Insights – 2021
“Here comes the Sun”
The superb weather over these past few weeks has been truly uplifting with sunshine, sea-sides and staycations.. not to mention summer classics from The Beatles belting out around late-night beach campfires. It sure does seem “like years since it’s been here”. And with confirmation this week that the NI retail voucher scheme of £100 to all those aged over 18 is to be rolled out in September, the general public mood appears to be improving overall.
Enjoy the rest of the summer and here’s hoping that the tentative forecasts of a late August heatwave come to pass. We’ll take some more!
We bring the following key focus points to your attention this month:
1. Covid-19 VAT deferral – penalties rolled out
Most VAT registered traders will have successfully put in place a payment plan with HMRC by 30 June this year for VAT deferred at the outbreak of the pandemic in Spring 2020. For those who have not complied by the June deadline, a penalty of 5% will be automatically applied. If you need help putting a payment plan in place, or if you have valid reasons for missing the deadline and need help with your appeal, get in touch.
2. SEISS 5 – turnover levels
Over the past two weeks, self-assessed traders have been receiving details on email of the fifth and final SEISS grant, the information HMRC need to consider the claim (including 2020/2021 turnover levels) and the deadline for claiming. Recent subtle changes have been announced on how claims for partners in business partnerships are calculated. Please check your inbox for your notification from HMRC and contact us if you need advice.
3. July 2021 Payments on Account due
Self-assessment taxpayers are due to make their second payment on account to HMRC by the end of July. Despite the disruption and uncertainty brought about by Covid-19, these payments are still due and payable by 31 July 2021. If you need to spread your payments or need to agree a payment plan, contact HMRC or our team as soon as possible.
4. Are your employees working from home outside the UK? Watch out for residency issues.
We have seen an increase in the number of clients with employees working in foreign jurisdictions but continuing to deliver their job role in NI/UK. Employees themselves must take care not to come within the foreign tax regime in their newly adopted country of residence – it comes down to the length of time they spend there (number of days) in any given tax year. In cases where employees become tax resident in another jurisdiction, an employer may have obligations to withhold foreign taxes and remit these to the foreign tax authorities. If the employee is delivering services in the foreign jurisdiction, the employer may also have tax registrations to attend to.
If you have employees in this situation, speak to us for more detailed guidance.
5. Capital Gains Tax on residential sales – 30 day deadline
As property sales continue to surge, we want to remind you of the 30 day deadline to report and pay Capital Gains Tax (CGT) rule which was introduced in April 2020 for disposals of UK residential properties. It is worth remembering that, within 30 days of the completion date, you must take action to report and pay the CGT on these disposals to HMRC in order to avoid late filing penalties. (This excludes sale of your own home which should qualify for Principal Private Residence relief).
6. Invest NI
Invest NI recently released details of its support given to its clients during the pandemic – a reported 400 calls a day came in at one point from clients seeking guidance. We have worked with clients on several Invest NI projects over the past 15 months. Whilst the application and approval process can be resource intensive and time consuming, we have been successful in securing significant capital, training, marketing and business growth funding from the economic development agency for the benefit of our clients. Support of up to 50% for certain salaries and significant levels of support for external consultancy have been available and are already going in to help our clients grow their business into the future. If you would like to arrange a consultation with Gerard Gildernew to find out how Invest NI may be able to help your business, get in touch.
Should you have any queries on any of the above, please do not hesitate to contact us on 028 8772 4697 or at info@gildernewandco.com.
Everyone at Gildernew & Co.
Gildernew & Co. Ltd make every effort to ensure the accuracy of the information herein. However, no reliance should be placed on any of the above without seeking independent professional accountancy, legal and/or financial advice.
Posted on July 30, 2021
