Merranti Accounting Blog

Child benefit clawed back

Child benefit clawed back

July 28, 2021

Child Benefit is a universal benefit; every family with a child under 16 (20 if the child is in approved education or training) is entitled to receive it. However, since 2013, Child Benefit has been clawed back from certain higher rate taxpayers by means of a tax charge. This tax charge applies where the higher

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Umbrella Company IR35 HMRC

Beware of IR35 traps

July 28, 2021

Where a contractor operates via their own personal services company (PSC), work performed for large or medium-sized clients in the private sector may now fall under the ‘off-payroll working rules. This is a new version of IR35, which requires the end client to decide whether there is a deemed employment relationship for tax purposes with

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HMRC targets businesses not using MTD

HMRC targets businesses not using MTD

July 19, 2021

Most VAT-registered businesses have been required to comply with the Making Tax Digital (MTD) regulations for VAT since 1 April 2019. Until now, HMRC has taken a soft approach to those who have not switched to submitting VAT returns using MTD-compliant software, but that is changing. Around 800 businesses have been told that they will

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Facts about exporting goods

Facts about exporting goods to EU

July 19, 2021

Facts about exporting goods to EU- The rules and paperwork required to export goods to EU countries have become much more complicated. As an exporter, you need two EORI numbers: a UK EORI number to include on export paperwork and an EU EORI number for your transport provider and freight forwarder to accept the shipment

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Capital Gains Tax

Capital Gains Tax on sale of homes

July 16, 2021

When do I pay  Capital Gains Tax? The profit you make on selling a buy-to-let property or a second home is generally subject to capital gains tax (CGT). Also, you may have to pay some CGT on the profit you make from selling your main home if you have not lived in that property for

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HMRC Repayment

Repayment claims challenged by HMRC

July 16, 2021

Repayment claims are being challenged by HMRC, do not ignore them when they contact or you risk losing out Many taxpayers are currently claiming tax refunds, as the covid-19 pandemic has turned normally profitable businesses into loss-making ones. Unfortunately, fraudsters are also trying to cash in, by using the ID details of genuine businesses to

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Landlof tenant eviction Property accountant

When will Commercial Evictions start?

July 16, 2021

When will the Commercial Evictions Start again? There has been no rent holiday during the pandemic, but landlords have been barred from evicting tenants from commercial premises. This restriction will now remain in place until March 2022. In addition, the existing debts of unpaid rent accumulated during the pandemic will be ring-fenced, in order to

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company car tax

Company cars – lots of changes!

May 17, 2021

Take extra care when reporting company cars on Form P11D over the coming weeks. For 2020/21, there were significant changes to the percentages that need to be applied to the list price of a car when calculating a benefit, namely: Electric cars now have a zero benefit The percentage for cars up to 50g/km of

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When to register for VAT

When Should you be VAT registered?

May 17, 2021

In simple terms, you should register if in the last twelve months you have turned over more than £85,000, and you should do this within 30 days of the last day. However, if you are trading with VAT registered businesses then you should consider registering anyway because you will be able to claim back the

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Furlough Update

Furloughing extended / Self Employed Grant

May 17, 2021

The Coronavirus Job Retention Scheme (CJRS) for furloughed workers has been extended until 30 September 2021. Currently, the worker must receive a minimum of 80% of ‘normal’ pay for their furloughed hours and this will continue through to September. Until 30 June 2021, the position of the employer will be unchanged, namely: They can claim

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