The complex procedures for these returns are what make businesses suffer from confusion and other complexities. However, before you get started with the process, you should be aware that output VAT is charged on the sale of your business’s goods and services, and input VAT is something that you can claim on your purchases and the expenses that you have made for your business.

To ensure that there are no complexities during your VAT returns, it is recommended that you hire VAT return experts. But before you get to that part, wouldn’t you like to discover how to do it yourself? If yes, continue reading to gather some knowledge about the same.

How Can You Properly File a VAT Return?

To file VAT returns, you need to be prepared with a VAT number and a VAT online account. At the same time, you will need to use MTD-compliant commercial accounting software like QuickBooks or Xero. If you think that you can make good use of any of this software and get the returns filed in the right way, you can proceed further. But if you are confident about it, you might need to hire a specialised team of accountants. In this case, it’s better for you to avoid doing it all by yourself since you are not experienced, don’t have the expertise, and are not familiar with the software.

Three Schemes of VAT You Should Be Aware of

Choosing the right VAT schemes for your business’s good cash flow is what you should do as a responsible businessperson. But to do so, you need to learn about the schemes in detail. So, read the following pointers now:

• • Standard VAT Accounting

This is the scheme where all your VAT is recorded based on when the payment or invoice for sale is issued. Through this scheme, you can file your VAT returns every quarter.

• • Flat Rate VAT

This scheme is meant to provide you with incentives in order to simplify taxes. This way, it allows your business to charge 20% VAT on sales while paying HMRC at a lower rate.

• • Cash Accounting

If your business has a turnover of more than 1.35 million euros in VAT-able revenue, you cannot use this scheme for your VAT returns. If you have purchased goods for your company but haven’t paid for them yet, you cannot claim VAT on them.

How Can an Accountant Help Successfully File VAT Returns?

There are higher chances of you making mistakes in filing VAT returns. So, if you do so, HMRC may send an investigation notice to you. If you want to avoid this, you should hire a specialised team of accountants for the job. They can help you reduce the rate of errors or mistakes when filing the returns. Simultaneously, they will make sure that your business is compliant with MTD and make use of efficient accounting software for the procedure.

In order to acquire the best team of accountants or VAT return professionals, you need to find the best VAT return service at all costs. This way, you can successfully submit your VAT returns and enjoy the biggest benefits down the line for your business.

VAT Returns Made Easier with Biz Accounting Solutions Ltd!

Our team of specialised accountants can undoubtedly be your ideal companion on your journey to successfully filing VAT returns. So, call us now at 0787 722 4964 to bring them on board without any further delay!

The post Do You Really Need an Accountant to Make Your Vat Returns a Success? appeared first on BIZ Accounting Solutions.

• How the Private Residence Relief Works

To get private residence relief, you need to consider a few important factors.

Firstly, if you live in the house, it will be regarded as a ‘dwelling house’ and you are eligible for the relief. Also, if you have a garden or a garage, those will be counted. However, if you are living in the property for a few weeks only, you might not become eligible for the relief. But in these cases, the HMRC will assess whether you can apply for the PRR.

Apart from only ‘living’ in your property, you will need to cook, sleep and spend your time in leisure if you want it to be considered as a ‘dwelling house’ and get relief from CGT. On the other hand, if you use your property for business purposes, you will not be entitled to the relief. Also, if you have more than one property, you will need to notify the HMRC about the one that you consider to be your main residence. But if you are facing difficulties in the process, hiring a tax advisor in Reading & Wokingham in Berkshire County will be required to simplify it.

• PRR When You Are Married

If you are married, you and your spouse can only have one residential property if you want to become eligible for the PRR. However, if you and your spouse own individual properties and are still using them post-marriage, a joint nomination will be required to consider only one of these two properties to be eligible for the relief. But you and your partner can decide which of the properties should be considered for relief.

You will need to keep in mind that after the nomination, the other property will be liable for capital gains tax. To know more details on this topic, it’s best to consult a tax advisor in Hurst, in Berkshire County.

• Periods of Absence Considered When Calculating the Relief

If you are not residing in your property for a certain duration, you are still eligible for PRR.

When it comes to your absence in the property, it should not exceed three years. Also, you will not be eligible for the relief if you are employed outside of the UK. But if you are in the UK and need to move to a different country as required by your employer, it should not exceed four years.

However, if you are staying at your residence for the last 18 months, for instance, and want to sell it, you will be eligible for the PRR. Still, if you want to know more on the topic and stay in north Bedfordshire, you will need to hire a tax advisor in Riseley for detailed guidance.

• New rules when it comes to PRR

With effect from 6^th April, 2015 the PRR rules were amended and the new rules are applicable for both UK and non-UK residents.

Here, to get the tax relief, you have to be a tax resident and have to spend 90 nights on your property in the tax year. But there are other regulations too which a professional tax advisor can provide you with.

Qualified Accountants Ready to Assist You with PRR and CGT

If you are searching for chartered certified accountants in Reading and other areas of Berkshire County, Biz Accounting Solutions Ltd is here to meet your needs. So, call us if you want to book an appointment with our accountants.

The post How Private Residence Relief Can Exempt The Capital Gains Tax? appeared first on BIZ Accounting Solutions.

In fact, a quick look at the Multiple Dwelling Relief (MDR) will reveal its efficacy in reducing the Stamp Duty Land Tax (SDLT) and its equivalent in the Wales and Scotland and it applies if and when an individual purchases two or more dwellings or conduct any transaction or a series of transactions related to those handover of the ownership of those dwellings. 

What is meant by ‘dwellings’? 

By definition, ‘dwellings’ can be defined as properties or houses that have a separate first floor, having bedrooms, bathroom, kitchen, its own boiler, doorbell, separate entrance, electric connections. Seemingly, it should be separated from the principle portion of the property, but with a shared, common front door, stairs and hallway. 

Now discussing about the Financial Transaction Tax (FTT) the appeal involves two elements – Whether the HMRC has raised the equity within the time frame allowed, and the entitlement to the MDR. Thus you see, these are the elements that can best be handled by the seasoned accountants in Reading or elsewhere.  Therefore, it is the responsibility of these professionals to disclose all the technicalities of MDR and guide their clients to avail the exemption. 

Indeed, these accountants have to play a pivotal role identifying the tax savings, which can benefit both the parties, including their clients. If the purchaser of the multiple dwellings can reap benefit out of the reduced SDLT liability, it will be possible for them to get additional funds for even a higher and more lucrative offer. 

This will mean a more delighted seller and increased commission. Thus you see, the competency of these professional accountants not only helps their clients but will leave these accountants beneficial as well.  

Do the MDs (multiple dwellings) have the necessary facilities, so that they can be considered, ‘MDs’?

Does the dwelling contain spaces that can be used as bedroom, and washing facilities? Does it include a kitchenette or a bathroom? Though typically these are not accounting queries, but still it is, strictly speaking, the duty of these tax advisors in Reading to help their clients identify the characteristics, so that they do no find themselves at the wrong end of the barrel while seeking the tax relief or exemption. 

Also, it their duty to help their clients  and advise them, whether the dwellings are technically separate and independent from the main building, so much so that it can be clubbed under the MD category. 

There have been instances when granny annexes and converted garages, converted party barns and garden offices have failed to get into the category of the MD and their owners failing to get the exemptions, due to the misguidance of their accountants.

Thus, the chartered certified accountants in Reading or anywhere else have to be absolutely sure before guiding their clients to go for the purchase and then make arrangements for the relief. Remember, one of the most common issues that have been seen is that the property with an additional dwelling could not be accessed independently just due to the incompetency of the accountants, who misguided their clients and told them to refrain from applying for the tax relief.  

Sellers of these properties can increase the value of their properties pretty significantly by making certain minor adjustments and enhancements. This is to increase the likelihood of getting the relief. If such adjustments and alterations, enhancements have been made, that should reflect properly in the sales particulars as these particulars will be viewed as 3rd part documentation of the property subject to purchase. Again, the tax advisors have a key role to play in this regards. 

Therefore you see, if you are going planning to purchase MDs, you need to get in touch with quality accountants who will help you in getting maximum relief. 

We at Biz Accounting Solutions Ltd ought to be the home to the best accountants, who can guide you through the purchase and the tax relief. Call us at (0)7877 224964 / (0)1183671854 or email us at enquiry@bizasl.co.uk during our hours for further details.

The post What All Does an Accountant Need to Tell You about Multiple Dwelling Relief? appeared first on BIZ Accounting Solutions.

The Tax Exemptions on Company Car

Company tax does not apply on every company car. There are exceptions and when you hire us our accountants in Reading would guide you in this. As per HMRC rules, businesses enjoy exemption, if and when:

• They are one of the partners in  a partnership venture 
• They are a partner of any Limited Liability Partnership (LLP)
• They are the proprietor of their own business 
• The car has been adapted for mobility purpose 
• The car is NOT used for any personal purpose that has nothing to do with the business. 

In fact, when the company car is used exclusively for the purpose of business, the companies enjoy exemption from HMRC tax. In other words, if the car is left at the business premise overnight or during the weekends and is solely used for commuting for the purpose of meetings, business activities etc. tax is exempted. However, commuting for personal reasons is NOT exempted by the HMRC. 

Again, if the vehicle is a pool car, tax is exempted. Our tax advisor in Reading will explain that since such a pool car is shared by the employees for business purpose, and is retained at the business premise, tax is exempted.

The Clauses in regards to Vans

The HMRC tax exemption rules regarding vans are pretty much the same.. Tax is exempted if the van is used as a pool van and solely for business purposes. The use of the van for business purposes includes travelling to appointments and to temporary workplaces. However, the professional accounts in Wokingham have to notify their clients about a few more exemptions. In case of vans, tax is exempted in case of insignificant private journeys. In other words, minor detours for picking up a newspaper on the way to the business or a short stopover for a cup of coffee are exempted from the HMRC tax. 

How to minimise the tax on shared company cars? 

The HMRC tax rules for a company car, which is meant for more than a single employee for private use, are definitive. However, in case the business involves members of the same family, for example two siblings or husband and wife, things can get a bit tricky. Again, it is the responsibility of the professional accountants in Wokingham to guide their clients through these confusions. 

It is advisable that the car is made ‘available’ to both the partners in these cases, as it will reduce the tax to some extent and keep away from the attention of HMRC. 

Thus, when a company car is being ‘shared’ between two, the taxable amount will be divided in a reasonable and justified proportion between the two. 

Reducing the company car tax

As per the professional accountants in Woosehill, the easiest way of reducing company car tax is getting a low emission vehicle. The tax is calculated on the basis of the following: 

• The amount of CO2 emitted by the car 
• The P11d value
• The tax bracket

Thus, one has to get the P11 value as low as it can be and a low CO2  emission to reduce the tax. For those who are wondering what the P11 value is, it is: 

• The list price of the manufacturer including the factory option 
• VAT and delivery 
• Number plates and other options of expenses

Therefore you see, there are so many clauses in regards to HMRC company car tax and so many ways to reduce it. It is the responsibility of the professional accountants in Hurst to guide their clients all the way through. 

This is where we at Biz Accounting Solutions Ltd make the difference. Our expert accounts and tax advisors are there to guide you through. So dial 44 07877 224964 or 01183 671854 to fix an appointment. 

The post Role of an Accountant in Helping Clients Reduce HMRC Tax on Company Car appeared first on BIZ Accounting Solutions.

VAT on Fuel

There are a number of businesses that tend to reclaim VAT on the fuel that they procure for business purposes. However, while doing so, they do not restrict the proportion to the fuel that is used exclusively for business purposes. As per the HMRC norms, it is imperative to show the detailed mileage records that will support such claims. While these minute mileage logs are pretty labourious and arduous to maintain, businesses have to pay a scale charge as an output tax, to keep an account of the fuel that was purchased for personal use. This is where the majority of mistakes are made, wherein the accountant makes mistakes while calculating the personal usage amount of the fuel. Here is where our accountants in Reading or elsewherewould make the difference with their skill and expertise.

VAT on Vehicles

The HMRC does not permit recovery of VAT on the purchase of a vehicle for the use of business unless it is shown and confirmed that the car is, and can be used exclusively for the business purpose. HMRC allows reclaiming of VAT only when the strict conditions in regards to its use are met. This is another area where the accountants make an error while calculating the VAT. Another very common error is a charge of 100% of VAT as input tax, in the case of vehicles that are used only for business purposes. The input tax recovery, in this case, should be limited to 50% – something that our tax advisor in Wokingham or other locations will always follow.

Claim of VAT on Non-vatable Items

At times, businesses will end up claiming VAT on non-vatable items like air and train fares, cabs, and taxi fares. This is a mistake, as passenger transport expenses are zero-rated as per HMRC rules. This is another mistake that our experts will save you from.

Error in Regards to VAT on Deposits

Often businesses would receive deposits from their customers while accepting the order of goods or services from them but would fail to charge for VAT on these payments till they receive the balancing payment. This is an error that our accounting professionals will never indulge in.

Missing our VAT Charge on nonstandard supplies

Businesses generally never commit any mistakes while charging VAT on their core supplies. However, when it comes to charging VAT on something out of the box, there is every chance of committing mistakes. This is where our Accountants in Barkham and in other cities would make a difference with all their experience and skill.

Reclaiming Input Tax Without any Supporting Invoice

For recovering the VAT that is incurred on expenses, businesses have to provide supporting VAT invoices as evidence for the expenditure. However, they would fail to do so and still claim the VAT, leading to refusal. This is another area, where our accounting experts will make a difference.

Charging VAT on Reverse Charge Receipts

With a large number of business activities getting international, notwithstanding the pandemic constraints, more and more businesses in the UK are now getting supplies from overseas.  Thus, invoices that are received from overseas businesses will not be included in UK VAT. But then, they are at times included by the accountants. So that’s a mistake and our accountants in Hurst and elsewhere will never commit and will adhere to the reverse charge procedure.

Charging VAT on Entertainment

HMRC would never allow charging VAT on entertainment. Many businesses would not appreciate that and will consider charging VAT on it, arguing and considering that to be a business expense. As an example, they would often show the instance of taking a client for lunch. However, the rule is that any practice of entertainment is excluded from input tax recovery, and accountants looking after VAT have to be strict on this. This is something our accountants will always have a strict vigil on.

Import VAT errors

Our accountants would never commit any mistake while importing VAT following the receipt of the official documentation from the HMRC as evidence of the import, called the C79 certificate. It is generally received almost 3 weeks following the month-end during which the goods reach the company in the UK.

Errors while dealing with aged creditors

A number of businesses have to deal with bad debt relief rules days in and days out for applying to claim VAT on the unpaid debt. However, most of these businesses do not understand that they have to repay the input tax to the HMC on the invoices which have been recovered from the suppliers, with their payments still remaining outstanding for over 6 months. This is what our tax advisors in Mortimer Common or elsewhere will keep a close eye on the same.

Final Words: Liabilities on VAT

Mistakes do take place in the accounting world and tax and VATs are no exception. Indeed, to avoid mistakes, HMRC has come up with dictums and has a dedicated regime that deals with mistakes and their consequences. VAT, by its very nature, is unique and any mistake in the calculation and claims will directly affect the customer at the end of the day and the business that has charged the VAT amount wrongly.  That is why, you need to be indeed very cautious in calculating the VAT and that is also the reason, why you need to put stakes on the very best.

This perhaps tells you why we at Biz Accounting Solutions Ltd are so famous for our experience, skills, and perfectionist approach. Call us at 44 7877224964 or 01183 671854 during our business hours.

The post What are the Top 10 VAT Inspection Errors that Seasoned Accountants Avoid? appeared first on BIZ Accounting Solutions.

New steps are taken and businesses and austerity measures in the form of financial push in and other measures are being taken. The UK is no exception. The government has been taking certain steps to bring in the economy back to track. Here on this page, we discuss in short, a few such steps.

Expansion of Job Support Scheme to Help Firms facing closures…

Rishi Sunak, the Chancellor of the Exchequer has made an announcement of a new Job Support Scheme (JSS) in place of the Coronavirus Job Retention Scheme (CJRS), which will be put into effect from 1st November 2020. The new scheme has been particularly designed and expanded for protecting jobs and supporting businesses that were getting perilously close to closure, due to the COVID-19 restrictions. This new scheme is supposed to run alongside the JSS and will be in effect for 6 months. The austerity measures will be made in arrears, through an HMRC claim service, which will be available from December. Thus, it is the responsibility of the accountants in Reading who are being hired by various businesses, to help them make the most of this new scheme.

What does it mean? 

Minimum work: For enjoying a rebate on an employee’s pay under this scheme, the workers will have to work at least 33% of their normal working hours and should NOT be under redundancy notice. This minimum threshold eligibility will come into effect for the initial three months of the scheme, following which the government will decide whether to extend it. Thus, the employers will have the option of cycling their employees on and off the scheme and they do not have to maintain the same pattern of duty or working hours every month. However, every short-time working arrangement has to cover at least seven days, as a minimum coverage period.

Contribution for the unworked hours: For every hour that is not worked, the Employee as well as the government will have to pay one third of the usual pay of the worker, and the government contribution will have to be £697.92 every month. In other words, the employees can receive at least 77% of their pays, wherein the government contribution is not capped. The grant, thereby will not cover the NI or pension contribution of the Class 1 employers, though these contributions will remain payable by the employers.

The Closure of the Coronavirus Job Retention Scheme (CJRS)

The decision to close down the Coronavirus Job Retention Scheme (CJRS) has left the business fraternity in a dilemma. However, the truth is that there is simply nothing to be worried about. The CJRS was originally designed and incorporated for encouraging the employers, to furlough their staff, rather than firing them. The scheme is set to expire on and from 31st October 2020. Thus, if you run a business and if you have plans to get its benefit, you must take your final claim before 20th November 2020 for the periods ending before 31st October for avoiding possible penalties.

Moreover, in case you have overclaimed any grant, you must notify the HMRC (Her Majesty’s Revenues and Customs) about it, using the steps that are notified under the scheme.

Self-assessment taxpayers are being offered extra 12 months for payment

This is another measure that the government is rolling out for the benefit of the taxpayers, wherein those in self-assessment get the option of spreading their payments over 12 months. Indeed, the self-assessors, who were finding it difficult to pay, could postpone their payment on account for July 2020 till 31st January 2021 because of this pandemic. However, the scope of this liberty has been extended further for those who were required to pay up to £30,000. Those individuals who qualify for this scheme will have the option of using the ‘Time to Pay’ service of HMRC, for payment throughout another 12 months. However, for that, the taxpayers need to discuss in detail about the formalities with HMRC, in regards to their assets and the reason behind their failure to pay on time. Thus, it is the responsibility of the tax advisors in Arborfield to discuss things with the HMRC, at the behest of their clients. Here is where the experience of these tax advisors comes into play. And here is why you need to hire a company that is reputed and experienced. What better name can you opt for than Biz Accounting Solutions Ltd for this? To summon, call us at 44 7877224964 or 01183 671854 during our office hours.

The post The New Financial Schemes during the Post Pandemic Period appeared first on BIZ Accounting Solutions.

Indeed, this new era accounting comes up with a string of benefits. These state of the art accounting software applications are extremely convenient tools, wherein the application is hosted by a service provider. Technically, this goes a long way in curtailing the problem of installation as well as maintenance of the software. Thus, professional accountants in Riseley as anywhere else are benefited immensely by these software platforms.

It provides universal accessibility:

Indeed, this high-tech accounting system offers universal acceptability. In other words, if anyone wants to take a look at the data or access the bank accounts, or track the inventory, sales and expenses and the likes, any time and from anywhere on this planet in a legal and authorised way, this is the  accounting technology that will provide that option. This new-age technology has made it possible for the users and stakeholders to have a look at the financial data in real-time and access the same from anywhere without any problem whatsoever.

As the entire constellation of the data is stored in a single platform, the entire database can easily be dealt with and accessed by authorised personnel. In situations like this, when the various stakeholders are located at different locations and their mobility us restricted by lockdowns and other curbs or traveling, cloud-based computing and accounting systems have come up as the savior, helping the stakeholders to carry out their accounting duties and responsibilities from their respective locations in an uninterrupted way.

Thus, when things come down to dealing with accounting functionalities, your accountants in Spencers Wood will be able to carry out their responsibilities from remote locations unabated, with the use of this high-end accounting technology.

The Technology works smarter & Faster:

At times, bookkeeping tends to turn out to be a somehow mundane and tiring task even for the professionals. They tend to get fed up with the daily procedures and when a sense of monotony creeps in, that leads to mistakes due to mental fatigue. Here again, this accounting technology comes into play, helping the professional accountants in Charvil like anywhere else in a great way.

Automated cloud-based accounting procedure takes the burden of carrying out everyday billing, transaction reconciliation, invoicing and the likes, lending speed and accuracy, and taking the element of frustration off from the task. Thus, at the end of the day, the accounting becomes faster and quicker and that’s what helps businesses in a great way, quite understandably.

Even when we speak about small businesses, this new-age technology will help them in a great way as a quicker accounting solution means the stakeholders do not need to spend much time for accounting and can instead utilize their time in dealing with things needed for further business growth and promotion. Also, perfection of this system helps these small businesses to get rid of accounting compliance issues.

Data Storage & Backup without any Hiccup:

One of the most prominent benefits that are derived from the automated accounting platforms is that the user can enjoy total freedom from all the customary problems of backing up and storing data.

The small businesses that deploy high quality, cloud-based accounting platforms are never impacted by the restriction in the mobility of the employees and the accountants in Mortimer Common – a very obvious phenomenon in this COVID 19 infected era. Thus, even the accountants and the business stakeholders are miles apart, this accounting system would help them take data storage and backup without any technical hiccup whatsoever.

Thus, you see, in this era of restrictions on traveling and a high risk that is associated with traveling, where work from home is the neo-normal way of running a business and related task, cloud-based accounting is one of the mainstays of keeping the wheel of accounts rolling unabated.

Therefore, if you are a small business and looking for accounting professionals who can take advantage of this new-age technology to come up with a flawless accounting system, hire Biz Accounting Solutions Ltd. We are home to some of the best professional accountants who will use the state of the art accounting system and help you in your accounting for your business in this difficult time. For further details, call us at 01183671854 or 07877 224964.

The post How Cloud-Based Accounting System Is Beneficial For Business during This Pandemic Period appeared first on BIZ Accounting Solutions.

The impact and its intensity of the debacle on businesses

The first and the largest sect of businesses are those which are functioning in a triage mode at present – putting more emphasis on areas like crisis management, reduction of the workforce, and management & navigation of virtual work environment, digestion of the new legislation, and continuity of business to ensure survival in the face of this unprecedented global crisis.

The second group consists of those that are going through a sudden spike in the demand due to this pandemic and are having trying time to meet the demand. These fortunate businesses are deemed essential and include those dealing with medical products, food, and agri-products, telecom, cleaning products are so on.

The third cluster consists of those who are yet to suffer the full impact of this mayhem. A majority of these companies are currently having a backlog in their business, which is helping them to stay afloat. However, these companies must maintain a strict vigil on their cash flow to make sure that they remain strong enough to endure in case any situation arises, when they are not able to restock their pipeline when new businesses come in.

Irrespective of the group a business falls into, it needs to take certain rudimentary, yet critical actions, which will help it to weather this storm and thrive forward. This is where experienced and certified accountants in Wokingham of reputed firms like Biz Accounting Solutions Ltd come in handy. They assist their clients through this rough weather, upon being hired by these companies.

Means to weather this storm – communication is the key

The key to success in braving the storm striving forward is communication. Indeed, the success of businesses would evolve around this core factor.  Businesses must maintain close contact between their strategic partners, employees, and the end customers.

Businesses have to empathise with the customers, put themselves in the customers’ shoes, gauge things from their perspective, and put across the message to them, they are an extended family of the business. This is not rocket science and does not take much to make it happen. Simple steps like asking the customers about how they are doing, and what their needs are, make a lot of difference. This can be done through online forums or through other communicative channels like chat boxes on websites and dispatch of newsletters.

Going the virtual way

Besides taking to the virtual world for effective communication, a business also needs to ensure that its key finance and business process are always operational in a virtual environment.

The most critical component of this strategic transition is accessibility. Businesses should move their entire operating system to the cloud, as it will help them eliminate the requirement of on-site accessibility. It will also result in better and easier data usability, whether it is for financial accounting or for making better-informed and timely business decisions. Again, the experience of professional accountants in Wokingham belonging to a reputed accounting firm will come in handy.

Thus you see, the accounting firms like Biz Accounting Solutions Ltd have an extremely important role to play in this unprecedented rough economic weather and guide their clients through in their effort to stay afloat and strive forward. If you are looking forward to hiring us, call us now at 44 7877224964 during our business hours. However, if you are calling for the first time, you are free to call me anytime.

The post Covid-19 and its Effect on Business Accounting – Instant Actions to Weather the Storm appeared first on BIZ Accounting Solutions.

As per the latest economic data, the economic activity in the UK shrunk by 20.4% in April, which is the steepest fall ever recorded since the second world war. Coupled with the decline in growth during the first quarter of 2020, the COVID 19 crisis has driven the UK economy down to the tune of 25% till April. However, following the easing of the lockdown on and from 15^th June, the economy is showing slight signs of rising. While 79% of the UK businesses have continued with their operation, further 9.3% has resumed the operation following the ease of the lockdown period.

However,  way back on 17^th March 2020, the Chancellor of the Exchequer, Mr. Rishi Sunak had announced a new COVID 19 Corporate Financing Facility (CCFF), designed to help the larger, the financially more sound companies that have suffered due to the economic disruption triggered by the spread of the epidemic.

Thus, it is the responsibility of the professional accountants in Grazeley who are working on the behalf of various financial institutions to explain to their clients the efficacy of this scheme and how the companies are going to benefit from this scheme. That is where we at Biz Accounting Solutions Ltd make the difference. Our highly competent accountants are more than ready to provide detailed inputs of this scheme to our clients.

The objective of this Scheme

Nevertheless, let us on this page, discuss the efficacy and effect of this scheme. The CCFF is designed to support businesses that are looking for market-based finance to boost their surging working capital and to meet various short needs, much due to the compressed cash flow resulting from the economic meltdown.

While further details about the scheme are still not out, the Bank of England has already set in broader terms, the way the scheme will work and the businesses that are eligible to get the support. Here again, it is the responsibility of the accountants in Reading to find out whether their clients are eligible for the scheme or not.

How will the CCFF Function?

The Bank of England has come up with the Corporate Financing Facility Limited (the Fund), which is designed to purchase the Commercial Paper (CP) maturity of up to one year, which are issued by firms. The Fund is supposed to purchase the newly issued CP on the primary market, through the dealers and after the issuance from the eligible counterparts of the secondary market. The purchases, however, will be financed by the central bank reserves.

What is the tenure of the availability of CCFF?

The CCFF is designed to be valid for a minimum period of 12 months and will continue to be in use until the cash flow pressure of the eligible companies does not ease out. However, a six-month notice period will be served to the companies, before the withdrawal of this facility.

Who will issue the CP?

The fund will purchase the CP that is issued by the companies, which make a material contribution to the UK economic activities, and used to enjoy a short or long term investment grade rating before the pandemic struck, or those who had a financial strength equal to the investment-grade rating.

The company eligible to issue the CP:

• Has to be a substantial employer in the UK
• Has to be headquartered in the UK
• Has to be incorporated in the UK
• Has to serve a substantial amount of revenue in and for the UK
• Serves customers of the UK
• Has multiple operating sites in the UK

Thus, you see, there are so many modalities to be realised by a business in regards to its eligibility to enjoy the CCFF scheme. This is where hiring Biz Accounting Solutions Ltd will make a difference. Our accountants in Earley will leave no stones unturned to explain the technicalities of CCFF and other aspects to our clients. For further details, call us at +44 7877224964/0118 367 1854.

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Personal allowance: £12,500 (for 2020-21) similar to 2019-20.

But this allowance was reduced by £1 for every £2 income from £100,000 to £125,000.

• Personal allowance income limit; £100,000 (consistent with 2019-20)
• Basic rate tax payer- £1000 (for 2020-21 & 2019-20)
• Higher rate tax payer -£500 (for 2020-21 & 2019-20)
• Additional-rate tax payer – £0 (for both)
• Dividend allowance- £2000 (for 2020/21 & 2019-20)
• Trading property allowance- £1000 (for both).

However, an important note here is that traders/landlords having gross income from all these sources in a sum amount exceeding £1000 have the right to deduct their allowance from their gross income mainly as one alternative to claim their expenses.

• Marriage partner transfer allowance-£1250 (for both years).

If there are unused personal allowances, they may be transferred to the civil partner or spouse. The person receiving the sum will not be entitled to any higher or extra rate tax.

• Married couple allowance- £9,075 (2020-21) in comparison to £8,915 (2019-20)

Minimum amount allowance for (2020-21) is £3,510 in contrast to £3,450 (in 2019-20). Also, the income limit saw a slight increase in (2020-21) with £30,200 as opposed to £29,600 (in 2019-20)

• Blind individual’s allowance- £2500 (for 2020-21) in comparison to £2450 (2019-20)
• Renting a room allowance-£7500 (for both years)

INCOME TAX BANDS & RATES (Comparison between 2019-20 & 2020-21)

• The starting rate of savings is up to £5000 for 2020-21 (similar to last year).

Note- the starting rate doesn’t hold if the taxable sum surpasses the starting rate limit.

• Basic rate band- £37,500 (for both years)
• Higher-rate band-£37,501 to £150,000 (both years)
• Additional-rate band- Exceeding £150,000 (both years)
• Basic rate-20% (no changes to last year)
• Higher-rate- 40% (similar to 2019-20)
• Additional-rate- 45% (consistent with 2019-20)
• Dividend basic rate- 7.5% (both years)
• Dividend higher-rate-32.5% (both years)
• Dividend additional rate-38.1% (both years)

LIMIT FOR INDIVIDUAL SAVINGS ACCOUNTS

• The entire investment limit offers an allowance of £20,000 (for 2020-21) which is consistent with last year’s overall limit.
• As for junior account investment limit, the allowance is £9,000 (for 2020-21) in comparison to last year which was £4,368

CAPITAL GAINS TAX SHEET (COMPARING 2020-21WITH 2019-20)

Starting with Main Taxes which include:

• Individual Basic-rates- 10% for both years
• Individual Over basic-rate- 20% for both years
• Estates and Trust- 20% for both years

• Surcharge for profits on chargeable housing property is 8% for 2020-21(similar to last year).
• Annual Exemption for Individuals (£12,300 for 2020-21 in comparison to £12,000 for 2019-20) and Trusts (£6,150 for 2020-21 showing a slight increase to £6,000 in 2019-20)
• Entrepreneur’s relief- lifetime limit (starting from 11.3.20) is (£1m for 2020-21 as opposed to £10m in 2019-20) and applicable rate (10% for 2020-21 is consistent with last year)
• Investor’s relief – lifetime limit is (£10m for 2020-21 consistent with 2019-20) and applicable rate (10% for 2020-21 also consistent with last year)

SELECTED RATES (Comparing 202021 with 2019-20)

• Basic State Pension Allowance – £134.25 (for 2020-21) as to £129.20 (for 2019-20)
• New State Pension Allowance – £175.20 (for 2020-21) in comparison to £168.60 for (2019-20)

Statutory Pay Standard Rate Allowance – Entailing the Average Weekly Yield [£120 (£118) or Over]

• Sick Pay- £ 85 (for 2020-21) as to £ 94.25 (for 2019-20)
• Shared Parental Pay – £ 20 (for 2020-21) in comparison to £148.68 (for 2019-20)
• Paternity Pay–£ 20 (for 2020-21) in comparison to £148.68 (for 2019-20)
• Adoption Allowance –£ 20 (for 2020-21) in comparison to £148.68 (for 2019-20)

PENSION ALLOWANCE (2020-21)

The lifetime allowance limit has increased slightly this year £1,073,100 in comparison to 2019-20 figures which was £1,055,000.

However, the annual allowance limit (£40,000) and the money purchase annual allowance limit (£4,000) for 2020-21 remains consistent with last year.

(DISCLAIMER)

These aforementioned rates are to be used for guidance only. Some figures are subjected to change due to different situations and individuals.

The wise choice would always be to consult with a professional and experienced tax advisor working in Wokingham before making any taxation decision.

BIZ ACCOUNTING SOLUTIONS LTD– consists of a diligent group of tax advisors and accountants working across Wokingham to help you out.

Our taxation specialists are up-to-date with the latest Tax Rate Sheet for 2020-21 and will help you with Corporation tax return, Inheritance tax, Capital Gains tax and even during preparing and filing accurate returns.

CALL US FOR OUR TAX RETURN SERVICES TODAY!

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