Weekly tax highlights ― 1 February 2021

Produced by Tolley
Weekly tax highlights ― 1 February 2021

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Weekly tax highlights ― 1 February 2021
  • Scottish budget
  • Scottish Budget delivered in Scottish Parliament
  • Brexit
  • HMRC guidance
  • Direct taxes
  • 31 January Self-Assessment deadline and filing penalties
  • Treasury Direction under Section 71 and 76 of the Coronavirus Act 2020
  • Coronavirus job retention scheme (CJRS) update on employee's usual hours and furloughed hours
  • The Pension Schemes (Qualifying Recognised Overseas Pension Schemes) (Gibraltar) (Exclusion of Overseas Transfer Charge) Regulations 2021, SI 2021/89
  • More...

In the ever-fast-moving world of tax announcements and developments, this note pulls together some of the key changes announced this week. Our commentary will be updated in due course to reflect these latest developments.

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Scottish budget

Scottish Budget delivered in Scottish Parliament

The Scottish budget was intended to provide 'certainty and stability' for income tax payers, with Scottish taxpayers set to pay slightly less income tax in 2021–22 than in 2020–21, although the measures taken in response to the coronavirus (COVID-19) will mean that Scotland's GDP is not expected to recover to pre-pandemic levels until the start of 2024, with unemployment also expected to rise and remain higher than pre-pandemic levels until 2025. The budget was labelled as 'an unprecedented response' to investing in both the immediate resilience and longer-term recovery of Scottish businesses.

For further details, see here.

Brexit

HMRC guidance

Following the end of the Brexit transition / implementation period at 11 pm on 31 December 2020 (IP completion day), the government has been reissuing a number of Brexit webpages and guidance documents, collating existing stakeholder and sectoral guidance on legal and practical changes taking effect from 1 January 2021. These include:

  1. Employer Bulletin: UK Transition Special Edition-Brexit transition guidance from HMRC

  2. Agent Update: special edition dealing with Brexit highlighting the new rules for trading with Europe, business travellers, cash declarations and social security coordination

  3. Excise Notice 197a (excise goods ― holding and movement)

  4. Excise Notice 75 (Fuels for use in vehicles)

Direct taxes

31 January Self-Assessment deadline and filing penalties

Further to the announcement made on 25 January that there would be no

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