skip to navigationskip to main content

Call: 01652 650112

Are You Ready For The Bounce Back? The Latest Business Updates This Week

Are you ready for the “Bounce Back”?

All of us must agree that the “Bounce back” in the economy is good news and many of our clients are reporting increased activity as the lockdown eases and economy returns to somewhere near normal over the next few months. Of course there are uncertainties about new virus variants, but all the indicators are pointing to a summer recovery, with the economy being repaired by the end of this year.

Please talk to us about planning for the future, we are here to help drive your business forward!

BREXIT – HMRC Guidance on moving goods between GB and the EU 

HMRC have recently sent letters to VAT-registered businesses in Great Britain trading with the EU, or the EU and the rest of the world.

They explain what businesses need to do to comply with the new rules and processes for moving goods between Great Britain and the EU, including:

  • making sure they have a UK Economic Operator Registration and Identification (EORI) number
  • ensuring they are ready to make customs declarations
  • checking if their goods are eligible for the preferential zero duty rates
  • preparing for the end of staged import controls on 1 January 2022

https://www.gov.uk/government/publications/letters-to-businesses-about-importing-and-exporting-goods-between-great-britain-and-the-eu

Making Tax Digital (MTD) for VAT – end of “soft landing”

MTD for VAT currently applies to VAT registered businesses with taxable turnover in excess of £85,000, the current VAT registration threshold. From 1 April 2022, MTD for VAT is being extended to all VAT registered businesses.

HMRC have updated their guidance in VAT Notice 700/22 regarding MTD for VAT:

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat

This publication is essential reading for all VAT registered business as some of the content has the force of law.

The notice:

  • explains the digital records businesses must keep, and ways to record transactions digitally in certain special circumstances
  • explains what counts as compatible software, and when software programs do and do not need to be digitally linked where a combination of programs is used
  • gives examples of when digital links are required

Section 4 alerts businesses to the end of the “soft landing” period:

HMRC gave a period of time (known as the soft landing period) during the first 2 years of Making Tax Digital, to help businesses put digital links in place between all parts of their functional compatible software. Businesses were not required to have digital links in place until their first VAT Return period, starting on or after 1 April 2021.

During the soft landing period, if a digital link was not established, HMRC accepted the use of ‘cut and paste’ or ‘copy and paste’ as being digital links.

The soft landing period has now ended.

New HMRC Guidance on CJRS Furlough Scheme

On 6 May 2021, HMRC issued further updates on the Coronavirus Job Retention Scheme (CJRS) which employers need to take account of in preparing grant claims from 1 May 2021 onwards. 

For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee.

Details of eligible employees:

https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme

Wage costs:

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Claims procedure:

https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

How much you can claim, including examples:

https://www.gov.uk/guidance/calculate-how-much-you-can-claim-using-the-coronavirus-job-retention-scheme

As usual, please contact us if you need assistance in making a CJRS Furlough claim or you would like us to check earlier claims.

Paying CJRS Grants Back

If you have claimed too much through the Coronavirus Job Retention Scheme, or you would like to make a voluntary repayment because you do not want or need the grant to pay your employees’ wages, tax and National Insurance and pension contributions, you can either:

  • correct it in your next claim (your new claim will be reduced, and you’ll need to keep a record of the adjustment for 6 years)
  • get a payment reference number and pay HMRC back within 30 days (only if you’re not correcting it in your next claim)

https://www.gov.uk/guidance/pay-coronavirus-job-retention-scheme-grants-back

The latest Coronavirus Job Retention Scheme (CJRS) statistics

This latest release provides analysis of claims for periods up to 31 March 2021. The data used includes claims submitted to HMRC by 14 April 2021.

See: Coronavirus Job Retention Scheme statistics: 6 May 2021 – GOV.UK (www.gov.uk)

Sign up for our newsletter