This month the insider covers:
Why 2019/20 is the year to get it done early.
With everything that's happened so far this year, it might be easy to forget your obligations to file a tax return for 2019/20 by midnight on 31 January 2021.
The coronavirus pandemic and subsequent economic crisis has caused chaos with businesses up and down the country, most of which closed entirely during April 2020.
The Government has introduced several unprecedented measures to help them with the crisis, including deferring some key dates and deadlines involving self-assessment.
Four main methods for valuing a business.
Whether you're making exit plans or you want to give confidence to investors, knowing the value of your business is a vital step.
From the inside, it might be hard to say what that value is. You've put long hours of hard work into building your business from the ground up, but what does that mean to a buyer or investor in monetary terms?
As a starting point, it's important to work out what it is you're actually selling. Is it the business's name, and the reputation that comes with it? Is it the lease on the premises – and is this currently owned by you or by your company?
This month the insider covers:
New measures announced in economic update.
Since the Budget in March, businesses have seen a stream of different support schemes and policies announced to help them manage the financial impacts of the coronavirus lockdown.
When Chancellor Rishi Sunak stood in the House of Commons again on 8 July, it was in the context of the gradual reopening of the economy, with several lockdown restrictions having been lowered on 4 July.
The update wasn't an official Budget speech or fiscal statement, and it only lasted around half an hour, but it contained several measures focused on a "three-point plan for jobs".
Managing and planning during COVID-19.
Even among those who follow good tax-planning practice and maintain forecasts running several years forward, it is unlikely that many foresaw the dramatic end to the 2019/20 tax year.
With the arrival of COVID-19 and the subsequent lockdown, the economy shrank a record 20.4% in April 2020, and 19.1% in the three months to May 2020.
The impact on businesses across the board has been significant and although the economy is reopening slowly, it is clear a return to the 'old normal' is some time away or may never return at all.
It's safe to say Chancellor Rishi Sunak did not expect to be delivering the first official fiscal statement less than four months after his maiden Budget speech back in March, but here we are.
The economic impact of COVID-19 has resulted in the UK's debt-to-GDP ratio breaking the 100% mark for the first time since 1963, while the economy shrank by a monthly record of 20.4% in April.
While Sunak's latest announcement was more of a fiscal plan than an emergency summer budget as some were predicting, and ran for only around 30 minutes, there was more to it in terms of tax than we have seen in many recent spring and autumn statements.
This month the insider covers:
What to expect from tax probes in 2020/21.
After temporarily pausing tax investigations as COVID-19 business support measures rolled out earlier this year, HMRC has restarted probes into businesses and individuals' tax affairs.
The Revenue has also started to direct its attention towards the misuse of coronavirus support schemes, such as the furlough scheme and the self-employed income support scheme.
As of 29 May, HMRC said 1,868 people had reported their employers for fraudulently claiming money through the furlough scheme – more than double the number of reports it had received by 12 May. Since then, reports have passed 3,000.
How to pass on wealth to the next generation.
There are many ways to reduce or eliminate the inheritance tax payable on your estate without using trusts.
But for some, especially if you are very wealthy, they may not be enough. For others, the control that trusts give over who benefits from your wealth, and how, is vital for estate planning.
This month the insider covers:
How termination payments are taxed.
With redundancies on the rise due to the coronavirus, is it time you understood how termination payments work in 2020?
Beyond the human tragedy of COVID-19 is an economic one.
Swathes of the UK economy have been flatlining and a rising redundancy rate is inevitable – even with the Chancellor's furlough scheme in full swing until the end of October.
No employer will implement compulsory redundancy lightly. It's a legal minefield which requires careful planning, difficult conversations and in recent years – thanks to tax changes – it has become more expensive.
How it works and interacts with capital allowances.
The VAT capital goods scheme affects input VAT recovery relating to high-value capital assets. Input VAT is a tax incurred on most purchases made by VAT-registered firms, and they can usually reclaim it from HMRC in full.
The scheme usually applies to partially-exempt businesses and firms with assets that were used for both non-business and business purposes at the time the asset was purchased.
However, the scheme applies to all businesses that acquire such assets where, at some point during the 'adjustment period', the business diversifies into an exempt activity.
The scheme aims to correct the amount of VAT recovered when the use of the asset, between exempt and non-exempt supplies, in later years varies from that in the year of purchase.
This month the insider covers:
Can employees reclaim any expenses?
On Monday 16 March 2020, Prime Minister Boris Johnson told the public to work from home where possible in an attempt to contain the ongoing coronavirus outbreak in the UK.
For more than 1.7 million people it was business as usual, as they already worked from home for their main job, according to the Office for National Statistics' most recent Labour Force Survey published in March 2020.
But for the remaining 30m employees in the UK, lockdown has represented quite the cultural shift. While some have been furloughed for at least three weeks, others have lost their jobs or have childcare commitments, making it nigh on impossible to work from home during the pandemic.
What to consider during the COVID-19 lockdown.
Coronavirus has many people reflecting on their own mortality. So if you have more time on your hands during the lockdown, planning your estate may be a wise way to spend it.
Benjamin Franklin observed there are only two certainties in life: death and taxes, and nothing marries the two together quite like inheritance tax.
It may have a bad reputation, but as we explore below, paying inheritance tax is far from being a certainty in the UK in 2020.
This month the insider covers:
It's hard to believe Rishi Sunak has only been the Chancellor since Valentine’s Day, given what he's had to deal with in a matter of weeks since.
On the back of delivering a Spring Budget, Sunak has revealed an unprecedented multi-billion-pound stimulus package to support businesses in the UK feeling the effects of the coronavirus.
From business continuity to accessing government grants and loans, we're here to advise you during this challenging time. If you need a business health-check or immediate advice on managing cashflow, get in touch.
The following measures are accurate as of 31 March 2020.
What you need to know for the tax year.
The Government left it to the very last minute to announce its tax plans for 2020/21. Fortunately, Chancellor Rishi Sunak had few surprises up his sleeve in last month's Spring Budget.
Three of the main taxes in the UK – income tax, corporation tax and VAT – saw their rates and thresholds frozen or, for income tax thresholds in Scotland, merely tweaked in line with inflation.
However, there were changes to pensions and capital gains tax. Here’s what you need to know from April 2020.
Handy guide showing all the main tax categories for the tax year 2020/21 - includes taxable income bands and tax rates, tax-free mileage allowances, vehicle and fuel benefits in kind, captial gains tax and UK Company taxation information.
"Getting it done" is the soundbite Chancellor Rishi Sunak clearly wanted us to take away from his debut Budget speech, but "giving it away" might be more accurate.
The Government's substantial majority gave Sunak carte blanche to overhaul taxes but, in the end, there were relatively few substantial changes.
Instead, one announcement after another was made on investment in public services, roads and railways. With the coronavirus (COVID-19) high on the agenda, there were also emergency measures designed to provide respite for beleaguered businesses and to protect jobs.
This month the insider covers:
HMRC updates tax guidance for digital currencies.
Since the launch of Bitcoin in 2009, cryptocurrencies have grown steadily into the public consciousness, and the taxman's too. Once the realm of geeks and hackers, cryptocurrencies are becoming more mainstream.
In late 2017, the price of a single Bitcoin surged to about $20,000 before falling away dramatically.
Yes, speculative fortunes have been made and lost, but it continues to pique people's interest. HMRC has taken a growing interest in their use too, and of course their taxation.
Policy success, but headache for employers?
Back in 2012, less than half of private-sector employees in the UK had a pension scheme. Today, that figure is 85% and this huge increase is due to the successful rollout of auto-enrolment.
It started with the largest companies and now applies to employers of all sizes with staff earning more than £10,000 a year, and who are aged between 22 and state pension age.
However, auto-enrolment poses many challenges for smaller employers, as they must comply with the same regulations as listed PLCs, without a large payroll department to manage it.
This month the insider covers: