Welcome to the November 2021 News Update from Prestige Business Management
November 2021 News Update – featuring additional news developments from our newsletter series. Stay informed with the latest news in business support and financial affairs.
Key Dates Coming Up
Corporation Tax Third Quarterly Instalment Payment – 14 December
For very large companies with annual taxable profits exceeding £20m (reduced if company is a member of one or more 51% groups) with an accounting period beginning on 1 April 2021
PAYE Cheque Payments – 19 December
For the month ended 5 December should reach HMRC by this date (22 December for electronic payments)
File Online CIS Return – 19 December
File online Construction industry scheme return for the month ended 5 December
Online Submission Deadline for Personal Tax Returns – 30 December
For 2020/21 where the taxpayer wishes to settle outstanding underpayments of tax of less than £3,000 as deductions through the PAYE system
Deadline for Filing Corporation Tax Return – 31 December
For accounting periods ended 31 December 2020
Businesses Prepare for Latest Customs Changes in January 2022
New changes to customs will take effect on 1 January 2022 for businesses’ imports and exports to the EU. Customs declarations on imports from the EU to the UK must be completed at the time you or your courier / freight forwarder bring them into the UK. Pre-notification will be required to import certain SPS goods, such as meat or plants, to GB from the EU. You will need to register for the relevant IT systems for animal and plant products to ensure your business is prepared for prenotification requirements from 1 January 2022. If you sell goods to the EU, or buy goods from the EU and bring them into the UK, and they meet the rules of origin requirements, you will be able to use preferential tariffs. To benefit from the preferential tariffs, you must have proof that goods you import into the UK from the EU originate there, and any goods you export to the EU originate in the UK. Duty will be charged if you cannot prove the origin of the products you’re importing or exporting, the full rate of customs.
Omricon Christmas ‘Pingdemic’ Fears
Business owners fear shaky trading patterns this Christmas due to the Ann cement of a new variant of the virus. New measures announced on Saturday. The hospitality sector is showing nervousness about the latest instructions. The phones light up with cancellations whenever there is a new government statement. However businesses are hoping for a good Christmas 2021 to boost fragile trading conditions. Their fears are mainly driven by the potential of new measures to exacerbate the already difficult staff shortages. Retailers are already reporting nervousness in their consumers behaviour and a lower than hoped for footfall. So far the government has mandated face coverings must be worn on public transport and shops in England in an effort to slow the spread of the Omicron coronavirus variant. People arriving in the UK from abroad will now also have to take a PCR test and self-isolate until they receive a negative result. It comes after 14 cases of the new variant were detected in the UK.
Click our blogs to read more and follow us for updates and breaking news
MTD for ITSA 2024 Confirmed Start Date – 29th November 2021
The government has recently confirmed that Making Tax Digital (MTD) will apply to income tax self assessment (ITSA) from 6th April 2024. This includes all unincorporated businesses. This applies to sole traders, partnerships and landlords, who file their taxes via self assessment, and are earning over £10,000. On 23 September parliament legislated this new start date for MTD for ITSA, which was postponed by a year. This latest clarification means that the base year for testing MTD for ITSA will now be 2022/23. The figures for which will not be distorted by Covid-related business support grants. Which means this first year of MTD for ITSA will be more representative of typical trading conditions for most businesses. Find out more here.
Why Upskill Your Workforce? – 25th November 2021
Business leaders are well aware of the value of a highly skilled workforce. We are seeing a shift in some industries to ‘remote hiring’ to hunt out top-their talent and shifting to remote work and accelerating digital transformation efforts. However these agile processes can only take the business so far. Organisations that proactively resource upskilling and reskilling their own people see a wealth of benefits from growth to great job satisfaction. Upskilling and reskilling can also deliver noticeable boosts in productivity for organisations. It’s a myth that training up staff will see them leaving the business for higher plains. If you upskill your workforce effectively, you will in fact inspire loyalty from your trainees and hopefully a strong and productive team working as well. Here we look at the value of existing staff members and how to grow your business by upskilling the talent you already have here.
How to Process Payroll – Other Costs – 16th November 2021
Staff costs are very often one of the largest costs for many businesses. Generally the costs associated with employing staff are deductible from the profits of the business. However there are some costs to bear in mind when you process payroll. Firstly business expenses must be incurred wholly and exclusively for the purposes of the business to be deductible. The cost of employing staff satisfies this requirement. These costs are mainly the wages and salaries that you process your payroll. In addition to your employees’ pay, you may also deduct national insurance contributions (NIC) and PAYE income tax deductions paid to HMRC. Employer’s NIC is also deductible. Read our guide here.
What Are Allowable Expenses? – 4th November 2021
Allowable expenses are the essential costs of running your business that are tax deductible. Any outgoings that are allowable expenses can be deducted from your taxable income, allowing you to save money and reduce your tax bill. Keeping a good tax record will help you be tax efficient by deducting all of your allowable expenses before you submit your profits to HMRC. Allowable expenses aren’t considered part of a company’s taxable profits. You therefore don’t pay tax on these expenses. Only certain costs can be claimed as allowable expenses. A good rule of thumb is to ask yourself if these are essential running costs. This includes anything that your business could not trade without. Find out more here.
Client Referral Programme
We pride ourselves in treating our loyal clients with top notch perks and services. Our client referral programme is one way that we like to give back and reward you for doing business with us. You can recommend a friend to receive, up to £100 cash reward, per referral! All you have to do is recommend us – and make sure they tell us you sent them. We’ll do the rest
November Top Tips
Christmas is fast approaching and it pays to be prepared in a dynamic economic environment. Here are our top tips for a well budgeted Christmas in 2021.
Set a budget just for Christmas
Be realistic about how much you want, and how much you can afford to spend this Christmas. Set a budget for presents, socialising, decorations and food. If you are able to look back at your spending in previous years, this could help you prioritise your spending this year. Make sure you refer to your budget and stick to it. If yiu overspend in one area, cut back in another.
Get on with the shopping
Don’t leave your shopping until the last minute. There is a real reason online orders will not arrive in time and panic buying will bust the budget. Book a grocery delivery slot early as well as these get booked up weeks in advance.
Cut out unnecessary items from your plans
There could be lots of things you could cut back on that we just buy because we see them. Extra ribbons, bows and fancy tablecloths can look tempting but aren’t essential, and maybe you already have items that you can use again.
Ask people to contribute
If you are hosting or sharing Christmas plans with others, work together to share out the jobs. This will make things easier on everyone.
Buy an artificial tree
Real trees are lovely, but getting a new one every year is costly. A good quality artificial tree will last a lot longer and save you the annual shopping trip.
If you’re part of a big group of friends or colleagues planning a Secret Santa rather than buying gifts for everyone individually. Will save money and time, for everyone and it’s a lot of fun.
Prestige Business Management Works for You
At Prestige Business Management we can help your business understand the best solutions for the success of your business. Find out what we can do for you. Call us today on 0203 773 2927.