Date
07 Jan 2021Category
Tax, VAT & Indirect TaxAs the new year begins, it’s that time of year we start thinking about New Year’s Resolutions, so why not start with our three “tax top tips” for business owners and individuals.
Start the year the right way, with our top tips that will get you on the right track for a successful 2021.
Business Owners |
|
1Brexit |
The Brexit transition period has now ended and we recommend that you now consider your future exposure. From a customs perspective: INCOTERMS (shipping terms)
Commodity codes
Engage a customs agent
The payment of any UK import duties
|
2IR35 Changes – Be prepared |
Identify who your ‘Off-payroll’ workers are in preparation for IR35
Undertake IR35 status assessments ahead of April 2021
Actions post determination of Status
|
3Protect your people |
January is often a key time when staff think about a change in their careers. Given the increased likelihood for individuals to want to transition to a more flexible and home-based work pattern, does this remove certain geographical barriers to attracting talent? We are seeing more and more businesses think long and hard on how they may introduce incentive plans to retain their best talent, this may include straight forward cash bonus plans or more complex equity based schemes, which in some cases due to lower business valuations are increasingly popular. What are you going to do to protect your people? If you would like more information on how you may be able to achieve this, please get in touch. |
Individuals |
|
1Submit your tax return by 31 January 2021 |
The festive period is typically a time when a lot of busy business owners finalise their tax returns, if you have not done yours yet, or you need some additional support, please contact us or file without delay. |
2Focus on your tax liability |
It may be too late to take action for the tax payment due on 31 January 2021, however you could still take action to spread your tax liabilities over 12 months or in deed consider some planning ideas for next year’s tax liability – Click here to find out more. |
3Protect your wealth |
You have worked incredibly hard, taken business risks, house on the line and lots of sleepless nights. We could see a number of changes to the tax landscape this year, which could include an alignment of the CGT rates to income rates, the introduction of an one-time wealth tax, and the removal of some key tax reliefs. So it is important to ensure that you have the most effective business structure, that you have at least considered your options and perhaps started to think about succession planning. There may be areas that you have been putting off for later, however, now may well be the best time to take action, to potentially lock in the current tax rates which would provide you certainty on the tax position and may well protect your wealth. If you would like more information on how many be able to achieve this, please get in touch. |
As 2021 progresses we will continue our series of top tips which if you are taxed for time, will provide you with valuable insight. At Azets, we strongly believe that planning is essential to ensure that individuals and businesses are fully briefed on key changes and how they may be impacted as a result.
We also know how important it is to have certainty regarding the tax you pay and our national tax experts, based locally to you, are on hand to provide support through the taxing times that are certainly ahead of us.
For further information on the areas raised in this insight, or to discuss in more detail, please speak with your usual Azets contact or a member of our tax team.