Weekly tax highlights ― 1 June 2021

Produced by Tolley
Weekly tax highlights ― 1 June 2021

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

  • Weekly tax highlights ― 1 June 2021
  • Finance Bill
  • Finance Bill passes Report Stage
  • Coronavirus (COVID-19)
  • HMRC guidance: CJRS updates
  • Direct tax
  • Company cars: advisory fuel rates from 1 June 2021
  • The Taxation of Chargeable Gains (Gilt-edged Securities) Order 2021, SI 2021/629
  • Indirect tax
  • VAT treatment of public funds received by further education institutions
  • More...

Weekly tax highlights ― 1 June 2021

Finance Bill

Finance Bill passes Report Stage

The Finance Bill was passed by the House of Commons at Report Stage on Monday 24 May. All government amendments were approved, including the new Schedule ‘VAT and distance selling: Northern Ireland’ which has been inserted into the Bill as Sch 18.

The final version of the Bill (the ‘Lords Bill’) was published at the end of 25 May and will be considered by the Lords on Tuesday, 8 June. As the Lords do not have the power to amend a ‘Money Bill’, this stage is a formality with no further changes (other than minor typographical corrections) being made.

Royal Assent to Finance Act 2021 is expected before both Houses of Parliament begin their summer recess on 23 July 2021 ― although it could possibly be earlier than usual, given the speed at which the Bill has completed its Parliamentary stages. It is worth noting that HMRC’s Agent Update issue 84 (May 2021) hinted at a ‘mid-July’ Royal Assent date, in its coverage of claims for extended loss carry-back which cannot be made until the Act receives Royal Assent.

Coronavirus (COVID-19)

HMRC guidance: CJRS updates

HMRC has updated its Coronavirus Job Retention Scheme (CJRS) guidance as follows:

  1. new sections on how employers can correct overclaims in a subsequent CJRS claim ― this provides a step by step guide for employers on how to enter the correct claim and overclaim amounts in their claim forms

  2. new templates to use if employers are putting 16 to 99 employees on furlough (previously there was only a template for 100 employees or more). Employers will need to upload this file for each employee in order make their claims

Direct tax

Company cars: advisory fuel rates from 1 June 2021

HMRC has published revised advisory fuel rates for company cars which apply from 1 June 2021. The rates are to be used only where employers either reimburse employees for bu

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