VAT for Covid Testing
HMRC has recently issued guidance which provides much anticipated clarification on the covid testing services and their liability to VAT. Further details can be found below.
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HMRC Advisory Fuel Rates Updated
The latest advisory fuel rates (AFR) for company car users have been published by HMRC. These are effective from 1 September 2021 and mileage rates have increased by 1p or more for all petrol and diesel vehicles.
Non-Resident Landlord Scheme
The ‘Non-Resident Landlord Scheme’ (NRLS) is a scheme for taxing the UK rental income of non-resident landlords. Under the scheme basic rate tax (20%) is deducted from the net rent collected by an agent (less expenses paid). There is an exception to this where an agent/tenant has authority from HMRC to pay the landlord gross.
Property Business Expense on Cessation
Where a property business ceases there is a relief for expenses incurred in relation to the business after it has ceased. The business typically would cease where the property is no longer let or is sold.
SEISS 5th Grant & Turnover Test
The SEISS is the main source of government funding for self-employed individuals who have been affected by the Covid-19 pandemic. Thus far, four SEISS grants have been made and the 5th grant is expected to open later this month with a claim deadline of 30th September 2021.
Beneficial loans
From April 2021 HMRC’s Official Interest rate has been cut from 2.5% to 2%. As a result of the cut the tax payable by a higher rate taxpayer with an employer-provided interest-free loan will reduce. This is also the case for director loans taken from companies. Where an employer-provided loan is cheap rather than interest-free, the…
Avoid child benefit clawback
Couples who receive child benefit are in danger of having some of that benefit clawed back as a tax charge if the higher earner has annual income of over £50,000. When the higher earner has income exceeding £60,000 all of the family’s child benefit is clawed back.
Tax credit renewals
All tax credit claimants should have received their renewal pack by 4 June 2021. If you have not received your renewal pack you should contact HMRC on 0345 300 3900.