Tax Tips & News - Budget Special

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08/03/2021

March Tax Tips & News - Budget Special

Welcome to Davies Tracey’s Tax Tips & News - Budget Special, designed to keep you one step ahead of the taxman. We are committed to ensuring none of our clients pay a penny more in tax than is necessary and as such, this month’s news and tips include:

Click a link above to read an article, or skip straight to our regular content:

The 2021 Budget took place yesterday and so of course this newsletter also includes:

Chancellor Rishi Sunak’s headlines announcements were that, as a result of the Covid-19 crisis, GDP shrank by 9.9% in 2020 – the largest annual fall in 300 years according to a Bank of England report (albeit lower than the 11.3% forecasted in November).

He also explained that in terms of annual borrowing, the figure for 2020/21 reached 16.9% of GDP (£355 billion), which is the highest level of peacetime borrowing on record. This is forecast to fall to 10.3% (£234 billion) in 2021/22, and to 2.8% (£74 billion) by 2024/25. Underlying national debt is forecast to peak at 97.1% for GDP in 2023/24 before starting to fall in 2024/25.

The Budget also saw a number of Covid-19 support measures extended, detailed of the next phase of support announced following the government publishing its roadmap out of lockdown in February, and included several positive Tees Valley-related announcements.

If after reading our summary you still have any questions regarding the budget, or indeed on any topics covered in this newsletter, please give us a call.

We’re here to help – on 01642 606003.

Latest news round up
There have been relatively few announcements related to Covid-19 support this month. The only real announcement of note was an amendment to the terms of the Pay As You Grow scheme for repaying Bounce Back loans. Under the revised rules, a borrower will be Read More...
 
Import One-Stop Shop
One of the consequences of Brexit is that exports of goods from GB to customers based in the EU are now zero-rated as far as UK VAT is concerned. However, if the consignment is valued at more than €22 there will be an import VAT liability at the other end Read More...
 
Reporting Covid-19 support payments
A business receiving support payments for Covid-19 needs to ensure the receipt is correctly recorded as taxable income for corporation tax purposes. For unincorporated businesses using the cash basis, this is straightforward enough. However, where the acc Read More...
 
Venture Capital Trusts - are the dividends exempt?
When preparing a tax return, it is easy to look at a dividend statement from a VCT and think “It’s exempt” and simply file it away. Of course, in most cases this is probably sufficient. However, sometimes a little more care is needed. Dividend exemptio Read More...
 
March questions and answers
I am looking at buying a rundown pub/restaurant ready for this summer, assuming it will be allowed to open. I need to spend approximately £100,000 on building works. Can I register for VAT straightaway or do I need to wait until I open? Yes, you can reg Read More...
 
March Key tax dates
1 - Due date for payment of Corporation Tax for accounting periods ending 31 May 2020. 1 – New rules on domestic reverse charge for the construction industry take effect. 7 - Electronic VAT return and payment due for quarter ended 31 January 2020. 15 – Read More...
 
March 2021 Budget
The 2021 Budget took place on 3 March 2021. Chancellor Rishi Sunak announced that, as a result of the Covid-19 crisis, GDP shrank by 9.9% in 2020, the largest annual fall in 300 years according to a Bank of England report, albeit lower than the 11.3% fore Read More...
 
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