HLAS

The thresholds for employee and employer national insurance contributions (NICs) have been increased by £1 a week for the 2021/22 tax year. Employees will be liable to 12% NICs between £184 and £967 a week (£50,270 a year). Employer contributions will start at £170 a week. The self-employed will pay 9% Class 4 NICs on profits between £9,570 and £50,270. The higher rate tax threshold for 2021/22 will be aligned with the £50,270 NIC upper earnings limit and the personal allowance will be uprated by the same percentage to £12,570 for 2021/22. Note that there are rumours that the chancellor [...]

Your business year end, not 5 April, is relevant for capital allowances purposes. If however you are running a business and making up accounts to 31 March or 5 April you should consider buying plant and machinery to take advantage of the £1 million Annual Investment Allowance (AIA). The AIA provides a 100% tax write off for equipment used in your business. This tax relief extends to fixtures and fittings within business premises such as electrical, water and heating systems. AIA does not apply to motor cars but there is a special 100% tax relief if you buy a new [...]

The new “reverse charge” system of VAT accounting affects sub- contractors supplying their services to main contractors in the construction sector. Under the new rules, supplies of standard or reduced-rated building services between VAT-registered businesses in the supply chain are no longer invoiced in the normal way. Under the new reverse charge system, the sub-contractor does not show VAT on their invoice to the main contractor and does not account for output VAT on that transaction. The new reverse charge applies to activities covered by the construction industry scheme (CIS) payment rules. So if Eddie the Electrician does £10,000 of [...]

For every £2 that your adjusted net income exceeds £100,000 the £12,500 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%. The restriction applies between £100,000 and £125,000 adjusted net income. Another way that you could avoid this trap would be to agree with your employer to sacrifice some of your salary in exchange for a tax-free benefit in kind such as an additional pension contribution.

Where large or medium-sized organisations are paying workers via personal service companies (PSC) or agencies they will need to operate new procedures from 6 April 2021. The new rules will apply to partnerships, LLPs and larger charities as well as limited companies. Only those organisations that would be classed as “small” under the Companies Act criteria will be outside of the new rules. From 6 April 2021 the end user organisation will be required to determine whether or not the worker would be an employee of the organisation if directly engaged. That determination will need to be communicated to the [...]

The guidance on what to do if you or someone you employ is contacted by NHS Test and Trace, including self-isolation and financial support has been updated to include a section on when to contact your local health protection team.   The employer’s guidance covers sector-specific recommendations on reducing the risk of transmission, the required risk assessments employers should undertake, what to do if an employee develops symptoms and ordering a test and alerting close contacts if the test is positive, self-isolation and contacting local health protection teams. See: https://www.gov.uk/guidance/nhs-test-and-trace-workplace-guidance?utm_medium=email&utm_campaign=govuk-notifications&utm_source=bf653fe6-374f-44f8-af9a-77eb68b4e638&utm_content=daily Register to order coronavirus tests for your employees – England [...]

If you're an employer looking to create job placements for young people, you can apply for funding as part of the Kickstart Scheme. The scheme has changed, and you no longer need a minimum of 30 job placements to apply directly for a grant. You can now apply for a Kickstart Scheme grant by either: applying online yourself. getting help from a Kickstart gateway who is already working with the Kickstart Scheme. There is a new guide for employers and this can be seen here:  https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/958223/kickstart-scheme-employer-guide.pdf

The deadline for applications for the Christmas Support Payment has been extended to 28 February 2021. The Christmas Support Payment for wet-led pubs supports pubs that predominantly serve alcohol rather than provide food and had been severely impacted over the festive season due to temporary local restrictions. Eligible businesses may be entitled to a one-off cash grant of £1,000 from their local council in areas that were under Tier 2 or Tier 3 local restrictions. Local councils will use their discretion to identify the right businesses to receive this funding. See: https://www.gov.uk/guidance/check-if-youre-eligible-for-the-christmas-support-payment-for-wet-led-pubs?utm_medium=email&utm_campaign=govuk-notifications&utm_source=5fb0d557-15fd-4ecc-808f-3cdb5891917c&utm_content=daily

The lists of and information about approved suppliers of private testing kits for coronavirus (COVID-19) has been updated. The Department of Health and Social Care (DHSC) is aware of these private sector (non-NHS) providers who may be able to conduct tests for the presence of coronavirus (SARS-CoV-2). Providers are listed in alphabetical order. They have declared that they meet the government’s minimum standards for providers of Test to Release for international travel or minimum standards for private sector providers of general COVID-19 testing (the Declaration). See: https://www.gov.uk/government/publications/list-of-private-providers-of-coronavirus-testing/list-of-private-providers-of-coronavirus-testing What to do if you’re employed and cannot work – guidance for employees [...]

Many film and television productions have been paused during the pandemic due to a lack of insurance against Coronavirus-related losses, such as filming delays when cast or crew members are ill. The £500 million Film and TV Production Restart Scheme, launched in October 2020, means productions are protected against these delays, giving them the confidence to resume filming. So far, more than 160 productions from across the UK have been approved by the scheme, supporting over £680 million of economic activity and 19,460 direct jobs on productions – from actors and directors, to hairstylists, runners and set designers. New film, [...]