• Date

    03 Dec 2020
  • Category

    Tax, Private Client, VAT & Indirect Tax, Capital Allowances, Corporate Tax

Tax Top Tips - Three “must do” things…

This month we have highlighted three “tax top tips” business owners and individuals should consider and implement over the next four weeks. Though you may be taxed for time, these top tips will help you to get ahead and succeed.

Business Owners

 

1

End of the transition period - are you ready?

From 1st January 2021, the UK will cease to operate within EU. Import VAT and Customs Duty will be incurred when goods come into the UK or are moved to EU customers. Changes in reporting requirements will be placed on cross-border supplies of goods.  UK businesses could have to register for VAT in EU countries Non-UK businesses may have to register in the UK.

EORI

This is essential if you want to continue to trade with your international customers including the EU after 1/1/2021. The terms of your supply chain will dictate whether you will need an EORI number with a GB prefix, an EU prefix or an XI prefix (when moving goods from Northern Ireland). Have you got yours? 

Action to be taken ASAP

  • Confirm the need to register for VAT in other countries. 
  • Review sale/delivery terms - these determine who is responsible for import VAT and customs duty.
  • Import VAT will only be recoverable by importers – it is important that the correct person is recorded as importer.
  • Customs duty will be an additional cost – make sure that goods are classified correctly, and the correct rate of duty is applied. 
  • Review supplies made digitally, supply and install arrangements and land related supplies to ensure VAT reporting obligations are met in the EU and UK.

2

Job Retention Scheme

 

A lot of businesses have made claims and we are now seeing an increased level of HMRC activity, and they are now making enquires on claims that have been made. Have you reviewed your claims to ensure they are correct? If you have received an enquiry from HMRC we are able to support you in responding.

3

Christmas Parties

 

Have you organised yours? It is likely that this year will be different, and it is important to ensure that you are aware of the tax rules that are appropriate. Read our latest article here.



 

Individuals

 

1

Have you reviewed your will?

This is such a key document and everyone should have one.  You should review your Will on a regular basis to ensure your wishes are met when it comes to your assets when you have passed. 

2

Financial Health Check

 

This has been a strange and difficult year, however there is renewed optimism for 2021.  As we approach the end of the year have you considered your plans for 2021? There are likely to be some significant tax changes in 2021 and now may be the ideal time to review assets and consider the appropriate estate planning. This should be done as part of wider succession plan. Our experts are busy supporting various families, structure their financial affairs so that they can pass on assets in a tax efficient manner. Have you done this?

3

Investment
Property

 

Have you sold or are you about to sell an investment property? If so, are you aware that in most cases you need to report the capital gain and pay CGT due within 30 days of completion, and that a penalty applies on late filing? Our CGT experts can guide you through the process.



 

Over the next few months, we 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.

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