Anna’s Accountancy Alerts – Week 15 (13th – 19th July 2020)

Pretty freelance business woman seller working with computer in her startup small business.

VAT Liability Deferral Comes To An End

The VAT payment deferral period ended on 30 June 2020. This means you’ll need to:

  • Set-up cancelled direct debits as soon as possible to ensure you meet the next payment deadline;
  • Continue to submit VAT returns as normal, and on time;
  • Pay the VAT in full on payments due after 30 June;

Any VAT payments that were due and have been deferred between 20 March and 30 June should be paid in full on or before 31 March 2021.

Tax Credits Renewal

HMRC will automatically renew all tax credits claims this year, apart from claims it believes are high risk. This means that the majority of claims renewals require no input from taxpayers. The trouble is that in many cases the information HMRC is using appears to be incorrect.

HMRC says that it sent around one million tax credits renewal packs (TC603R) which excluded some or all of the income information.

The error will affect you if you have self-employed income, receive taxable social security benefits or other income, e.g. dividends or other investment income.

It potentially affects future payments.

To make sure your tax credits are correct you must review your total household income for the 2019/20 tax year and check it against HMRC’s figures.

If you’re self-employed and haven’t yet submitted your tax return for last year (2019/20), provide HMRC with an estimate of your profit or loss by 31 July 2020.

The simplest and quickest way to report any changes needed to HMRC’s figures is to complete the tax credits renewal form online or by using its webchat service.

https://www.tax.service.gov.uk/ask-hmrc/webchat/tax-credits-enquiries

https://www.gov.uk/manage-your-tax-credits

Flexible Furlough

From 1 July 2020 you can furlough staff on a flexible basis but you can still permanently furlough them.

However, you may only furlough an employee after 1 July 2020 (either on a flexible or permanent basis) if they were furloughed prior to 10 June 2020.

Webinars Re Government Support.

 Extension to the Coronavirus Job Retention Scheme and flexible furloughing: This webinar will take you through the changes, flexible furloughing, claim periods and key dates.

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.