MHA Carpenter Box - August Tax & Business Updates
Published: 01 Sep 2020
The latest issue of Real Estate Matters is now available
COVID-19 continues to impact the national and international economy, with major implications for construction and real estate businesses across the UK.
Earlier in the Summer, Chancellor Rishi Sunak announced further measures to support the economy in his Economic Update, with a number of initiatives designed to boost the construction sector.
This issue contains articles on:
- Economic Update
- Green Homes Grant and VAT
- Success with long-term contracts
- Determining compensation for land
- Property pensions
- Latest construction news
Introducing the MHA Trustee Hub
Our national hub of downloadable templates and resources for charity trustees is now live!
There is a plethora of guidance for trustees, but for busy individuals it is difficult and time-consuming to access this knowledge effectively, and to implement good practices.
The MHA Trustee Hub aims to overcome this hurdle by being a one-stop location for practical guidance that is easy to obtain and to adopt. Over the coming months we will be continually updating the Hub with a range of guidance, templates, checklists and model documents. Together these will provide charities with the fundamental framework for governance that all charities need.
Top tips for pubs and restaurants dealing with the temporary reduction in VAT
The temporary reduction in VAT for hospitality is a welcome move, but beware of the details.
The changes in the VAT rate should prove an incentive for customers to spend, whilst helping hospitality businesses through a very difficult time as we emerge from the most stringent lockdown measures.
However, as with all Government incentive schemes, the devil is in the detail. Incorrect implementation could lead to increased fees to put the errors right. Or where errors are not corrected, penalties and interest could be levied by HMRC.
We offer 8 top tips for getting the implementation right.
COVID-19 results in early corporation tax repayment opportunity
HMRC has changed its guidance to provide early relief for companies who have suffered losses as a result of the Coronavirus.
The announcement has come about as a result of lobbying from the Chartered Institute of Taxation and other professional organisations. As a result of this change, a company can receive a repayment of corporation paid in respect of its last filed accounting period or, if it is a large company, it can claim a repayment of quarterly instalment payments made – even if that accounting period has not finished.
Making a claim
The rules allow a company that was previously profitable to carry losses back from a loss-making year to the previous year. Before the change in the guidance, HMRC required a final return to be submitted for the loss-making period before approving the claim to carry back losses. Therefore, companies would’ve needed to wait for the accounts to be approved before they can make a claim, suffering a significant cash flow disadvantage.
Where a corporation tax return for the loss-making year has not been submitted, companies wishing to make an early claim to loss relief can write to HMRC to receive their agreement that an early claim can be made.
What has been the impact on financial reporting for professional practices due to COVID-19?
The Covid pandemic has raised huge operational challenges as well as some unexpected opportunities. However one of the less talked about issues has been the impact of the pandemic on Financial Reporting.
Firms are now at the point at which they need to consider this in some considerable detail. There are several new issues to focus on and decisions to be made in preparing year-end accounts.
We have set out the key areas for consideration below (based on UK GAAP – FRS 102 framework):
- Members’ report / Directors’ report
- Going concern
- Exceptional items
- Furlough income and other grants
- Impact of your year-end date
- WIP and debtors
- CBILS loans
- Profit allocation in LLPs
HMRC extends deadline for Customs Training Grants
Businesses who will become involved in completing customs declarations, carrying out customs processes such as importing and exporting and/or helping other businesses with import and export processes can apply for grants now, with HMRC funding up to £1,500 per employee that undertakes the training.
The three HMRC grants available are:
- Training Grant
- IT Improvements Grant
- Recruitment Grant
On 12th June 2020 further funding of £50m was announced. Be aware that applications will close on 31 August 2021, or earlier if funding is fully allocated.
Our MHA Manufacturing and Engineering mini survey is now open!
The MHA Manufacturing & Engineering specialist team works closely together to ensure our clients in the sector are supported during these challenging times.
We are running a Manufacturing & Engineering temperature check survey which will enable us to put together a nationwide snapshot of the sector as it stands now.
Take part in the survey now!
This mini-survey focuses on the impact of COVID-19 on the sector and will give us a greater understanding of how firms are responding to industry changes.
Taking no longer than 1 minute of your time to complete, the survey will remain anonymous and be used to compile benchmark data for a national Report. This information will be vital to us so that we can understand the sector’s main challenges and define how best to support the industry through this difficult period.
5 simple tips to protect your business against fraud
In these uncertain times, businesses are combatting an increased amount of fraud.
The Financial Cost of Fraud 2019 report published by the Centre for Counter Fraud Studies at the University of Portsmouth suggested that fraud costs UK businesses £130 billion each year.
Throughout recent months, there have been widespread reports of an uptick in fraudulent websites, charity scams and fake emails purporting to be from banks. This increase in fraudulent activity is being driven by opportunists who are attempting to take advantage of the confusion and change of circumstances resulting from the current global pandemic.
We've provided some tips to protect your business against the costly effects of fraud.
Virtual Experience Week videos: careers in finance
Some of our team recently spoke to Shoreham Academy as part of their Virtual Experience Week about their respective careers at MHA Carpenter Box.
During the Summer holidays, many young people may be wondering what they need to do now to get on the first step on the career ladder. Usually, students would’ve undertaken work experience in their last term at school in order to understand what it is like to work in a particular field.
With that not being possible this year, Shoreham Academy instead held a Virtual Experience week where they spoke to local businesses, across a spectrum of industries, to give students an insight into a range of career options.
Careers in finance
For those considering a career in finance, these four video interviews from our staff provide a useful overview of the variety of roles available within an accountancy firm.
Watch to find out from each of our interviewees about:
- A typical day at work
- The qualifications and skills they would recommend
- What they enjoy about their role
Sustainable Investing Webinar
Date: Tuesday 22 September
The COVID-19 pandemic has significantly impacted financial markets, along with global supply and demand.
Through this we have continued to see an increase in popularity of Sustainable Investing, now often referred to as Environmental Social Governance based investing, or ESG for short.
Our webinar aims to help you understand what ESG investing is, why it is becoming more popular, how it impacts the world we live in and in turn, how this can create quality investment returns.
If you’re unable to watch the webinar live, still sign up and we will send through a recording after the event.
MHA Carpenter Box Financial Advisers news update
We are now eight months into a year that has been like no other. While social distancing measures will be around for a while longer, it finally seems as if a new normal is emerging.
We find ourselves feeling much freer than we have for a long time and able to do many of the things we sorely missed during lockdown. Although many events that mark August in Britain – like the Edinburgh Fringe Festival – aren’t going ahead this year, we are now able to get fully into the swing of summer time.
This month's newsletter covers:
- Recent financial movements within the UK, including industry updates and the state of the economy
- Brexit and European news
- A global overview: the US, Far East and Emerging Markets
- Sustainable Investing Webinar – 22nd September
- MHA Legal Sector COVID-19 Survey Report
- MHA Real Estate Matters – Issue 16
- MHA The Engine – Issue 7
- Not for Profit Update – August 2020
- MHA Academy Advisor – Summer 2020
- Customs Training Grant
- Financial projections and funding support for your business
- Tax Rates 2020-21
- Financial Update August newsletter
For a full listing of our resources and information sheets, visit our resources page on the MHA Carpenter Box website.
31 Aug 2020
- Company accounts filing deadline
Filing deadline at Companies House of accounts for private companies with a year ended 30 November 2019 and for public companies with a year ended 28 February 2020.
- Corporation tax return
Filing deadline for corporation tax return self-assessment form CT600 for period ended 31 August 2019 to be submitted to HMRC.
01 Sep 2020
- Corporation tax payment
Corporation tax payment due for year end 30 November 2019, for those companies not liable to pay their liability by instalments.
07 Sep 2020
- VAT return
Due date for July VAT returns unless exempted.
14 Sep 2020
- EC sales list
Deadline for paper monthly or quarterly return filing.
19 Sep 2020
- CIS return
Construction Industry Scheme: monthly return due for period up to 5th of previous month.
- Monthly postal PAYE/class 1 NICs/student loan payment
If you pay by cheque through the post, monthly payments due for PAYE, class 1 NICs and student loan deductions from August 2020.
21 Sep 2020
- EC sales list
Deadline for online monthly or quarterly return filing.
Due date for payment of supplementary declarations for August 2020.
22 August 2020
- Monthly electronic PAYE/class 1 NICs/student loan payment
If paying electronically, pay PAYE, class 1 NICs, student loan deductions and deductions from payments to subcontractors for the month up to the 5th of this month.
30 Sep 2020
- Company accounts filing deadline
Filing deadline at Companies House of accounts for private companies with a year ended 31 December 2019 and for public companies with a year ended 31 March 2020.
- Corporation tax return
Filing deadline for corporation tax return self-assessment form CT600 for period ended 30 September 2019 to be submitted to HMRC.
End of CT61 quarterly period.