RZ Associates Limited - September 2021 Newsletter

In the September 2021 issue we look at MTD, corporation tax losses and the VAT rate change in the hospitality sector.

Making Tax Digital for Income Tax

The next stage for HM Treasury’s Making Tax Digital (MTD) in Income Tax.
• Digital record keeping and we are advising clients to look at this now;
• Submission of quarterly reports to HMRC directly from software – due a month of the quarter end; and
• Change to tax year basis where the business does not already have a 31 March or 5 April year end

Carry Back of Corporation Tax Losses

Losses arising between 1 April 2020 and 31 March 2022 can be carried back 3 years instead of the normal 1 year. We look at how to claim the loss relief.

Changes to VAT in the Hospitality Sector

A reminder that VAT in the hospitality sector will increase from 5% to 12.5% from 1 October through to 31 March 2022.


RZ Associates Limited - June 2021 Newsletter

In June 2021 we look at:

Warning – Mini Umbrella Companies
We look at advice being given to companies to set up a number of mini-umbrella companies to obtain multiple employment allowances that would save NIC on £4,000 each time. Where you use umbrella companies ensure that your supply chain is compliant.

HMRC will now impose penalties for non-compliance with MTD for VAT. From 1 April 2022 all businesses will be required to submit VAT returns using MTD.

CGT on Sales of Residential Property
A reminder that capital gains tax on disposals of residential property has to be reported and any tax paid within 30 days.


RZ Associates Limited - March 2021 Newsletter

This quarter we take a look at the following.

4th SEISS Grant & Furlough Extension
The newsletter also looks at the fourth SEISS grant for the self-employed that can be claimed from late April. HMRC are seeking additional evidence before they will authorise grant payments and remember the claim window is short.

Off-payroll Working (IR35)
Medium and large-sized businesses are responsible for determining the status of contractors from 6 April 2021. This was postponed from last year due to covid-19.

SDLT Surcharge for Non-residents
From 1 April 2021 non-residents purchasing residential property will be subject to an additional 2% SDLT. This will be in addition to the 3% surcharge for the purchase of second homes.

VAT Domestic Reverse Charge for Building and Construction
The VAT DRC came into effect on 1 March 2021.

VAT Deferred in 2020 – Pay by instalments
If you deferred the VAT due between 20 March 2020 and 30 June 2020 you can pay arrange an instalment plan to pay this back to HMRC by 31 January 2022. More details in the newsletter.


RZ Associates Limited - Budget 2021 Newsletter

Last week the Chancellor unveiled his 2021 Budget which included some new tax increases and introduced tax reliefs. Here is our Budget newsletter in which we have looked at some of the points that may be of interest to you.

Some of the headline points from the Budget:

• Income tax, CGT and NI rates are unchanged
• Personal allowance and higher rate threshold will be frozen from 2021-22 through to 2025-26
• The main rate of corporation tax will increase to 25% from April 2023 but this will create different bands of corporation tax
o Up to £50,000 – 19%
o Between £50,001 and £250,000 – 26.5%
o Over £250,000 – 25%
o These profit thresholds have to be divided by the number of associated companies
• Losses can be carried back 3 years instead of 12 months
• SDLT holiday on £500,000 extended to 30 June 2021 and a further extension to 30 September 2021 at £250,000
• Furlough extended until 30 September but employers need to contribute more from July
• SEISS grants 4 & 5 will be payable and, for the first time, be available to those who started their businesses in 2019-20 as long as they had filed a 2019-20
tax return by midnight on 2 March 2021
• A points based system to be introduced for late VAT or income tax MTD returns from April 2022

Should you wish to discuss anything in the newsletter, the Budget or any other matter please do not hesitate to contact us.


RZ Associates Limited - December 2020 Newsletter

In this newsletter we examine the third SEISS grant and the extension of the furlough scheme.

Also, a reminder that CGT on residential property disposals have to be reported and paid within 30 days.

We also look at the deferral of tax payments due in January 2021. This may be particularly relevant where you you took advantage of the opportunity to defer your second payment on account in July which will shortly become due.


RZ Associates Limited - September 2020 Newsletter

This month we look at the Coca-cola tax case and consider whether a van is actually a van or is it a car? For benefit in kind purposes it may be a car. Speak to us before purchasing a new van.

We also look at the second SEISS (Self-employment Income Support Scheme) grant. It can be claimed after 17 August 2020 and details are on page 2.

Losses, particularly corporate losses, can only be offset against profits of the same trade. But what if your business has switched to something completely different? Speak to our team if you think you may have an issue.

This newsletter also looks at the cut in VAT to 5% for the hospitality sector from 15 July 2020 to 12 January 2021.

Want a £1,000 bonus? Well, the Chancellor has promised to pay a job retention bonus of £1,000 per employee to employers who have been on furlough and included in a coronavirus job retention scheme ("CJRS"). Full details of the scheme are still to be published but please read the section on page 4 of this newsletter for more details.


RZ Associates Limited - June 2020 Newsletter


• Self-employed Income Support Scheme (SEISS) grants are reviewed in this newsletter.
• We also look at the business rates grants for small businesses and businesses in the hospitaility and retail sectors.
• Businesses are also able to recover SSP (Statutory Sick Pay) for employees who are unable to work because they had Covid-19 symptoms or self-isolated becuase someone in their household had shown symptoms.
• The changes to the IR35 rules, off-payroll working, have been delayed by 12 months to 6 April 2021, due to Covid-19.
• We also consider working from home expenses and, in particular, having to do so to revent the spread of Covid-19.


RZ Associates Limited - Spring Budget 2020 Newsletter

We take a look at some of the changes included in the Budget.

• Increase in the employment allowance for NIC to £4,000
• Entrepreneur’s Relief (“ER”) will be capped at £1m of capital gains on or after 11 March 2020
• The pension threshold for adjusted net income will increase to £240,000 and the threshold income limit will increase to £200,000 from 6 April 2020
• Relief from business rates for small retail businesses with a rateable value of less than £51,000 for 2020-21


RZ Associates Limited - February 2020 Newsletter

From 6 April 2020 capital gains tax (CGT) will be reportable and payable within 30 days of the completion date where there is a tax liability.

The off-payroll working, commonly known as IR35, rule changes that applied to public sector workers 2 years ago will be rolled out to the private sector from 6 April 2020.

If you received loans in place of your salary and did not repay the loans in full by 5 April 2019 you may be liable to PAYE and NIC as if it was salary on 5 April 2019. An independent review of the loan charge last year has resulted in changes so that loans taken out before 9 December 2010 and loans taken out between 10 December 2009 and 5 April 2016 where the loan scheme was fully disclosed to HMRC on tax returns but HMRC failed to act the loan charge will no longer be due. Please contact Neil Hutton if you would like to discuss your options.


RZ Associates Limited - Winter 2019 Newsletter

Here we take a look at benefits in kind for cars and digital links for Making Tax Digital ("MTD"). We also discuss Entrepreneur's Relief ("ER") for capital gains tax ("CGT") and where it may not apply.


RZ Associates Limited - Autumn 2019 Newsletter

In this quarter's newsletter we take a look at a several topical issues such as the trading allowance that covers sundry trading income up to £1,000.

Would your employees like an occassional treat? Of course they would, so read the Trivial Benefits section on page 2 and see if this could be applied.

We also look forward to the delayed implementation of the VAT reverse charge in the construction industry from 1 October 2020. If you are VAT registered and you are a builder, or othewise covered by the construction industry scheme ("CIS") then the article on page 3 will be of interest to you.

Companies are able to claim cash from HMRC for research and development ("R&D") projects by claiming an enhanced deduciton of up to 230% of the qualifying costs. Call our team if you would like to discuss your options in more detail.


RZ Associates Limited - Summer 2019 Newsletter

This summer we look at employee travel expenses, paying the correct NIC and changes to IR35. We also look at winding up a company. Please call to discuss any issues you may have with our team.


RZ Associates Limited - Spring 2019 Newsletter

This quarter we look at Employee Benefits under OpRA (Optional Remuneration Arrangements), the 14 day deadline for SDLT returns and payments and the new VAT reverse charge for building firms from 1 October 2019. We also mention the structures and buildings allowances and the loan charge for those individuals who received loans in place of part of their pay in the past.


RZ Associates - Autumn Budget Newsletter 2018

The Budget contained important changes to Entrepreneur's Relief including the increase in the qualifying period to 2 years from 6 April 2019 and also cut the final period of CGT exemption for main residences from 18 months to 9 months from April 2020. The personal allowance increased to £12,500 and the 40% band will start at £50,000 from April 2019, a year earlier than previously announced.The IR35 roll out to the private sector will not happen until 2020. Any last hopes we had that Making Tax Digital for VAT will be delayed have been dashed, it still goes ahead from April 2019.


RZ Associates Limited - Autumn 2018 Newsletter

We examine Making Tax Digital for VAT which starts for in April 2019 and income tax calculations sent out by HMRC.

The newsletter also discusses Contractor loans and what needs to be done before 30 SEPTEMBER 2018 if you have loans.

Any taxpayer with overseas assets, such as a holiday or home or foreign bank account, needs to inform HMRC before 30 SEPTEMBER 2018, otherwise higher penalties of up to 200% could be levied.

We also look at the good and bad points of electric company cars and employee owned electric cars.


RZ Associates Limited - Summer 2018 Newsletter

This quarter we look at changes to childcare support, IR35, when SMP is due, changes to the rules for termination payments and Making Tax Digital (MTD) for VAT.


RZ Associates Limited - Spring 2018 Newsletter

We look at paying children from your business, the National Minimum Wage and directors and Scottish income tax rates.

Please pass these on to anyone who may benefit from them.


RZ Associates Limited - Winter 2017 Newsletter

The winter newsletter looks at HMRC's new simple assessments, NIC for the self employed and the new property allowance. We also highlight MTD for VAT coming in April 2019.

Please feel free to pass these on to anyone who you feel may benefit from them.


RZ Associates Limited - Autumn Budget Newsletter 2017

The Autumn Budget 2017 Newsletter contains some useful information on the Budget.

Please feel free to pass these on to anyone who you feel may benefit from them.


RZ Associates Limited - Autumn 2017 Newsletter

The Autumn 2017 newsletter examines what we can expect from the next Finance Bill and when these changes will take effect. We also review the latest on Making Tax Digital as well as the errors that may occur in 2016-17 income tax returns and problems with HMRC's coding notices and P800's. The newsletter also examines some myths about letting.

As always pass this newsletter to anyone who may find it useful and if you would like to discuss any of the issues in the newsletter or any other matter please contact us.


RZ Associates Limited - Summer 2017 Newsletter

The Summer 2017 newsletter contains useful updates on MTD and items dropped from the Budget due to the General Election. Should you have any questions regarding anything contained in the newsletter or any other tax or accounting matter please contact us.

Please feel free to pass these on to anyone who you feel may benefit from them.


RZ Associates Limited - 2017 Spring Budget Newsletter

The Spring Budget 2017 Newsletter contains some useful information on the Budget.

Please feel free to pass these on to anyone who you feel may benefit from them.

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