Hello

This week we have Budget 2021 coverage. The freeview guides provide all the essential information, with more detailed guidance for subscribers. As usual we will be drilling down into more detail and bringing out some CPD in the coming weeks.

I was half-hoping that the Chancellor would produce some Brexit-inspired new measures and incentives in his Budget as it's always quite a lot of fun to write about new measures. Unfortunately, we only have freeports, this time. Initially, I thought that they sounded quite exciting - I had visions of eight mini-Monacos dotted around the country - however our tax team soon dispelled that fantasy; the ports are more likely to be just ports, smelly, with a lot of shipping containers and spilt diesel.

With negotiations still in progress with the EU, the main issue for the Chancellor is getting the nation back on its feet after coronavirus, and the Budget certainly did some things to assist in that. The government is also due to produce some new consultation documents along with the new draft of Finance Bill 2021 in a couple of weeks. Maybe there is more to come, and whatever happened to the plans for the Digital Services Tax?

With no freeport located close me, the other key Budget measures that caught my eye and imagination are the new loss reliefs. These allow a three-year carry back for both Corporation Tax and Income Tax, which is very useful. On Corporation Tax, the increase in the rate to 25% was pretty much as we expected, although this will not apply for several years. Before then there may well be more tax rises, as it is going to take a very long time to repay the £407 billion cost of the government's coronavirus support. 

Good news for some of the new small businesses who were unable to claim under the Self-employment Income Support Scheme (SEISS) because they were new start-ups; it might be possible to claim for the fourth and fifth grant. 

If you have any queries do post them on our Virtual Tax Partner advice service at www.VtaxP.co.uk scroll down for more news and updates.

Back soon 

Nichola Ross Martin FCA CTA (Fellow)
Tax Director

www.rossmartin.co.uk

Your Virtual Tax Partner® online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.

Quick News

Annual statistics for charity tax relief
HMRC have published 'UK charity tax statistics commentary: April 1990 to April 2020'. The statistics release is the annual update of reliefs claimed by charities and individuals following a charitable donation.

Budget 2021 (freeview)

Budget 2021
Our Budget 2021 zone covering key budget announcements together with items published without announcement. Individual tax articles with links to our guides.

Budget 2021: COVID-19 measures
A guide to COVID-19 measures included in Budget 2021.

Budget 2021: Corporation Tax
The Chancellor has announced a number of measures that will affect those who pay UK Corporation Tax in the 2021 Budget. 

Budget 2021: Land & Property
Land and Property measures including Stamp Duty Land Tax (SDLT),  Annual Tax on Enveloped Dwellings (ATED) and Business Rates included in Budget 2021.

Editor's Pick (subscribers)

Budget 2021: Subscriber guide
A summary key budget announcements together with items published without announcement.

Budget 2021: Off-Payroll Working
The Budget 2021 announced technical changes to the Off-Payroll Working rules due to come into force on 6 April 2021 for the private sector.

Budget 2021: Company losses
In Budget 2021 the Chancellor announced a new three-year carryback for company trading losses.

Guides and Updates (subscribers)

Gifts to Charity
Gifts to Charity: can you obtain tax relief on a gift to your local charity or community amateur sports club? What about gifts to your church, mosque, synagogue? Do you need to be a taxpayer?

Social Investment Tax Relief
Social Investment Tax Relief (SITR) is an Income Tax and Capital Gains Tax (CGT) investment scheme relief.

IR35: Off-Payroll Working
What is IR35? How does it work? How is the deemed payment calculated? What expenses are deductible? 

Penalties: Late Payment
What penalties are charged when tax is paid late? A guide for Subscribers.

Tax Cases

Court of Appeal confirms CASC not a charity for VAT
In Eynsham Cricket Club v HMRC [2021] EWCA Civ 225, the Court of Appeal confirmed that a Community Amateur Sports Club (CASC) is not the same as a charity for VAT purposes.

Cricket Club had a reasonable excuse for incorrect zero-rating certificate
In Westow Cricket Club v HMRC [2021] UT 0023, the Upper Tribunal (UT) overturned the decision of the First Tier Tribunal (FTT), finding that the Club did have a reasonable excuse for issuing a zero-rating certificate.

Licence agreement was amortisable intangible asset 
In Roger Preston Group Limited v HMRC [2021] TC08025, the First Tier Tribunal (FTT) upheld the appellant's appeal to have the amortisation of its intangible asset allowed for Corporation Tax purposes.

Virtual Tax Partner Toolkits (freeview)

Virtual Tax Partner © Tax Toolkit© Tax Toolkits
Be a winner with our game-changing Business Asset Disposal Relief tax diagnostics tools. Sign up now.

Tax Queries?

Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a very wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more. 

CPD for lunch 

Byte-sized chunks of CPD for subscribers

More at CPD Index

Missed last time's Web-update?

Nichola's SME Update 25 February 2021

  • Self Assessment late payment penalties delayed
  • Advisory fuel rates from 1 March 2021
  • Phishing email: 'Your Self-employed Grant for March 2021 has been Approved'
  • HMRC publish SEISS 3 statistics
  • COVID-19: VAT payments
  • Uber's drivers are not self-employed
  • BBC presenter not an IR35 employee
  • Ancillary supply not separate for VAT
  • CPD: CIS Reverse Charge VAT
  • Reorganisations Zone
  • VtaxP Toolkits
  • Off-Payroll Working: PSCs & Private Sector Engagers
  • MTD: Toolkit for accountants
  • Disposal values & rules
  • Capital Goods Scheme ...More

 

SME Tax Monthly Summary February 2021

Links to all of February's newswires...More 

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