Anna’s Accountancy Alerts – Week 5 (4th May 2020)

Business

iSpeech

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 inbox.btcnevaterrorcorrection@hmrc.gov.uk.

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.

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.