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As previously reported a new requirement to report and pay capital gains tax (CGT) within 30 days on disposals of residential property was introduced in April. With the COVID-19 crisis HMRC further announced a light touch approach to penalties by confirming they would not charge late filing penalties up to 31 July 2020.
This light touch is now ending, and transactions that are completed from 1 July will face the penalties if not reported in time.
You will be aware from our previous emails that the Coronavirus Job Retention Scheme (“CJRS”) is changing for furlough periods after 1 July 2020 to enable employees to work part time during their periods of furlough known as “flexible furlough”. Summarised below are some important points you need to be aware of to address each of the following questions:
Businesses that have taken advantage of the temporary VAT deferral scheme will soon need to take action on future VAT payments.
HMRC allowed businesses with VAT liabilities that were due for payment from 20 March to 30 June 2020 to defer those payments until 31 March 2021. This was claimed by simply not making payment, and many businesses will have done this by cancelling the direct debit with their bank. Businesses will need to take action to reinstate their direct debit instructions for any VAT payments that fall due on or after 1 July 2020. Due to the COVID-19 pandemic, many companies have had to change working practices that have seen many operate remotely with an increased reliance on communication methods such as email due to being apart from co-workers and clients.
Cyber criminals have attempted to exploit this with widespread knowledge of the pandemic and working from home practices in order to disguise themselves as genuine contacts. These emails can look genuine with them using logos or branding specific to an organisation. HMRC have announced that the changes to VAT affecting the construction industry are to be delayed until 1 March 2021. The introduction of a reverse charge system was originally to begin in October 2019, and just one month prior to that they announced a new start date of October 2020. The COVID-19 crisis has caused this further delay. The announcement can be seen on the government website here.
HMRC have announced that the changes to VAT affecting the construction industry are to be delayed until 1 March 2021. The introduction of a reverse charge system was originally to begin in October 2019, and just one month prior to that they announced a new start date of October 2020. The government has decided to delay the start due to the impact on the industry of the COVID-19 crisis.
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