Brace for more change
- The UK is now treated as a third country in relation to the EU, which means the VAT rules on imports and exports have changed for all goods (of any value) crossing the EU border and into Northern Ireland.
- Sales of digital services to non-business customers in the EU must now be reported under the non-EU VAT MOSS scheme, which requires UK businesses to register for VAT in an EU country. There may also be industry-specific conditions for selling goods and services from the UK into the EU, so don’t assume that everything for your business will operate as before.
- Coronavirus restrictions are also in place across the UK, affecting your cashflow, suppliers and customers. If you need to claim under a Government support scheme for furloughed staff wages (CJRS) or for self-employed profits (SEISS), pay attention to the monthly and quarterly deadlines.
- VAT within the construction industry is set to change on 1 March 2021, so if you operate in that sector you need to prepare for this now, see full article for more detail.
- The Autumn 2020 Budget was cancelled, so we expect some very significant economic and tax changes in the Spring Budget Statement on 3 March 2021. For example, the Government recently commissioned a review of Capital Gains Tax, which recommended streamlining reliefs and increasing the tax rates. These changes could take effect from Budget day, or from the start of the next tax year on 6 April 2021, if implemented.
We recommend you undertake an annual review of your financial affairs to check that you are not paying more tax than you need to and whether the structures you set up in the past are still appropriate. Between now and the end of the tax year (5 April 2021) is a good time to assess whether you have claimed all the relevant allowances and are as well defended against high tax charges as you can be.
The personal circumstances of each individual must be taken into account in deciding whether any particular plan is suitable or advantageous – but these suggestions may give you some ideas. We are happy to discuss them with you in more detail.
If you wish to discuss any of the items within the article further, or simply for a sane voice to talk through growing your business to the next level, feel free to call us.