VAT REVERSE CHARGE FOR BUILDING AND CONSTRUCTION SERVICES
This is a major change to the way VAT is collected in the building and construction industry.
It comes into effect on 1 March 2021 and means the customer receiving the service will have to pay the VAT due to HMRC instead of paying the supplier.
For more information: https://www.gov.uk/guidance/vat-domestic-reverse-charge-for-building-and-construction-services
MAJOR CHANGE TO CAPITAL GAINS TAX
From 6 April 2020, if you’re a UK resident and sell a residential property in the UK you’ll have 30 days to tell HMRC and pay any Capital Gains Tax owed.
If you don’t tell HMRC about any Capital Gains Tax within 30 days of completion, you may be sent a penalty as well as having to pay interest on what you owe - so it’s really important that everyone involved in the sale of a residential property fully understands these changes.
For more information: https://www.gov.uk/government/news/get-ready-for-changes-to-capital-gains-tax-payment-for-uk-property-sales
WORKPLACE PENSION - minimum contribution rates – 3% for employers and 5% for employees.
MINIMUM WAGE – NEW RATE FROM APRIL 2020
These rates are for the National Living Wage and the National Minimum Wage. The rates change every April.
25 and over £8.72
21 to 24 £8.20
18 to 20 £6.45
Under 18 £4.55
MTD – MAKING TAX DIGITAL – HMRC are working on a completely new system whereby businesses report their profits quarterly, rather than annually. These reports have to be submitted online via compliant software. HMRC will not be providing this software.
April 2019 – VAT Registered businesses with turnover over £85,000 will report quarterly for VAT purposes only.
April 2023 – All self employed businesses and people renting out property with income of over £10,000 have to start reporting quarterly.
For more information: https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital
The Government has launched a new ‘support finder’ tool which will help businesses and self-employed people across the UK to quickly and easily determine what financial support is available to them.Read More
Latest guidance to employers and businesses about COVID 19.Read More
Latest on the Workplace Pension and Minimum Wage as well as updates regarding Making Tax Digital. Also important updates on VAT and Capital Gains Tax.
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