Wrongful Trading Rules Relaxed
From 1 March to 31 May 2020 your company won’t automatically be classed as “trading wrongfully” if it can’t meet its liabilities. However, debtors still take preference over shareholders so pay bills before dividends.
HMRC Makes VAT Error Correction Easier
If you need to correct a VAT return, instead of writing you can, until further notice, send details of the correction required to HMRC using firstname.lastname@example.org.
Tax Enquiries On Hold
Businesses and individuals subject to tax enquiries are being given more time to respond to HMRC’s requests for information. It’s a good idea to respond asap to its original request for information as interest will continue to accrue on any extra tax you owe.
Benefits And Tax Credits Update
Benefits And Tax Credits Uprating
The basic element of Working Tax Credit has been increased by £1,045 to £3,040 from 6 April 2020 until 5 April 2021.
The amount a claimant or household will benefit from will depend on their circumstances, including their level of household income.
The government is also uprating Child Benefit, other tax credits rates and thresholds, and Guardian’s Allowance by 1.7% with effect from 6 April 2020.
You don’t have to take any action and you will receive any increased payments automatically.
Tax Credit Renewal
This year, HMRC will automatically renew all tax credits claims apart from those identified as high risk.