Don’t forget to declare coronavirus grants on tax returns
With less than 100 days to go until the deadline for the 2021/22 tax return, HMRC is reminding self-employed taxpayers to ensure coronavirus payments are included. What do you need to declare?
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Accounting for VAT if there is no cash payment
Your business has submitted repayment returns for the last two quarters and you are concerned that you might have underpaid output tax on some supplies where no money has changed hands. Are your concerns justified?
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Treatment of distributions under review
The government has launched a consultation on modernising the tax treatment of distributions and repayments of capital by companies. The proposals could affect the distinction between dividends taxed as income and capital payments subject to CGT. What changes are being considered?
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Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
It’s over a year since the final tranche of payments under the self-employment income support scheme (SEISS) closed for application. As a result, it’s easy to overlook them when completing your tax return. Under the rules, you need to declare the payments received in the tax year, as was the case for the 2020/21 returns. So, which payments should you include?
The grants paid during 2021/22 were the fourth and fifth grants. The SEISS rules for these grants took account of profit figures from 2019/20, whereas the first three tranches didn’t. That means that those who were new to self-employment (including partnerships) in 2019/20 may have received the fourth tranche as their first payment under the SEISS. If that applies to you, you won’t have reported SEISS payments on your return previously, so make sure you read the guidance carefully
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