HLAS

HMRC is warning organisations about the use of mini umbrella companies in the labour supply chain and the need to carry out due diligence to protect the organisation from financial and reputational damage. Without a careful review of their labour supply chain the end user could find themselves liable for tax, national insurance and VAT avoided by entities inserted in the labour supply chain between them as end user and the workers engaged via the umbrella structure. This was highlighted in a recent BBC programme which identified 48,000 umbrella companies set up to exploit the £4,000 employment allowance. These companies [...]

The Office for National Statistics (ONS) have published their latest figures on the economy showing that: Monthly gross domestic product (GDP) grew by 2.1% in March 2021, but remained 5.9% below its level in February 2020, which was the most recent month not affected by the coronavirus (COVID-19) pandemic. The rise in GDP was led by a month-on-month rise of 1.9% in services in March 2021, but this sector remained 7.2% below its February 2020 level; the monthly rise in services was led by the education sector (contributing 0.54 percentage points of the growth). Monthly production grew by 1.8% between [...]

From 17 May government advice is we should continue to work from home if we can and below we summarise the new relaxed lockdown rules: Gathering limits will be eased. Outdoor gatherings will be limited to 30 people and indoor gatherings will be limited to 6 people or 2 households (each household can include a support bubble, if eligible). New guidance on meeting friends and family will emphasise personal responsibility rather than government rules. Instead of instructing you to stay 2m apart from anyone you don’t live with, you will be encouraged to exercise caution and consider the guidance on risks associated [...]

More than 36 million people in the UK have been vaccinated with 1 dose and 20 million have received 2 doses. The country’s most vulnerable are to be offered their second COVID-19 vaccine earlier, the government has announced, as part of plans to tackle rising cases of the B1.617.2 variant of concern first identified in India. Appointments for a second dose of a vaccine will be brought forward from 12 to 8 weeks for the remaining people in the top 9 priority groups who have yet to receive their second dose. This is to ensure people across the UK have [...]

How to claim Gift Aid as a charity As a smaller charity, it’s worth noting that you can easily introduce Gift Aid and begin claiming extra income for your cause, just as large high-street charities do. Read on to find out what Gift Aid is, how it works, and what you need to do to get started. What is Gift Aid? Most charity shop frequenters are aware of Gift Aid since each eligible item comes with a price tag brandishing the words `Gift Aid Donation`. Introduced by the Finance Act in 1990, Gift Aid is a UK tax incentive that [...]

The Government have announced a one-year exemption from paying employers national insurance contributions (NICs) where military veterans are recruited by civilian employers. Employers can claim relief if they employ a veteran during the qualifying period. The qualifying period starts on the first day of the veteran’s first civilian job since leaving the regular armed forces and ends 12 months later. For 2021/22 employers will be required to pay the NICs and then claim back the amounts paid at the end of the tax year. From 6 April 2022 a new zero NIC rate will apply.

A 25% rate of corporation tax will apply to all of a company’s profits if they exceed £250,000 from 1 April 2023. The 19% rate will continue to apply where profits are below £50,000. The marginal rate that applies between those limits will be 26.5%. Those upper and lower limits are divided by the number of “associated companies” in the accounting period. This is not merely companies in the same 51% group but also includes companies under common control, for example where the same individual controls two standalone companies. So, if Fred controls Bloggs Trading Ltd and also Bloggs Lettings [...]

Currently only VAT registered businesses making taxable supplies in excess of the £85,000 VAT registration threshold are mandated to comply with Making Tax Digital (MTD) rules. Those rules require the business to keep digital business records and send VAT returns using MTD-compatible software. MTD for VAT is now being rolled out to all VAT registered businesses from April 2022 which may cause some traders who are VAT registered but below the threshold to consider deregistering to avoid having to comply with MTD for VAT. If you decide to do so you will need to complete Form VAT7 and account for [...]