This month the insider covers:
Reaching international markets in 2021 and beyond.
The UK has left the EU, and for British exporters, that presents both opportunity and uncertainty.
While the new trade agreement places no tariffs or quotas on goods traded between the UK and EU from 1 January 2021, it may come with additional costs and bureaucracy as the UK is no longer part of the single market and customs union.
There's potential for businesses to branch out to new markets outside of the EU, but that comes with a new set of rules and procedures to navigate now that the transition period has come to an end.
The effects on supply chains from 1 March 2021.
Those working in the UK's construction industry will have to handle and pay VAT differently from 1 March 2021, unless there's another last-minute Government U-turn.
This is when the VAT domestic reverse charge for building and construction services, to use its full name, will finally take effect at the third time of asking. In this article, we'll refer to it simply as the 'reverse charge'.
This month the insider covers:
Planning ahead to boost your business's resilience.
During what would normally be the busiest period of the year for businesses in retail, hospitality and other sectors, many will now be keeping a close eye on their cashflow as they deal with the impacts of COVID-19.
While Government-backed schemes like furlough, grants and loans will provide some much-needed support, there could be additional disruption to contend with as the UK reaches the end of its transition period with the EU and new rules take effect from 1 January 2021.
Reporting and paying capital gains tax within 30 days.
Earlier this year, a new rule requiring capital gains tax on UK residential property to be reported and paid to HMRC within 30 days kicked in.
This ushered in another change to tax rules affecting residential property owners, which seeks to raise more tax from the disposal of additional homes and to collect this tax quicker.
For many of the 1.2 million disposals of residential property in the UK each year, there will be no capital gains tax liability due to private residence relief.
This month the insider covers:
Entrepreneurs' relief is no more (in name at least).
Last March, one of the headline-grabbing measures announced in what will be the only Budget speech of 2020 surrounded what we knew as entrepreneurs' relief.
The relief was designed to be an incentive for entrepreneurs to start a new business by reducing the amount of capital gains tax payable when the time came to dispose of (or sell) certain business assets, where conditions are met.
But in reality, the Government clocked onto the fact that less than one in ten entrepreneurs admitted this carrot was tasty enough to entice them to start a new business.
The pros and cons of changing your main residence.
With property being one of the most reliable investments around in a period of historic low-interest, many money-savvy people these days end up owning additional properties.
They might rent them out, live in them or simply sit on them to sell on when the time is right.
Whatever your reason for owning multiple residential properties, it's important to think hard about which you define as your main home for legal and tax purposes.
This month the insider covers:
A property tax shake-up fuels a house buying surge.
If you are considering moving home in the second half of 2020/21, you are by no means alone.
In the month leading up to 8 August 2020, 149,000 properties were put on the market – the highest number since before the financial crash in 2008.
This might be attributed to the pent-up demand caused by the lockdown, as well as owners falling out of love with their home after being confined to it for so many months.
Life after mortgage interest relief for landlords.
Historically, landlords have enjoyed generous income and capital gains tax reliefs which helped make residential property an attractive investment for those looking to add to their monthly incomes or provide for retirement. But over the years the Treasury has eroded these reliefs, both income and capital.
You might remember mortgage interest relief at source, which encouraged home ownership by offering tax relief for interest payments on a mortgage.
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.