29th October 2021 – Hillmans Weekly Update

29th October 2021 – Hillmans Weekly Update:

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

• Autumn Budget and Spending Review
• Coronavirus: Film and TV Production Restart Scheme
• Working Tax Credit customers must report changes to working hours
• Working in Europe?
• Tell HMRC about an option to tax land and buildings

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 great weekend.

Stay safe and well.

Cheers,

Steve

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

Autumn Budget and Spending Review

The Chancellor of the Exchequer presented his Autumn Budget and Spending Review to Parliament on Wednesday 27 October 2021. 

We have summarised the key points from the budget below:

• National Living Wage increases to £9.50 from April 2022
• Dividend tax increases from the 2022/23 tax year by 1.25%
• Capital gains tax reporting period has increased from 30 days to 60 days as well as the payment. This comes into effect from the 27th October 2021
• Employees and Employers NI increases by 1.25%
• Personal allowance frozen until April 2026 at £12,570
• Corporation tax increasing to 25% from April 2023 for profits over £250K, then a sliding scale, profits below £50K will remain at 19%
• MTD has been delayed until April 2024 for sole-traders and landlords with income over £10K

Coronavirus: Film and TV Production Restart Scheme

The Film and TV Production Restart Scheme makes direct compensation available to eligible pre-existing and new productions that incur costs caused by coronavirus-related losses, such as abandonment or filming delays from illnesses amongst the cast and crew.

Eligible productions will receive compensation for costs caused by coronavirus delays up to a value of 20 per cent of the production budget, with the abandonment of productions due to coronavirus to be covered up to 70 per cent of the production budget. There will be a total cap of £5 million on claims per production.

The funding is available to all productions made by companies where at least half of the production budget is spent in the UK.

You must make an application via the appointed third party administrator, Marsh Commercial.

You can download the claim form from their website. Once complete, email your form along with all supporting documentation to mailto: restartschemeclaims@marshcommercial.co.uk.

Future claims made under the scheme can be backdated to 28 July 2020.

The registration deadline for this scheme is 23:59 GMT on 30 April 2022, and claims will be able to be submitted up to 23:59 GMT on 30 September 2022 for losses incurred up until 23:59 GMT on 30 June 2022.

See: Film & TV Production Restart Scheme - Scheme Rules - GOV.UK (https://www.gov.uk/government/publications/film-tv-production-restart-scheme/film-tv-production-restart-scheme-draft-rules)

Working Tax Credit customers must report changes to working hours

HMRC is urging Working Tax Credit customers to check if they need to update their working hours if these have reduced as a result of coronavirus.

During the pandemic, Working Tax Credit customers have not needed to tell HMRC about temporary short-term reductions in their working hours as a result of coronavirus - for example if they were working fewer hours or were furloughed.

If a Working Tax Credit customer’s hours temporarily fell because of coronavirus, they have been treated as if they were working their normal hours.

Customers do not need to tell HMRC if they re-establish their normal working hours before 25 November 2021, but from then, they must do within the usual one-month window if they are not back to working their normal hours shown in their Working Tax Credit claim.

See: Working Tax Credit customers must report changes to working hours - GOV.UK (https://www.gov.uk/government/news/working-tax-credit-customers-must-report-changes-to-working-hours)

Working in Europe?

As travel returns to a more normal environment, the UK government has started a campaign to remind business travellers of the rules for travel to an EU country, Switzerland, Norway, Iceland or Liechtenstein.

As well as the actions all travellers need to take, there are extra actions if you are travelling for business. Business travel includes activities such as:

• travelling for meetings and conferences
• providing services (even with a charity)
• touring for art or music
• taking goods to sell

If you are travelling to an EU country, Switzerland, Norway, Iceland or Liechtenstein for less than 90 days in a 180-day period, you may be able to do some things without getting a visa or work permit, for example going to a business meeting. You may need a visa, work permit or other documentation if you are planning to stay for longer than 90 days in a 180-day period, or if you will be doing any of the following:

• transferring from the UK branch of a company to a branch in a different country (‘intra-corporate transfer’), even for a short period of time
• carrying out contracts to provide a service to a client in another country in which your employer has no presence
• providing services in another country as a self-employed person

Check the entry requirements and rules of the country you are visiting to find out if you need a visa or work permit. 

The government also gives advice on professional qualifications, earning money in the EU, insurance and taking goods and cash into the EU.

See: Visiting the EU, Switzerland, Norway, Iceland or Liechtenstein: Business travel: extra requirements - GOV.UK (https://www.gov.uk/visit-eu-switzerland-norway-iceland-liechtenstein/business-travel-extra-requirements)

Tell HMRC about an option to tax land and buildings

To help businesses during COVID-19 HMRC made a temporary change to the time limit for notifying an option. The change applied to decisions made between 15 February 2020 and 31 July 2021. This temporary change ended on 31 July 2021.

HMRC also allowed options to be signed electronically subject to providing supplementary evidence. This change has now been made permanent.

Check the changes to the time limit and how you notify an option to tax land and buildings (https://www.gov.uk/guidance/changes-to-notifying-an-option-to-tax-land-and-buildings-during-coronavirus-covid-19).

Form VAT1614A has now been updated. You should only complete this form to notify HMRC of your decision to opt to tax land and or buildings.

See:  Tell HMRC about an option to tax land and buildings - GOV.UK (https://www.gov.uk/government/publications/vat-notification-of-an-option-to-tax-land-andor-buildings-vat1614a)

22nd October 2021 – Hillmans Weekly Update

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

• Self-Assessment: Paper submission deadline looming!
• Tax reporting rules for digital platforms
• New Directors’ Disqualification Regime to Directors of Dissolved Companies
• New Tax Checks to Renew Licences for Taxi, Private Hire and Scrap Metal Businesses

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 great weekend.

Stay safe and well.

Cheers,

Steve

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