Carpenter Box - Your monthly Tax and Business Updates June 2021
Published: 02 Jul 2021
Changes to the Coronavirus Job Retention Scheme from July
The current level of the Coronavirus Job Retention Scheme (CJRS) grant will be reduced From 1 July 2021. Employers will then be asked to contribute towards the cost of their furloughed employees' wages.
In July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked. This will be to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.
You will need to pay the 10% difference in July, and 20% in August and September. This will allow you to pay any furloughed employees at least 80% of their usual wages for the hours they do not work during this time. It will be capped up at £2,500 per month.
For the hours not worked, you can top up your employees’ wages above the 80% level or cap each month if you wish. However, this will be at your own expense.
Self-employed Income Support Scheme: Fifth grant
A fifth grant covering May 2021 to September 2021 will be open to claims from late July 2021. The grant is taxable and will be paid out in a single instalment.
To work out your eligibility for the fifth grant, HMRC will first look at your 2019 to 2020 Self-Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
The amount of the fifth grant is determined by how much your turnover has been reduced in April 2020 to April 2021. HMRC will provide more information and support by the end of June 2021. This is to help you work out how your turnover was affected.
Changes to VAT from 1 July 2021
Following the end of the Transition Period on 31 December 2020, more fundamental changes are to come to the collection of VAT. These changes come into effect from 1 July 2021. The changes will apply to the sale of both services and goods to EU customers.
Three new schemes have been announced to help facilitate the declaration and payment of VAT:
- Union One-Stop Shop: Allows UK businesses to hold stock within the EU and pay VAT for all EU sales to one Member State.
- Non-Union One-Stop Shop: Covers supplies of services to EU customers by businesses with no establishment within the EU.
- Import One-Stop Shop: Covers the distance sale of goods below €150 from stock held outside the EU.
Making Tax Digital for landlords Webinar
Date: Thursday 22 July 2021
Delivery: Zoom (registration required)
Making Tax Digital for Income Tax launches properly in April 2023 for landlords who make over £10,000 annually. While not compulsory yet, you can start preparing now to ensure your systems are up and running, and you’re used to the new process well before the 2023 deadline.
Join our webinar to find out more about the upcoming changes.
Capital allowance claims: a new office for the new normal
The UK’s COVID-19 vaccination programme is progressing rapidly and there has been a reduction in lockdown restrictions. Many businesses could therefore see an increase in the number of employees attending office premises over the next few months.
Preparation for a return to the workplace will no doubt have a financial impact on many businesses. This includes upgrading equipment and making offices a safer and more flexible working environment.
From 1 April 2021 until 31 March 2023, there are two new reliefs available to companies who qualify with expenditure on plant and machinery assets:
- A 130% super-deduction capital allowance qualifying plant and machinery
- A 50% first-year allowance (FYA) for special rate assets
This means that companies will be able to save up to 25p of tax for every £1 invested.
The top 3 benefits of providing your tax return information early
It may feel like it was only yesterday since you finalised your self-assessment tax return for the 2019/20 tax year.
However, it is never too early to start planning now on how best to organise your 2021 tax return. Here we take a look at the benefits of supplying this information early and why it pays to get ahead.
The three key potential benefits of doing this include:
- Tax planning
- Making time for you
What tax relief is available to make your business more sustainable?
For businesses, ‘going green’ can make not only environmental sense, but financial sense as well.
If you’re looking for ways to monitor and improve your business’ carbon footprint, but don’t know where to start, these resources can help you start your journey:
- Clean Growth UK is an innovation network working to connect climate-conscious businesses with the resources they need to innovate and grow.
- SME Climate HUB aims to remove the obstacles SMEs face as they take climate action, whether curbing emissions in their own business or getting green solutions to market
- Carbon Trust is a partner for businesses and organisations around the world. Supporting them in realising plans for a sustainable, low carbon future.
- Greater South East Energy Hub works with public sector organisations and their stakeholders to support the development of local energy projects.
The Marriage Allowance explained
Under Government guidelines, small weddings have been allowed since 12th April with larger ceremonies and receptions resuming from 21st June (subject to venue capacity).
This means there will be a backlog of rescheduled nuptials taking place. So it’s a good time to look into the Marriage Allowance and it’s benefits.
Millions of married couples and civil partners in the UK are eligible for the Marriage Allowance. But take-up has remained subdued since the tax break came into force on 6 April 2015. Many couples are either unaware of the tax break or simply forget to claim it.
More than four million married couples and 15,000 civil partners could claim a tax break worth up to £252 in 2021/22. but how do you go about it?
We’re raising a glass for English Wine Week!
We’re very proud to be celebrating and supporting English Wine Week once again this year.
The event is organised annually by Wines of Great Britain (Wine GB). This year, English Wine Week has been moved to coincide with the Summer solstice – kicking off the start of Summer in style!
English Wine Week provides a great opportunity for individuals and businesses to enjoy the wonderful taste of English wine. Why not visit one of your local vineyards and enter into the spirit of the event? We are very lucky to have some incredible local vineyards right in the heart of Sussex. You may already be a fan of some of them without even knowing!
Proud to support Safe in Sussex
Last week Carpenter Box staff dug deep into their wardrobes and their pockets! All in aid of raising money and awareness for the Safe in Sussex “Shocking Shirts and Funky Frocks” Day.
Safe in Sussex is a registered charity in West Sussex. It provides refuge, help and support for people affected by domestic abuse. They have 4 refuges which include a children’s support service and they run various facilitated groups in the community.
Staff members wore their most outrageous outfits, funky frocks and shocking shirts. We held a virtual fashion parade on our company intranet. Votes were taken and a small prize awarded to the most liked outfit of the day.
Carpenter Box Financial Advisers news update
Read the June newsletter!
June. The month that marks the beginning of summer. This year it is a month that has been more highly anticipated than in recent memory, as with it comes the cautious return to relative normality.
This newsletter covers:
- Recent financial movements within the UK, including industry updates and the state of the economy
- European news
- A global overview: the US, Far East and Emerging Markets
- Solicitors Update Series: Property and land tax (14 July 2021)
- Making Tax Digital for Landlords (22 July 2021)
- Changes to VAT from 1 July 2021
- Spring 2021 Newsletter
- Budget Summary
- Tax Rates 2021-22
- Financial Update June newsletter
- IR35 Fact Sheet
- Domestic Reverse Charge
- Brexit Deal
- Electric car tax considerations
- The Momentum of Electric Vehicles
01 July 2021
- Stamp Duty Land Tax Nil Rate Band to be reduced to £250,000.
- New EU VAT rules come into effect (see above).
- CJRS grants will cover 70% of employees’ usual wages for the hours not worked and employers will need to pay the 10% difference (see above).
- New 66% business rates relief system starts for eligible retail, hospitality and leisure properties.
06 July 2021
- Copies of 2020/21 P11d documents should be issued to employees and forms submitted to HMRC.
07 July 2021
- VAT returns and payments due for Accounting Quarter period ending 31 May.
14 July 2021
- Last day to make CJRS claims for June.
- Deadline for electronic remittance of PAYE, NICs and CIS to HMRC, as well as Class 1A NIC owed on expenses or benefits.
- Last date to amend a CJRS claim for June where it has been underclaimed.
- Deadline for filing of accounts with Companies House for accounting periods ended 31 October 2020.
- Mortgage and consumer credit holidays to end.
- The second payment on account for the 2020/21 tax year is due.