Alis Accountants

5% RATE ON TOURISM AND HOSPITALITY ENDS 30 SEPTEMBER
On Posted on31st August 2021 by Louise Denvir to COVID-19, News, Tax
The temporary 5% VAT rate that has applied to supplies made in the tourism and hospitality sector since the start of the pandemic comes to an end at the end of September. The rate then increases to 12.5% from 1 October until 31 March 2022 when it reverts to the standard rate.

For those businesses operating in this sector this will mean an amendment to their accounting software and possibly prices. Note that the 20% rate continues to apply to the sales of alcohol.

Where deposits and other payments are taken before 30 September 2021 the 5% rate would apply to that supply as that would be the tax point for the supply.

Some key points from today's Budget

The threshold for paying the basic rate of income tax will rise to £12,570 next year. The higher rate threshold will be £50,270. Both rates will remain the same until 2026.

The rate of corporation tax will increase in April 2023 to 25%. For taxable profits over £250,00 it will be 25%, less than 50,000 it will be 19% and tapered between the two.

The 5% reduced VAT rate will be extended for six months to end of September, followed by an interim rate of 12.5% for a further six months.

Further grants have been announced for hospitality, retail and leisure businesses amounting to another £5bn.

The Furlough scheme will continue until September. After July businesses will be asked for a 10% contribution, raising to 20% in August and September.

Self employed support will also continue until September with the government helping those whose turnover has fallen by 30%. The universal credit uplift will also continue until September.

With more of us working from home there is good news from HMRC that employees can make a claim for tax relief to cover some of their costs while they are working from home. .

Deal or no deal, there are rules coming into effect on 1 January for the end or Transition.
Call us for more details. .

MORE TIME TO PAY TAX

On Posted on12th November 2020 by Louise Denvir to News

Those taxpayers who may have difficulty paying the tax due under self-assessment on 31 January 2021 can agree more time to pay with HMRC provided the amount outstanding is no more than £30,000.

The government have already agreed that amounts due under self-assessment on 31 July 2020 could be deferred until 31 January 2021 but this latest announcement generally allows a further 12 months to pay.

You can either set up a payment plan online by logging into your HMRC online personal tax account or call the HMRC Payment Support Service