The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The Government announced on 24 September 2020 that it will give businesses, which deferred VAT due in March to June 2020, the option to spread their payments over the financial year 2021/2022. Rather than paying in full at the end of March 2021, businesses will be able to choose to make 11 equal instalments over 2021/22. All businesses that took advantage of the VAT deferral can use the New Payment Scheme. Businesses will need to opt in, but all are eligible. HMRC will put in place an opt-in process in early 2021 and further details will be provided when it is published.
Many businesses experienced a rapid and unexpected decrease in their revenue streams as a result of the coronavirus (COVID-19) outbreak, and consequently suffered cash flow problems that impacted their ability to pay any VAT due. In light of this, the Chancellor announced a delay in the requirement to make VAT payments that fell due between 20 March 2020 and 30 June 2020. Businesses that do not elect to take advantage to the ‘new payment scheme’ mentioned above have been given until 31 March 2021 to pay any liabilities accumulated in this period; they can opt to pay the VAT due at the usual time if they pref
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‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
Summary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions over 50g/km but not more than 110g/km (to be reduced to 50g/km and below from April 2021)18%CAA
Business asset disposal relief (previously known as entrepreneurs’ relief) is a capital gains tax (CGT) relief that allows business owners with chargeable gains on qualifying business assets to pay CGT at a rate of 10%. For disposals made on or after 11 March 2020, the relief is available on up to
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