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Tax Tips

Scott Greig

Scott Greig

Partner

“With the VAT rate returning to the standard 20% from 1 April 2022, leisure and hospitality businesses should be taking advantage of the current reduced rate to boost cashflow or secure more bookings now.”

David Morrison

David Morrison

Head of EQ Taxation

“If you are due to make payments on account towards your 2020/21 tax liability or deferred your second payment on account for 2019/20, and have not paid this subsequently, this forms part of your 31 January 2022 tax payment.

However, if you are unable to pay your tax liabilities before the 31 January deadline, contact HMRC to request a payment arrangement.”

Liz Goldie

Liz Goldie

Manager

“Talk with your accountant about your 31 January 2022 liability as your tax payments could be overstated in some circumstances.

Whilst tax repayments are great to receive, it is often an indicator that you have overpaid tax in the first instance.”

Rachel Bell

Rachel Bell

Partner

“Remember that the deadline for filing your 2020-21 Self Assessment tax return online is 31 January 2022. Any balancing tax due for 2020/21 together with first payments on account for 2021/22 are due on the same date.

If you do not meet these deadlines, HMRC will automatically charge late filing penalties and interest. If you are unable to pay your tax liabilities on time it may be possible to agree a Time to Pay arrangement with HMRC.”

Graeme Davidson

Graeme Davidson

Partner

“This Christmas, remember that employers can give their employees a tax-free gift that costs £50 or less, as long as it meets the criteria set out by HMRC.

Known as a ‘trivial benefit’, it is a great way to show your employees how much you value and appreciate them, especially at Christmas.”

Mark Wilken

Mark Wilken

Partner

“Many people have both their own business and an employment. In these situations it is not uncommon for the tax payer to overpay on their National Insurance (NI).

Contact your tax adviser to determine whether you might reclaim some NI from HMRC.”

Sandi Grubb

Sandi Grubb

Manager

“VAT registration is only compulsory when your taxable turnover hits £85,000. However, in some cases, it may be beneficial for your business to register voluntarily before you hit the threshold.

Voluntary VAT registration allows you to reclaim VAT from the last 4 years on goods (provided you still have them), and 6 months for services, provided you have kept VAT invoices. In addition, being VAT registered can boost your business profile.”

David Morrison

David Morrison

Head of EQ Taxation

“Many successful businesses use surplus profits to invest in property, the stock market or other investments of their choice. That mix of trade and investment can inadvertently be a tax problem but not one which cannot be solved.

Our tip is to review your set up to ensure you and your business does not fall into this trap.”

Robert Young

Robert Young

Partner

“What’s the tipping point for incorporating a property portfolio?

The perceived tax saving when comparing Corporation Tax to higher rate Income Tax, and the flexibility of shareholdings for companies may be offset by the costs of incorporation such as professional fees, refinancing costs, Land & Buildings Transactions Tax (LBTT) and Capital Gains Tax (CGT). The trick is to match the savings against the costs to determine if it’s worth it.”

Dougie Rae

Dougie Rae

Partner

“Employee Ownership continues to gather momentum. This can be an excellent way in which a business can be transferred to a valuable workforce, tax efficiently for the seller, who can also remain as an employee and director, though they must give up control.

This is an option to consider carefully and our Taxperts can help you decide if it’s the right route for you.”

Download our EQ app and keep up to date with tax news, changes and have access to our EQ Portal, tax calculators and key tax dates at your fingertips. Click on the relevant button on your device to download our free app.

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