12th February 2021 – Hillmans Weekly Update

 

Below I have summarised all the main tax related updates we have seen this week.

• Possible Inheritance Tax Changes
• Will CGT Rates Go Up?
• What to do if you’re employed and cannot work – guidance for employees
• VAT on purchases from the EU

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a good weekend.

Stay safe and well.

Cheers,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100

22nd January 2021 – Hillmans Weekly Update

22nd January 2021 – Hillmans Weekly Update

Below I have summarised all the main tax related updates we have seen this week.

• Guide to VAT reverse charge for construction services
• Making Tax Digital for Income Tax
• Advisory Fuel Rate For Company Cars
• Data Sharing
• Selling services to the EU

If you have any queries about this week’s content, or if you need any assistance please do not hesitate to contact me.

I hope you have a good weekend.

Stay safe and well.

Kind regards,

Steve

Steven Hillman BSc (Hons) ACA
Chartered Accountant
Tel: 01934 444100
https://www.hillmans.co.uk/covid-19-updates 

Selling services to the EU

Selling services to the EU, Switzerland, Norway, Iceland and Liechtenstein

The UK-EU Trade and Cooperation Agreement ensures that UK firms in a variety of service sectors can continue to access the EU market, including as business travellers and cross-border services suppliers or investors, while being treated no less favourably than either EU businesses or competitors from third countries.

While the Agreement sets out expectations of the treatment and level of access to each Party’s domestic market, there will still be some changes for business as a result of no longer operating under European Economic Area (EEA) regulation covering cross-border trade in services. These changes are different for each sector and differ in each member state of the EU.

For Government guidance for UK businesses on rules for selling services see: https://www.gov.uk/guidance/providing-services-to-any-country-in-the-eu-iceland-liechtenstein-norway-or-switzerland-after-eu-exit

There are country guides and information for UK businesses providing services and travelling for business to countries in the EEA and Switzerland: https://www.gov.uk/government/collections/providing-services-to-eea-and-efta-countries-after-eu-exit

Exporting to EU - Getting an EORI Number

From January 2021 you need an EORI number to move goods between the UK and the EU.

You can apply for your EORI number in advance. It can take up to a week to get one.

You will not usually need an EORI number if you only:
• provide services
• move goods between Northern Ireland and Ireland
• If you use a post or parcel company they will tell you if you need an EORI number.

You will need an EU EORI number if your business will be making customs declarations or getting a customs decision in the EU. Get this from the customs authority in the EU country where you submit your first declaration or request your first decision.

IF YOU ALREADY HAVE AN EORI

From January 2021 you’ll need an EORI number that starts with GB to move goods to or from the UK.

Check your EORI number. Apply for a new one if yours does not start with GB.

BEFORE YOU APPLY

To apply you may need your:
• VAT number and effective date of registration - these are on your VAT registration certificate
• National Insurance number - if you’re an individual or a sole trader
• Unique Taxpayer Reference (UTR)
• Business start date and Standard Industrial Classification (SIC) code - these are in the Companies House register
• Government Gateway user ID and password

If you need a Government Gateway user ID, use either:
• the one for your business or organisation
• your own if you’re applying as an individual

If you do not already have a user ID, you’ll be able to create one when you apply.

To apply for an EORI number see: https://www.gov.uk/eori?step-by-step-nav

Get Ready for Leaving the EU on 1st January 2021

The United Kingdom leaves the European Union at 11pm on 31 December 2020 when the transitional period ends. It is still unclear whether a trade deal will have been agreed with the EU by that date, and such an agreement is looking increasingly unlikely. HMRC have started writing to businesses alerting them to important changes from 1 January 2021 and suggesting that they have new procedures in place if they wish to trade with the EU from that date.

In particular, businesses will need to submit declarations when importing and exporting goods that are categorised as ‘controlled’. Import processes for non-controlled goods will be phased in over a 6 month period. ‘Controlled’ goods include alcohol, explosives and certain drugs.

OBTAIN AN EORI NUMBER

If you have been trading internationally you should already have an Economic Operator Registration and Identification (EORI) number. You will need this to complete customs declarations. If you do not yet have one, you can register for free by going to www.gov.uk/eori

Businesses need to decide how they are going to make customs declarations. Customs agents, freight forwarders and express operators can help with declarations and ensure the business is providing the necessary information.

IMPORTS OF GOODS SUBJECT TO STAGED CONTROLS

Most traders with a good compliance record will be able to defer import declarations on most goods for up to 6 months after 1 January 2021 depending on the nature of the goods.

KEY VAT ISSUES AT THE BORDER

Businesses will need to decide how they will account for import VAT when they make a customs declaration. From 1 January 2021, businesses will be able to use postponed VAT accounting to account for import VAT on their VAT Return for goods imported from anywhere in the world.

They will also need to check if Import VAT is due at the border.  Import VAT will not be due at the border if goods in a consignment do not exceed £135 in value. The only exceptions will be excise goods and gifts.

WHAT TARIFFS APPLY FROM 1 JANUARY?

From 1 January 2021, there will be new rates of Customs Duty for imports - called the UK Global Tariff.

The Tariff rates for transactions with the EU will depend upon whether or not a deal is reached. For example, if there is no deal with the EU the Tariff on motor cars will be 10% so many car dealers are suggesting that business should consider acquiring a new vehicle before 1 January. To check the tariffs that will apply to goods you import, go to www.gov.uk/guidance/uk-tariffs-from-1-january-2021