Hospitality VAT rates increase
The hospitality and tourist sectors have been supported through the Covid-19 pandemic by being able to pay a reduced amount of VAT to HMRC in respect of most sales.
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Post Brexit VAT rules for invoicing overseas clients
There has been an added twist on VAT rules for invoicing overseas clients post-Brexit. Business to business (B2B) supplies of professional services, such as those of an accountant were and continue to be treated as being supplied where the recipient belongs, in line with the place of supply of services general rule; a different treatment…
Changes for self-employed tax returns
Making tax digital for income tax self assessment (MTD ITSA) will replace the self assessment tax return for unincorporated businesses from April 2024 for sole traders and from April 2025 for most partnerships. The MTD ITSA regulations will require you to keep records of your business transactions in a digital format and use those records…
Delays to income tax repayments
The UK tax system is under attack from fraudsters who attempt to register numerous people for self assessment then submit false repayment claims.
Incentives for research and development
Research and development (R&D) tax reliefs can be very generous for small companies, giving a deduction of 230% of qualifying costs. However the categories of expenditure which qualify for R&D relief were defined over 20 years ago and do not include costs of a typical internet based business.
VAT changes for hospitality sector
The hospitality and tourism sector has been enjoying a reduced rate of VAT (5%) since 15 July 2020. This rate applies to most supplies made by hotels, tourist attractions, members’ clubs and most events venues. It also applies to the food and drink served in those premises and hot takeaway food and non-alcoholic drinks.
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…
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.