Welcome to the June 2021 Newsletter from Certax Accounting
HMRC has reminded businesses that deferred VAT payments during the pandemic that the online VAT Deferral New Payment Scheme, which allows repayment in monthly instalments, will close in June.
Meanwhile, many businesses are seeking to adopt so-called 'hybrid' working practices once the coronavirus (COVID-19) restrictions are fully lifted, the Institute of Directors (IoD) has stated. Responses to an IoD survey suggested that hybrid working could provide the optimum balance for businesses as the economy begins to recover from the pandemic.
HMRC's VAT Deferral New Payment Scheme to close in June
Businesses that deferred VAT payments last year have less than a month left to join online and pay in monthly instalments under the VAT Deferral New Payment Scheme, HMRC has confirmed.
The online portal for the new payment scheme will close on 21 June 2021.
Over half a million businesses deferred £34 billion in VAT payments due between March and June 2020 under the VAT Payment Deferral Scheme. Businesses had until 31 March 2021 to pay this deferred VAT or, if they could not afford to do so, they could go online from 23 February to set up a new payment scheme and pay by monthly instalments to spread the cost.
Commenting on the scheme, Jim Harra, HMRC's Chief Executive, said: 'Businesses that deferred paying their VAT last spring have until 21 June to join the VAT Deferral New Payment Scheme online. They should act now to avoid missing out on this opportunity to spread payment of their deferred VAT across monthly, interest-free instalments.
'The new payment scheme is part of the government package of support worth over £350 billion to help protect millions of jobs and businesses during the pandemic and as we emerge on the path to recovery.
'HMRC will continue to do all we can to help businesses as they re-open and re-build.'
Businesses planning to adopt 'hybrid' working after easing of COVID restrictions
A survey carried out by the Institute of Directors (IoD) has found that businesses are planning to adopt so-called 'hybrid' working once the COVID-19 lockdown restrictions are fully lifted.
The survey of 600 business leaders revealed that 63% of firms intend to shift towards one to four days of remote working per week. One in ten businesses are planning to permit employees to work from home entirely, whilst one in five are not planning to introduce any form of remote working.
Four in ten business leaders feel that remote working is more productive for their firm, the survey found.
'As the economy re-opens, business leaders are grappling with the best working models going forward,' said Joe Fitzsimons, Senior Policy Adviser at the IoD.
'The flexibility of remote working has improved work-life balance for employees and cut down commuting expenses. In many cases it has also boosted inclusivity and hiring from different parts of the country.'
The IoD has suggested that a hybrid working model is likely to 'provide the optimum balance for business leaders as the economy re-opens'.
ESSENTIAL TAX DATES FOR JUNE
1 June New Advisory Fuel Rates (AFR) for company car users apply from today.
19 June PAYE, Student loan and CIS deductions are due for the month to 5 June 2021.
30 June End of CT61 quarterly period.
QUOTE OF THE MONTH
'As the end of the re-opening roadmap hoves into view, manufacturers need clear guidance from government on the state of play beyond June, so they can plan, prepare and strengthen their supply chains - ensuring they can continue to operate safely and profitably.'
Alpesh Paleja, Lead Economist at the Confederation of British Industry (CBI), commenting on the CBI's latest business confidence survey, which found that optimism amongst SME manufacturers rose significantly in the quarter to April 2021.
IN THE NEWS
NIC reliefs set for Freeports
Freeport operators will be able to take advantage of a zero rate of secondary national insurance contributions (NICs) for employees, the government has announced.
Effectiveness of OTS set to be reviewed by Treasury
The Treasury has launched a review into the effectiveness of the Office of Tax Simplification (OTS), the independent body responsible for helping to make the UK tax system simpler and easier to interact with for taxpayers.
Data finds HMRC received 91,000 calls to report fraud in first months of pandemic
Data published by insurer PfP has revealed that HMRC received 91,000 calls to report instances of fraud in the first nine months of the COVID-19 pandemic.
UK economy set to grow rapidly once COVID restrictions are relaxed
In its latest report, the Bank of England (BoE) has predicted that the UK economy will grow at its fastest rate in more than 70 years in 2021 as COVID-19 lockdown restrictions are eased.
Optimism amongst SME manufacturers has risen significantly, survey suggests
A survey carried out by the Confederation of British Industry (CBI) has revealed that optimism amongst small and medium-sized enterprise (SME) manufacturers rose considerably in the quarter to April 2021.