VAT News
If you’re a limited company contractor who chose to defer your VAT payment as a result of Coronavirus, you must now pay the outstanding VAT on or before 31 March 2021. If you cancelled your Direct Debit, you’ll need to set up a new Direct Debit arrangement in time for the first payment after 30 June. After this date, you’ll need to submit VAT returns as normal.
You can pay or make payments towards your deferred VAT now or at any time up to 31 March 2021. If you need more help to pay your VAT, you may be eligible to get support with your tax affairs through HMRC’s Time To Pay (TTP) service. This allows you to pay off your debt by instalments over a period of time. For more information, see here.
IR35 News
Last week, a final push by MPs to get the roll-out date for the IR35 private sector reforms delayed until 2023 failed. The late-stage amendment to the Finance Bill 2019-2021 received insufficient support, which means that the changes will now be rolled out as planned on 6 April 2021 with no further delays.
The changes will see the responsibility for making IR35 determinations transfer from the contractor to the organisation who is hiring them. There’s concern that this will place additional pressure on businesses as they are attempting to recover from the Corona pandemic. Issues with the legislation have already led to many non-compliant determinations as businesses seek to reduce liability. Contractors and businesses are now being advised to make preparations for the reforms going ahead.
Loan Charge Update
Another Finance Bill amendment, supported by 50 MPs from across the House, sought to reduce the scope of the Loan Charge. The amendment sought to tighten up HMRC’s policy so that it would only apply before the 2015-16 tax year. However, the amendment was denied a vote.
This adds additional pressure for those facing Loan Charge repayments, who may also have lost work because of the Covid situation. Tax Minister Jesse Norman said HMRC will take a proportionate and reasonable approach to anyone facing the Loan Charge who is unable to file their return by 30 September.
If you're looking for a new role, check out the latest listings on offer as hiring picks up speed this month. If you’re starting a contracting role, Umbrella Exchange have access to a wide range of hassle-free services that can help you with setting up a limited company or finding the right umbrella company for you. To talk to a member of our team, call: 0203 393 3881