HLAS

HMRC has issued a template with the details of the employees you are claiming for (on or after 27 May 2021). If you are claiming for 16 to 99 employees on or after 27 May 2021, you will need to upload a file containing the following information for each employee: full name National Insurance number (or payroll reference number if you do not have this) payroll reference number (sometimes called a pay identify or staff number) furlough start and end date (using the format DD/MM/YYYY) full amount claimed (pounds and pence) normal hours (using decimals, for example 7.5) actual hours [...]

The ONS has published its latest paper on how the relationship between UK public sector monthly income and expenditure leads to changes in deficit and debt for the financial year ending 31 March 2021. The figures are subject to adjustment but show the stark reality of the effect of Covid-19 on the UK economy and the extent of government support Public sector net borrowing (excluding public sector banks) in the financial year ending (FYE) March 2021 is estimated to have been £303.1 billion, £246.1 billion more than in the year to March 2020 and the highest nominal public sector borrowing [...]

The current guidance from the 17 May is to continue to work from home where you can and when travelling within the UK, you should aim to do so safely and plan your journey in advance. After some confusion last week, there is also revised government guidance if you live in an area where the new COVID-19 variant is spreading. The government advises that you should try to: meet outside rather than inside where possible keep 2 metres apart from people that you don’t live with (unless you have formed a support bubble with them), this includes friends and family you [...]

A recent case before the tax tribunal has confirmed that all of a company’s shares are ordinary shares except those that carry a fixed rate of return. This is crucial as CGT business asset disposal (BAD) relief requires a shareholder to be entitled to at least 5% of a company’s ordinary share capital in addition to being an officer or employee of the company, and for the company to be a trading company or the holding company of a trading group. These conditions need to be satisfied throughout the 24 months prior to the disposal of the shares. This two-year [...]

Despite the coronavirus lockdowns HMRC still expect P11d forms reporting expenses and benefits to be submitted by the normal 6 July deadline. Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee's duties. Dispensations from reporting are no longer required, although HMRC would expect internal controls to be in place.

These are the suggested reimbursement rates for employees' private mileage using their company car from 1 June 2021. Where there has been a change the previous rate is shown in brackets. Engine Size Petrol Diesel LPG 1400cc or less 11p (10p) 8p (7p) 1600cc or less 9p 1401cc to 2000cc 13p (12p) 9p (8p) 1601 to 2000cc 11p Over 2000cc 19p (18p) 13p (12p) 14p (12p) Note that for hybrid cars you must use the petrol or diesel rate. You can continue to use the previous rates for up to 1 month from the date the new rates apply.

Another consequence of the lockdown periods is that employees may have driven fewer private miles in their company cars, particularly where they have not been driving to the office. If they are to avoid being taxed on the provision of private fuel they need to fully reimburse their employer for the cost of private fuel by 6 July 2021 for the 2020/21 tax year. Note that the CO2 emissions percentage for the car is multiplied by the £24,500 notional list price used to calculate the benefit. For example, a director driving a Mercedes Benz E200 saloon company car (CO2 emissions [...]

P11d forms reporting benefits in kind provided to employees and directors need to be submitted to HMRC by 6 July. Where a company car is “unavailable” for private use for 30 or more consecutive days the benefit is proportionately reduced. During the various lockdown periods many employees and directors have not been using their company cars and it may have been sitting on their driveway. Unfortunately, that does not count as being unavailable. HMRC have confirmed that they would continue to regard the car as available to the employee unless the keys or fobs are returned to the employer or [...]

HMRC are urging businesses to look out for the use of mini-umbrella companies (MUCs) to pay contractors supplying their labour via agencies and other intermediaries. Businesses need to be aware of the financial and reputational risks of such entities in their labour supply chain and carry out due diligence to minimise those risks. You may have heard a BBC File on Four radio programme that highlighted the abuse of the £4,000 employment allowance by 48,000 companies set up to take advantage of the allowance to save employers national insurance. Such structures are also being used to avoid VAT and are [...]

It is rare for accountants to develop an emotional attachment to a client. Though we do get heavily invested in what our clients do and how we can make their working lives easier – and while we do truly care about each one of them – the relationship remains professional and business-like, as do our feelings, throughout the months and years we work with them. While it is rare to develop an emotional attachment to a client, it is perfectly possible. Meet Case, a charity providing practical support to those with learning difficulties. Find out the excellent work CASE have [...]