Anna’s Accountancy Alerts – Week 40 (4th – 10th January 2021)

Anna Goodwin Accountancy

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Deadline For Tax Credits

In response to COVID-19, HMRC didn’t stop payments or end awards on 31 July, however self-employed businesses still needed to tell HMRC their estimated income by 31 July 2020.

Actual income needs to be reported to HMRC by 31 January 2021.

To help work out your correct income for tax credits purposes, go to GOV.UK and search for ‘Tax Credits: Income working sheet’ (TC825).

You must provide your net profit figure(s) from your tax return for year ending 2019-2020, by 31 January 2021 to the Tax Credit Office.

If an estimate has previously been reported for other income (for example: dividends, investment income, interest, pension, property/rental, foreign, and notional income) you also need to tell HMRC these actual income figures, by 31 January.

You can inform HMRC of your actual income by using your Personal Tax Account at the same time as completing your Self-Assessment tax return or, by calling the helpline on 0345 300 3900.

If an estimate of income was not provided by 31 July 2020, you should report your actual income, inform HMRC by calling the helpline on 0345 300 3900.

In most cases, HMRC will amend the information on the tax credits records and update your award to make sure you get the right money.

VAT Deferral

Businesses who deferred VAT due from 20 March to 30 June 2020 will now have the option to pay in smaller payments over a longer period.

Instead of paying the full amount by the end of March 2021, you can make smaller payments up to the end of March 2022, interest-free.

You will need to opt into the scheme, and if you do, this means that your deferred VAT liabilities do not need to be paid by the end of March 2021.

The VAT deferral new payment scheme will require a direct debit to be set up as part of the digital opt-in process and this must be done by the authorised bank account holder only.

Pay VAT deferred due to coronavirus (COVID-19) – GOV.UK (www.gov.uk)

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.