Autumn 2021 Newsletter

Is this freedom we can feel?

With an unsettled summer weather-wise mirroring some of the ups and downs of developments around the pandemic, focus is now on trying to get back to a safe normal. The lifting of restrictions has brought hope for personal and business recovery. However rising numbers of infection cases have cast a pall over how long this opening up will last.

Meanwhile, some of the changes enacted in the spring Budget have been creating separate problems for taxpayers. One key issue that has already caused confusion is the online system for reporting capital gains on residential property sales. The new, 30 day reporting and payment deadline has left people unable to take their year-long tax position into account, leaving some unable to easily claim back overpaid CGT when their year end tax calculations are complete. The Office for Tax Simplification is among those suggesting the deadlines need to be extended.

Of course, the ongoing changes following the UK’s exit from the European Union are still affecting many business owners and in this issue we focus on revised VAT regulations for retailers into the EU. The EU has expanded its mini one stop shop (MOSS) to create a one stop shop (OSS), which larger UK retailers can use to their advantage.

The government’s commitment to the climate change agenda is now being felt in the company car capital allowance rules. Only fully electric cars now qualify for the 100% first-year allowance, which itself is being extended to April 2025 to encourage conversion to electric vehicles.

For updates on these issues, as well as the latest Covid-19 business recovery loan scheme, how contractors are using umbrella companies to bypass the complex rules surrounding off-payroll working, and the government’s U-turn to allow plant and machinery in leased buildings to qualify for the 130% super-deduction, see our July newsletter.

With the previously planned autumn Budget now rumoured once again for postponement to next spring, the future tax landscape is again uncertain. As always do get in touch if any of the issues covered may affect you.

 

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