Insights – January 2021
January has been another very challenging month for all of us. With a new lockdown in place, and many businesses continuing to be very disrupted by Covid-19, the excitement and opportunities which a new year usually brings have been difficult for many to embrace.
We wish to draw your attention to several important upcoming deadlines, available supports and tax changes:
1.Deadline for third SEISS claim
The deadline for the third claim under the Self Employment Income Support Scheme is this Friday 29th January 2021. Remember to keep detailed records to demonstrate you have experienced a significant reduction in trading profits. A fourth SEISS tranche has been announced but further details on this next claim are still awaited.
2.Limited company director support scheme
This recently announced scheme is unique to Northern Ireland and offers company directors a one-off grant of £3,500. The scheme closes for applications at 6pm on Thursday 18 February 2021. The eligibility criteria is quite tight and not every director is eligible. Our advice is to work through the eligibility criteria and apply if you can.
3.Bed and Breakfast, Guest House and Guest Accommodation Scheme
This scheme, operated by Tourism NI, opens for applications this Thursday 28 January 2021. The scheme offers grants of up to £12,500 for qualifying providers.
4.Self-assessment tax return deadline – moved out one month
At the eleventh hour, HMRC announced this week that taxpayers who file their tax return by 28 February 2021 will not be hit with a late filing penalty (£100). We strongly recommend that you get your return filed as close as possible to the original deadline.
5.Self-assessment tax payments – payment plans available
The tax filing deadline has been moved out a month – but you are still due to make any payments that are due by 31 January 2021. This includes payments on account that were deferred from 31 July last year. The good news is that HMRC is offering taxpayers time to pay, so you can spread out your payments over a period of up to 12 months. And if you wish to pay by instalments and your payment due is below £30,000, you can arrange the payment online using HMRC’s self-serve function. Contact us if you need help to set up your payment plan.
6.Deferred VAT Liabilities
VAT liabilities deferred between 20 March and 30 June 2020 will now fall due for payment by 31 March 2021. You can however opt in to a “VAT deferral new payment scheme” whereby you will be able to pay the deferred VAT in smaller monthly instalments. You will be able to choose how many months you want to pay the deferred VAT liability over. Be advised that this liability will need to be discharged in full by 31 March 2022, so the maximum number of monthly instalments will be 11.
7.Budget 2021
Just a quick reminder that this year’s budget is scheduled for 3rd March 2021. There has been much speculation that the Chancellor of the Exchequer would use this budget announcement to make tax changes to help claw back some of the costs associated with Covid-19 supports. But as the pandemic continues to take its toll across the UK, the speculation most recently is that the budget could be light touch and may be more support focussed than about new tax takes… we’ll wait and see.
8.IR35
Last March, the UK government announced that new rules for off-payroll workers (referred to as IR35) would be deferred by 12 months. If your business or you personally are likely to be affected by the IR35 changes, get in touch and we can help you work out the implications.
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.
Take care and keep safe.
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 January 28, 2021
