Money Matters - May 2021 Accounting Newsletter
Posted on May 18, 2021

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With the lockdown restrictions easing and the vaccination program in full swing, things are beginning to look more positive.  It was no surprise that measures to support those affected by the pandemic dominated the March Budget, although hopefully for the last time.

The articles in this issue are:

  • Untangling VAT challenges VAT has been in the spotlight as businesses continue to struggle with the post-Brexit VAT regime.  The Covid-related deferral for VAT payments is one bright spot but there is also the delayed introduction of the new domestic reverse charge.
  • Boost to capital allowances One of Chancellor Rishi Sunak’s Budget surprises was a new super-deduction for investment in plant and machinery.
  • Budget support for business Large tax rises over the next few years, as well as extensions of the shorter-term support for people and businesses, were key themes of the March Budget.  Encouraging business growth was another aim. 
  • Off-payroll private sector changes kick off Changes for off-payroll workers in the private sector came in on 6 April after a year’s postponement because of the pandemic.  HMRC issues compliance guidance ahead of the changes but a recent Tribunal case shows up some flaws with the system.
  • Child benefit tax trap The high income child benefit charge (HICBC) was introduced in 2013 with the intention of preventing high earners from obtaining child benefit to help pay for their children.  However for 2021/22 some basic rate taxpayers will be caught for the first time as the higher rate and HICBC thresholds diverge.
  • Zooming in on wellness Fewer than half of UK businesses have a wellbeing strategy, despite the impact of restrictions and lockdowns on staff over the past year.

We hope you enjoy reading the newsletter. Please get in touch if you need help or advice on any of the topics covered.