Property demand hits 10 year high

Property demand hits 10 year high

During March 2021 almost 162,000 sales were agreed (according to Twenty CI data). This is a 77% year-on-year increase from 2020. This figure is the highest that Twenty CI data has ever seen since they started recording data back in 2009.

Since the Stamp Duty Land Tax (“SDLT”) holiday was implemented in July 2020 sales agreed figures have risen dramatically with all but two months being in the top 10 list of all time in terms of sales agreed. The two exceptions being December 2020 and January 2021. This is typically the quietest time of year for property sales due to the cold weather and Christmas festivities.

However, what is slightly surprising is that mid to upper-priced properties have increased in sales most significantly. Particularly properties above £750,000. This suggests that the SDLT holiday is not the only factor in such an increase in sales. The SDLT saving is maximised once the price reaches £500,000 with a saving of £15,000, which doesn’t increase thereafter. This suggests that other factors may have come into play such as lifestyle changes due to COVID-19, with the desire for outdoor space and more inside space due to more people spending time in their homes due to ‘working from home’. Therefore, we suggest these factors combined have caused housing demand to explode with demand outstripping supply.

 

How can we help?

At Hawsons we have a dedicated team of property and construction accountants at our offices in Sheffield, Doncaster, and Northampton. Having an accountant who understands the challenges of this dynamic sector and is able to help you plan for the future is an advantage in a competitive environment. At Hawsons we have a great deal of experience in advising and helping businesses in property and construction and we can assist you as your business grows.

More from our property experts

You can find all of our latest property and construction sector news 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

Stephen Charles

Tax Partner, Sheffield

0114 266 7141

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Raw material prices look set to remain high

Raw material prices look set to remain high

A survey conducted by the Construction Products Association (CPA) has found that price inflation for raw materials will continue to rise for the remainder of 2021.

The survey found that housing is leading the economic recovery for the construction sector. But there is expected to be a shortage of materials for the next 12 months. This lack of materials and the increasing demand for them are pushing prices up. The survey also found that the supply of raw materials and components was also a primary concern for manufacturers, with materials such as steel, timber, and chemicals referenced. 90% of heavy side manufacturers stated an increase in cost for raw materials in the first quarter of 2021. Furthermore, 41% of heavy side manufacturers have reported an increase in sales in quarter one.

Heavy side materials are most commonly used in structural materials. Therefore, there are more likely to be used in the early process of construction, for example, steel and cement. The increase in sales is very encouraging. But the continuing price increase suggests that there is a shortage of these materials and the supply chain could be at risk of being held up by a bottleneck which could slow down the economic recovery. However, the trade body has discovered that the extension of the job support scheme and Stamp Duty holiday, as well as the introduction of the new 5% deposit scheme, is anticipated to continue to drive the recovery of the property and construction sector.

 

How can we help?

At Hawsons we have a dedicated team of property and construction accountants at our offices in Sheffield, Doncaster, and Northampton. At Hawsons we have a great deal of experience in advising and helping businesses in property and construction and we can assist you as your business grows.

Free initial meeting

Stephen Charles

Tax Partner, Sheffield

0114 266 7141
Self-Employment Income Support Scheme

Self-Employment Income Support Scheme

The Chancellor has announced further support for the Self-Employed, by making a fourth and fifth grant available under the Self-Employment Income Support Scheme (SEISS).

The fourth grant, covering the period February to April 2021 will be worth 80% of average profits up to a maximum of £7,500. However, the full 80% grant will only be available to those whose turnover has fallen by at least 30%. The grant will be reduced to 30% of average profits for those whose turnover has fallen by less than 30%. A fifth grant will be available from May 2021, however full details of this have not yet been announced.

Unlike the previous three grants, the fourth and fifth grants will be available to Self-Employed individuals who began trading in 2019-20, providing they submitted a Self-Assessment Tax Return for that year. This is expected to provide welcome support to a further 600,000 Self-Employed individuals who were ineligible to claim the previous three grants.

 

Fourth grant now available

 

The online service for applications for the fourth grant is now open. Claims for this grant must be submitted by 1 June 2021. If you think you are eligible for the grant please visit the government website here:

https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme

 

How can we help?

Hawsons has a dedicated team of highly qualified and experienced personal tax accountants who provide personal tax compliance services and advice from our offices in Sheffield, Doncaster, and Northampton.

Free initial meeting

Jenny Brown

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0114 266 7141

[email protected]

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To ensure the continuation of fairness HMRC has decided to implement an accelerated process when it comes to VAT Partial Exemptions. This accelerated process will allow businesses to request changes to their VAT Partial Exemption methods due to Covid-19.

To submit a Partial Exemption Special Method request you will need to send a declaration that the method proposed is fair and reasonable. See example here: https://www.gov.uk/guidance/partial-exemption-vat-notice-706#Appendix1

If the nature of your supplies has changed due to COVID-19 and you believe that you will be moving back to pre-pandemic supplies soon, then HMRC will likely accept proposals that use a representative income stream from the previous 1-3 tax years.

If you believe that your business is eligible to make changes, please visit the HMRC website to find out more details.

 

How can we help?

At Hawsons our VAT expert Tony Nickson has 20 years of experience working at the VAT office, Tony has gained a wealth of knowledge of VAT processes, including VAT visits to customers, client education, VAT repayments, and error corrections. Tony provides practical VAT advice to a wide range of clients in numerous business sectors.

 

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.

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The NHS dental target has been increased from 45% of pre-pandemic activity to 60%. This new target has been active since 1st April 2021. Up until 1st April practices that delivered less than 36% of their pre-COVID activity were subject to financial penalties. At the time these penalties caused a lot of controversy with many dental practices claiming that these targets were completely unrealistic whilst maintaining social distancing and deep cleaning standards to ensure a COVID secure environment. However, it has been found that in February of 2021 the mean performance of Units of Dental Activity (UDAs) was 59%.

The new rules state that NHS dentists deliver at least 50% of their UDAs. If NHS dental practices achieve 80% of the new target, they will not receive a financial penalty. Anything less than 80% will be penalised on a sliding scale. Therefore, those practices that achieve close to the target will be penalised less than those practices that do not get close to the target at all. This scale has been designed to give practices an incentive to achieve a high UDA as possible.

Full details about the announcement and conditions can be found here

 

How can we help?

At Hawsons we have a dedicated team of dental accountants and tax advisors offer specialist accountancy and taxation services to dentists and their practices at our offices in Sheffield, Doncaster, and Northampton.

More from our care sector experts

You can also find all of our latest care 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.

Free initial meeting

Scott Sanderson

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0114 266 7141

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