Anna’s Accountancy Alerts – February 2020

Business

Brexit – Transition Period: –

The leaders of the UK and European Union signed the Withdrawal Agreement, and the UK left the EU on 31 January 2020.

Between 1 February and 31 December 2020, there will be an implementation period. HMRC has confirmed that there will be no changes to the terms of trade with the EU or the rest of the world during this time.  From 1 January 2021, the way businesses trade with the EU will change and HMRC is reminding businesses that they should prepare.

HMRC is advising businesses to: -.

  • make sure they have a UK Economic Operator Registration and Identification (EORI) number.
  • prepare to make customs declarations.

HMRC has posted letters to 220,000 VAT registered businesses advising them on the current position.

2020 Budget: –

Chancellor Sajid Javid previously announced that he will deliver the 2020 Budget on Wednesday 11 March 2020.

A Decade Of Excuses And Expense Claims: –

HMRC has compiled a list of the weirdest unsuccessful excuses from the last decade.

The list includes one taxpayer who claimed their mother-in-law was a witch who had cursed them, hamsters and dogs that had eaten the post and a taxpayer who was up a mountain without internet access.

HMRC also reported questionable expense claims including pet food for a Shih Tzu ‘guard dog’ and 250 days of claims for a £4.50 sausage and chips meal.

Off-Payroll Working: –

HMRC has now published draft secondary legislation for the off-payroll working rules that are due to come into force in April this year.

From 6 April 2020, the new tax rules will be extended to medium and large organisations in the private sector. The responsibility for assessing employment status will shift to the medium and large organisations engaging the individual worker via an intermediary.

The new draft legislation is open for consultation until 19 February 2020.

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