A New VAT Deferral Payment Scheme has just Opened

A New VAT Deferral Payment Scheme has just Opened

HMRC have confirmed that businesses that deferred VAT payments between March and June 2020 will be eligible to join the new scheme where they can pay the deferred VAT in smaller monthly instalments. This will now give businesses the option to pay their deferred VAT in consecutive monthly instalments of equal amounts from March 2021.

 

How can businesses opt-in to the scheme?

Businesses can opt-in to this new payment scheme online here. This closes on 21 June 2021. Businesses can spread their payments with 2 to 11 equal monthly instalments, interest-free. The sooner your business opts in the more instalments will be available to spread the cost further.

 

How can we help?

At Hawsons we have a dedicated team of VAT experts at our offices in Sheffield, Doncaster, and Northampton. If you have any questions about the contents of this article please contact Tony Nickson

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Tony Nickson

VAT Consultant, Sheffield

01604 645 600

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HMRC has announced further help for Self-Assessment taxpayers, by extending the late payment penalty deadline until 1 April 2021.  Under normal circumstances, a 5% penalty would be incurred on any tax payments which were due by 31 January 2021 and are still outstanding on 3 March 2021.  This welcome extension means that taxpayers now have until midnight on 1 April 2021 to either pay their outstanding tax or to set up a ‘Time to Pay’ arrangement with HMRC.  These arrangements can allow taxpayers to pay their tax in monthly installments up to January 2022 (or potentially longer in exceptional circumstances), though please note that HMRC will charge interest during this period (currently 2.6%).

If you are facing difficulties paying your tax liabilities and would like further help and advice, please visit the government website here or contact our personal tax expert, Jenny Brown.

 

How can we help?

At Hawsons we have a dedicated team of personal tax accountants at our offices in Sheffield, Doncaster, and Northampton. Our team of personal tax accountants works together to provide proactive, well-rounded, technically robust tax advice to private clients including individuals to help ensure that their tax affairs are in order and are correctly dealt with.

Free initial meeting

Jenny Brown

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0114 266 7141

[email protected]

COVID-19 causes manufacturers to accelerate digital adoption

COVID-19 causes manufacturers to accelerate digital adoption

According to the 2021 Digital Transformation Assessment conducted by The Manufacturer and IBM, 67% of manufacturers have accelerated their adoption of digital technologies as a result of the coronavirus pandemic. Only 16% have suspended their digital adoption projects.

 

Why are manufacturers adopting digital technologies?

Many manufacturers have seen there is a connection between digital adoption and increased productivity, and efficiency. The 2020 Digital Transformation Assessment found that 92% of manufacturers reported that improving their ‘operational efficiencies’ was their number one business imperative. This demonstrates that manufacturers want to adopt digital technologies to become more efficient enabling future growth.

Manufacturers also want to free workers from repetitive tedious tasks so they can work on tasks that will add value to their business. This can lead to boosting staff morale as it is likely they will enjoy their work much more if repetitive tedious tasks are reduced or removed from their working day and because their job would become more interesting and rewarding.

Research has found that manufacturers are focusing on digital adoption in four main areas, these include:

  • IT and/or data systems
  • Product and/or customer growth
  • Efficiency improvements
  • Collaboration

 

What challenges are manufacturers facing when adopting new technologies?

The research found that manufacturers are facing a number of challenges when adopting digital technologies. These include:

  • Time and resourcing
  • Securing internal funding
  • Organisational culture

Respondents cited that finding the correct stakeholders or investors can be difficult, especially those from overseas with the current international travel restrictions. Furthermore, respondents found that rolling out pilot projects successfully across the whole business has its difficulties.

 

How can we help?

At Hawsons we have a dedicated team of manufacturing accountants at our offices in Sheffield, Doncaster, and Northampton. Our specialist team offers a wide range of services which are tailored to meet your individual needs. Our understanding of the issues faced by manufacturing businesses means that we can proactively seek out ways for you to maximise your profitability and minimise your tax liabilities.

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You can find all of our latest manufacturing sector news and newsletters here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

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Chris Hill

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Recent research including nearly 250 charities conducted by Pro Bono Economics (PBE), the Charity Finance Group, and the Chartered Institute of Fundraising found that in the weeks leading up to Christmas charities lost out on more than £200m of fundraising income. Nearly 50% of charities polled raised less in November and December of 2020 than they did during the same period in 2019. The main reason behind this large decrease in income is due to fundraising events being cancelled and charity shops being forced to close for long periods during the lockdown.

Whilst the COVID-19 safety rules have caused many physical fundraising events to be cancelled, there are still fundraising activities that can be done in lockdown for charities to raise money. The research suggests that running and cycling fundraisers have proved particularly popular – provided they are done in isolation and as long as you stick to the government’s social distancing guidelines. For example, the virtual London Marathon managed to raise £16.1m for charities last year. Although this is well below the 2019 London Marathon total of £66.4m raised.

Other virtual fundraising events have included:

  • Online classes
  • Virtual raffles
  • Online auctions

These are undoubtedly difficult times for everyone. Charities play such a vital role in society particularly during unprecedented scenarios like Covid-19 and it’s important they consider ways to innovate to ensure they can continue to provide much-needed support until hopefully some degree of normality returns later on in the year.

 

How can we help?

At Hawsons we have a dedicated team of charity accountants at our offices in Sheffield, Doncaster, and Northampton. Our dedicated team fully understands the complex, ever-changing regulatory requirements of the charity and not-for-profit sector. Irrespective of your size we wish to support you to maximise the benefits you could achieve through our specialist professional advice.

Free initial meeting

Simon Bladen

Partner, Sheffield

0114 266 7141

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The Low Incomes Tax Reform Group (LITRG) has urged the government to raise the High Income Child Benefit Charge (HICBC) threshold to avoid it affecting basic-rate taxpayers for the first time in April 2021.  The £50,000 threshold for the HICBC has remained static since 2010.

The LITRG stated that this goes against the original policy intent, and is “likely to cause the government additional difficulties in raising awareness about the charge among those who do not consider themselves on a high income”.

Tom Henderson, Technical Officer at the LITRG, said:

 ‘When the HICBC was announced in 2010, the government’s policy intent was that it would only affect higher-rate taxpayers from January 2013. For the 2012/13 tax year, the higher-rate threshold – the point at which an individual is liable to the higher rate of tax – was £42,475. Since then, the higher-rate threshold has risen broadly in line with inflation but the £50,000 threshold for the HICBC has remained static.

‘The government has so far resisted calls to up-rate the £50,000 threshold, but this is no longer tenable now the higher-rate threshold will overtake it from 6 April 2021.’

In its Budget submission, the LITRG calls for the point at which child benefit is fully clawed back to increase from £60,000 to £75,000.

 

Who pays the charge?

You may have to pay the tax charge if you have an individual income of over £50,000 and either you or your partner get Child Benefit.  Whoever has the higher income is responsible for paying the charge.

For every £100 of income exceeding £50,000, the charge is calculated as 1% of the child benefit received. This means that if you have an income of £60,000 or more, 100% of the child benefit is repayable via the tax charge.  If you are liable for the tax charge you must register for Self Assessment and complete a tax return each tax year.

 

The Budget

The Chancellor will present the 2021 Budget on Wednesday 3 March.  Our tax specialists will be watching the Budget and will provide commentary on any changes to the High Income Child Benefit Charge.  To pick up on our commentary, follow us on Twitter (@Hawsons) or LinkedIn.

More from our tax experts

You can find all of our latest tax articles and tax resources here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Craig Walker

Tax Director, Sheffield

0114 266 7141

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