Anna’s Accountancy Alerts – Week 17 (27th July – 2nd August 2020)

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VAT Payments

VAT payments due after 30 June must be paid on time or HMRC may apply surcharges.

VAT which has been deferred must be paid by 31 March 2021.

If you need more time for any VAT payments you can ask HMRC for a time to pay arrangement.

Making Tax Digital

The UK Government has extended its Making Tax Digital programme to the UK’s smallest companies to April 2022.

VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax digital rules for their first return starting on or after April 2022.

However, VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to follow the Making Tax Digital rules by keeping digital records and using software to submit their VAT returns.

Summer Statement – The Tax Measures

The Chancellor announced some short-term measures to stimulate business and house buying.

VAT And Hospitality.

If you eat out during August you will be able to reclaim 50%

Restaurants, cafes, hotels and visitor attractions will be able to charge a reduced rate of VAT, 5% instead of 20%. It will be up to businesses whether they pass on the VAT reduction to customers or keep their prices the same and so more directly benefit from the VAT cut.

The reduced rate will apply from Wednesday 15 July until 12 January 2021 inclusive.

Stamp Duty Land Tax (SDLT)

The standard nil rate threshold for SDLT on residential property transactions will be increased from £125,000 to £500,000.

This took effect for sales completing on 8 July and will apply to sales completing on or before 31 March 2021.

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.