HLAS

In the March 2020 Budget, it was announced that CGT Entrepreneurs’ relief (ER) was replaced by CGT Business Asset Disposal relief (BADR) for disposals on or after 11 March 2020. It was also announced that the 10% CGT rate would only apply to the first £1 million of qualifying gains in the taxpayer’s lifetime and many business owners have misinterpreted how this limit applies.  Unfortunately claims under the predecessor ER need to be taken into consideration so if £750,000 ER has already been claimed only the first £250,000 of qualifying gains after 11 March 2020 would qualify for BADR. Any [...]

Electric Company Car; what you need to know... There is currently a zero P11d benefit for the drivers of electric cars in 2020/21. The legislation for this change is included in Finance Act 2020 which also states that the benefit will be 1% of list price in 2021/22 and then 2% in 2022/23. The zero taxable benefit also applies to hybrid cars emitting no more than 50 grams of CO2 per kilometre with a range using its electric motor of at least 130 miles, but only for cars first registered on or after 6 April 2020. Unfortunately, the range of [...]

Get ready to leave the EU on 1st Jan 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 [...]

Job Support Scheme The Chancellor has announced a new 6 month Job Support Scheme to help businesses and employees survive the winter months. We are still awaiting full details of the scheme that will replace the current “flexible furlough” scheme but the main features are as follows:- Employers of all sizes will be eligible for the new scheme but large organisations will need to demonstrate that their turnover is reduced as a result of COVID-19. Eligible employees will be those on the PAYE payroll at 23 September 2020 that are working for at least 33% of their usual hours. The [...]

The New Normal Businesses and not for profit organisations are now beginning to return to working albeit in a different or changed way. In addition to catching up with outstanding work and organising how to go forward, now is a time to refresh your business planning and in particular your financial plans. Good financial forecasts are even more important now when the future is uncertain and potential future work is in the shadow of Covid-19. We would recommend that at the very least businesses forecast profitability and cashflow for three months in advance. For larger organisations this should be extended [...]