Adaptax Accountancy and Tax

Crypto tax: Do I need to worry?

The FCA’s latest estimate puts the number of cryptocurrency holders in the UK at 2.3m, a figure that’s rising rapidly. With the self-assessment deadline fast approaching.

HMRC view on Cryptoassets

Given the trade volumes now seen in the UK, it’s understandable that HMRC is taking a more active interest in cryptocurrency. While no taxes apply specifically to cryptocurrency assets in the UK, the tax department has clarified that in the majority of circumstances, anyone holding them as a personal investment is subject to capital gains tax on their crypto profits.
Using its existing information-gathering powers, HMRC gathers information from a number of crypto exchanges and in November letters reminding those who have traded cryptoassets to consider capital gains tax.

If your business moves goods between the UK and countries in the EU, they’ll need to follow new customs and tax rules.

Businesses will be affected by the new rules if they:
• buy goods from an EU seller and bring them into the UK
• send goods they’ve sold to a buyer in an EU country
• haven’t exchanged money but need to move equipment they use for their business, between the UK and the EU.

Your business can now apply for the SME Brexit Support Fund. Smaller businesses can get up to £2,000 to pay for practical support, including training or professional advice to adjust to new customs, rules of origin and VAT rules when trading with the EU. Applications must be received before 30 June.

A construction business affected by the new reverse charge rules for VAT, which was brought in on 01/03/2021 please come and speak to us.

In summary the subcontractor no longer charges VAT but must state on their invoice that contractor must deal with the VAT by applying the reverse charge.

It is the contractor who must pay the VAT to HMRC.
The reverse charge only applies when there is an element of labour on the invoice (not just materials) so subcontractors must show the split between labour.

The reverse charge will then apply to the entire invoice value.

The Government has launched a ‘support finder’ tool to help businesses and self-employed people to determine what financial support is available.

If you need further help please contact us.

Find coronavirus financial support for your business Coronavirus (COVID-19) support is available to employers and the self-employed. You may be eligible for loans, tax relief and cash grants.

This is the message we have just received from HMRC

The Chancellor announced a VAT payments deferral on 20 March to support businesses with cashflow during the COVID-19 pandemic.
This means that all businesses with a UK VAT registration have the option to defer VAT payments due between 20 March and 30 June. Businesses have until 31 March 2021 to pay any VAT deferred as a result of this announcement.
Businesses do not need to inform HMRC if they wish to defer payment. They can opt in to the deferral simply by not making VAT payments due in this period.
Businesses who normally pay by direct debit should cancel their direct debit with their bank if they are unable to pay. This can be done online if they’re registered for online banking. They should do so in sufficient time so that HMRC does not attempt to automatically collect on receipt of their VAT return.
Should they wish, businesses can continue to make payments as normal during the deferral period. HMRC will also continue to pay repayment claims as normal. Businesses must continue to submit VAT returns as normal.
For more information please go to GOV.UK and search “Deferral of VAT payment”.

Anyone looking to see what financial help could be available to them and their businesses should refer to this website as their first point of reference. Best wishes to everyone.

Business Support | Coronavirus Financial Support This page helps businesses find out how to access the support that has been made available, who is eligible, when the schemes open and how to apply.

The repayment break for residential mortgages,has been extended to all buy-to-let mortgages, as well as on Help to Buy equity loans.

Contact your lender for further information.

The Government launched the Coronavirus Business Interruption Loan Scheme this Monday to help businesses struggling under the current COVID-19 pandemic, via the British Business Bank.
This loan is not intended for organisations who were already struggling prior to the pandemic but for organisations who are in difficulties due to COVID-19
The Government will guarantee the lender (usually a bank) 80% of the loan amount
But the loanee will still be liable for 100% of the loan
To be eligible you must have a turnover less than £45 million and be a viable business (not in difficulties prior to the pandemic)
For loans up to £250,000 no security is needed
The first 12 months the loan is interest free, however capital repayments will start after 30 days of receipt of the loan.
The decision to grant the loan is still the decision of the lender, see the link for the list of accredited lenders

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/

Coronavirus Business Interruption Loan Scheme (CBILS) - British Business Bank

Deferring VAT payments

Help from HMRC with VAT involves deferring payments for 3 months. This will apply for the period 20 March 2020 until 30 June 2020. All businesses will be given until the end of the 2020 to 2021 tax year to pay any outstanding tax that has been incurred during the deferral period.

HMRC they have not suggested delaying submission of your VAT returns. Because relief is automatic our advice is to continue to file your VAT return by the due date.