Important tax deadline approaching fast
With all the focus on the forthcoming Budget this month, it is easy to forget that 31 October is a key tax deadline in the annual calendar. What is it, and what are the consequences of missing it?
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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?
The deadline for filing the annual tax return is 31 January. Everyone knows that - after all, that's the month all the reminder adverts start appearing in the media. However, the 31 January deadline only applies to returns that are submitted electronically. Unlike companies, individuals can still fill in a paper return and submit it to HMRC. The only problem is that the corresponding deadline is three months earlier, i.e. 31 October. If this is missed, a £100 penalty will be applied. Of course, this can be avoided by submitting an electronic return before 31 January, but for some people this isn't practical. For example, they may not have access to a computer.
In some circumstances, a return is incapable of being accepted electronically due to HMRC's system. In these instances a paper return is the only option, and an extended deadline of 31 January applies. A late filing penalty would initially be charged, but known issues will be accepted as a reasonable excuse upon appeal. A list of current issues is availaible for 2020/21.
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