Martin Aitken & Co Ltd News & Developments

We’re now in the year of the Tiger, which symbolises resilience and strength. Both of which may be required after Wednesday 6^th April ushers in the new 2022/23 tax year.

New years are normally a cause – or excuse – for celebration, even if the pandemic has changed that in recent times. From a personal financial standpoint, this upcoming tax year may well offer more concern than celebration.

The existing penalty regime for VAT returns has the advantage of simplicity, but it’s something of a blunt instrument.

The new system coming in for return periods beginning on or after 1^st April 2022 will be fairer, but some businesses will find themselves caught up in a complex web of escalating penalties.

Last year, HMRC offered businesses the opportunity to defer VAT payments falling due between 20 March 2020 and 30 June 2020, until 30 June 2021 (originally 31 March 2021, but subsequently extended). 

As this deadline is now approaching, businesses who took advantage of the deferral scheme should act now by selecting one of the three available options below:

From 1 March 2021, the way that VAT is accounted for on some subcontracted construction supplies will change.

Under the historic rules (pre-1 March), a VAT Registered subcontractor would invoice their customer for work carried out and apply VAT to this, which the customer would pay to the subcontractor in full.

It certainly has been overshadowed this year, but yes Brexit negotiations are still ongoing and with only less than a month to go, what can we expect?

The UK Prime Minister, Boris Johnson, UK Chief negotiator David Frost and EU negotiator Michel Barnier continue to offer differing messages to the public about Brexit, some are positive, some ambivalent and occasionally negative remarks about the negotiations.

In his spending review on 25th November Rishi Sunak said the “economic emergency” caused by COVID-19 has only just begun, as he warned the virus would mean lasting damage to growth and jobs.

Official forecasts now predict the biggest economic decline in 300 years.

Many of the queries we deal with relate to whether VAT is due on the sale, purchase or rental of a property and the answer to this question is usually dependent on whether there is an “Option to Tax” on the property.