Charities will often use publications to inform the public about their work and the area in which they operate, and increasingly in an electronic format rather than physical form. Charities will also try to generate extra funds in this way to fund their charitable activities. Since 1 May 2020 the supply of certain e-publications became zero-rated, mirroring the treatment of mo ...
Government urged to act on COVID business support ahead of Budget
The Confederation of British Industry (CBI) has urged the government to provide more financial assistance to businesses affected by the coronavirus (COVID-19) pandemic ahead of the Budget on 3 March 2021. The business group has outlined support measures required to help protect UK businesses through the spring. It has called for: an extension of the Coronavirus Job Retentio ...
Charity News: VAT and digital media
The VAT treatment of advertising expenditure is an area where charities receive special treatment as unlike commercial entities the supply of advertising to a charity is zero-rated, which given that many charities are not registered for VAT themselves and therefore unable to recover input tax, can result in a significant cost saving. The means by which charities conduct their ...
HMRC temporarily waives late payment penalties
HMRC has announced, Self assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by 1 April. The payment deadline for self assessment is 31 January and interest is charged from 1 February on any amounts outstanding. Normally, a 5% late payment penalty is also charged on any unpaid tax that is still outstanding on 3 Mar ...
Calls for rise in the High Income Child Benefit Charge threshold
The Low Incomes Tax Reform Group (LITRG) has urged the government to raise the High Income Child Benefit Charge (HICBC) threshold to avoid it affecting basic-rate taxpayers for the first time in April 2021. The LITRG stated that this goes against the original policy intent, and is 'likely to cause the government additional difficulties in raising awareness about the charge amo ...
VAT deferral new payment scheme – join from 23 February
If businesses deferred paying VAT due in the period from 20 March to 30 June 2020 and can’t afford to pay by 31 March 2021, they can join the VAT deferral new payment scheme and pay their deferred VAT over a longer period. The online service will open on 23 February 2021 and close on 21 June 2021. Businesses can make up to 11 monthly instalments, inte ...
Gift aid and trading subsidiaries during the pandemic
Many charities will currently be in the process of preparing their accounts for the last financial year, and those with trading subsidiaries will be considering how best to manage their tax position. The usual approach for a subsidiary that has generated profits is to donate that profit to its parent charity, either by gift aid or deed of covenant, which if done within 9 months ...
VAT reverse charge on building and construction services
Are you a VAT registered contractor/subcontractor who is providing services under the Construction Industry Scheme? If yes, you must ensure you comply with the new VAT rules coming into force from 1 March 2021. Get ready for the change Before this change comes into effect, please make sure your accounting software is up to date. This will enable you to process and submit VAT ...
Trading changes following Brexit
The United Kingdom officially left the European Union (EU) on 31 January 2020 and the 11-month transitional period ended on 1 January 2021. There are important changes businesses must now make in order to continue trading with the EU. VAT changes The UK left the EU VAT Territory on 31 December 2020. Following this date, Great Britain (England, Wales and Scotland) are not subj ...
Bounce Back Loan repayment terms extended to 10 years
Businesses that took out government-backed Bounce Back Loans to get through Covid-19 will now have greater flexibility to repay their loans, the government has announced Bounce Back Loan borrowers will now have the option to tailor payments according to their individual circumstances with the option to delay all repayments for a further six months. Pay as You Grow (PAYG) will ...