and sign back into the account the following day. This should allow the P9s to be viewed online.

Please check these carefully as any tax deducted from your employed income will be based on these notices.

Ensure that you understand the reason for any addback or adjustment (for eg P11d benefits, pension contributions, underpaid tax, etc).

If we file your personal tax return and you are unsure if your tax coding notice looks correct then let us know so we can make an assessment.

VAT DEFERRAL NEW PAYMENT SCHEME

If you deferred VAT due from 20 March 2020 to 30 June 2020 and still have payments to make, you can opt into the VAT deferral new payment scheme to pay your deferred VAT over a longer period.

The scheme is expected to open 23/02/21 and close at the end of June 2021. If you opt-in you can make up to 11 smaller monthly instalments, interest free.

You can opt into the scheme online without the need to call HMRC. Get more information about VAT deferral using the link here - https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19.

However, if you can pay your deferred VAT by 31/03/21 you should do so.

KICKSTART SCHEME GRANT

If you're an employer looking to create job placements for young people, you can apply for funding as part of the Kickstart Scheme.

The scheme has changed, and you no longer need a minimum of 30 job placements to apply directly for a grant.

You can now apply for a Kickstart Scheme grant by either:

applying online yourself.
getting help from a Kickstart gateway who is already working with the Kickstart Scheme.

There is a new guide for employers and this can be seen here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/958223/kickstart-scheme-employer-guide.pdf

DON’T BE LATE IN PAYING YOUR PERSONAL TAX BILL

2019/20 income tax, CGT, class 2 and 4 NIC liabilities should have been paid by 31/01/21 unless you have agreed a payment plan with HMRC.

Note that if the balance is still unpaid at the end of February 2020, a 5% surcharge penalty is added in addition to the normal interest charge unless a payment plan has been agreed.

KEY DATES

19/02/21 - PAYE & NIC deductions for month ended 05/02/21 (January payroll)

28/02/21 - Corporation tax due for year to 31/05/20

01/03/21 - 5% penalty imposed on 2019/20 income tax, CGT, class 2 and 4 NIC still unpaid at this date unless a payment plan has been agreed with HMRC

19/03/21 - PAYE & NIC deductions for month ended 05/03/21 (February payroll)

31/03/21 - Corporation tax due for year to 30/06/20

For any businesses struggling with payments, please contact HMRC to see if they will agree a Time To Pay arrangement - https://www.gov.uk/difficulties-paying-hmrc

Copyright © 2021 Moore Accountancy Limited, All rights reserved.

Our mailing address is:
info@mooreaccountancy.co.uk

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Moore Accountancy · 1 Northway · Altrincham · Cheshire, WA14 1NN · United Kingdom