John’s Autumn Blog 2020

Dear All

I am writing this blog in October as I wanted to address the issue of Tax Returns and Tax Liabilities due for payment in January 2021.

However, firstly, I send my greetings and trust all of you are well and coping in these extraordinary times. Thankfully, in our geographical area, we are still in tier 1 and hopefully remain so, but there is the likelihood we may go up a grade at some point if that is the right expression. Currently, we man the office with two-thirds of the staff each day and the other third working from home although, if the virus becomes more prevalent, we may have to work in two teams. One team in one day and another team another day just to avoid any spread of the infection. However, there will always be someone here if you ring the doorbell or if you telephone.

As always, we will try and respond to your emails as quickly as we can.

My Secretary did have Covid we believe, right back at the beginning of the pandemic in March, and currently, Vanessa is off having tested positive for the virus. Not knowing the source of the infection.

I continue to pray for my clients each day and will continue to do so that you will be protected and helped through this time and that your businesses will be preserved, albeit in difficult trading circumstances. If you need particular help, please do not hesitate to contact me, Colin or one of the team and we will do our best to help you. I just rest in the promise that God will never leave us or forsake us. I know the road may be rough and steep, but his everlasting arms do carry us and we will come out of this deep dark valley at some point and into light.

Staff

Just some staff notes. We are pleased Lydia has passed the next stage of her examinations and is halfway to becoming a Chartered Accountant.

Tax

At the present time, all Tax Returns for the year ending 5th April 2020 still have to be filed by 31st January 2021. I have heard nothing to the contrary and do not expect HM Revenue & Customs to change this date. If this applies to you it is important you send me your Tax Return and accounts papers for the year to 31st March 2020 as soon as possible. Please do not delay. HMRC will want to know what tax is owed but they are offering a means of deferring tax liabilities and paying by instalments.

Back in the summer, you were offered the opportunity to defer your 2nd payment on account for 2019/20, due on 31st July 2020, to 31st January 2021. This now applied to all taxpayers due to make self-assessment payments, including Landlords.

On 24th September 2020, as part of the Winter Economy plan, the Government announced that taxpayers with less than £30,000 of self-assessment liabilities, due on 31st January 2021, whether deferred from July 2020 or otherwise due by 31st January 2021 under self-assessment, could make payment in 12 month instalments under a Time To Pay arrangement. This means that these payments can be spread with the last payment due by January 2022.

If you are unable to pay in January 2021 then arrangements have to be made with HMRC under a Time To Pay arrangements. Therefore, it is quite important that you begin to let us have all the necessary accounts and tax information we need so that we can complete your Tax Return at 5th April 2020 and advise you of what tax is due so you have sufficient time to make arrangements for payment by instalments, if you cannot pay in full by 31st January 2021.

Taxpayers using self-service time to pay will be required to pay interest on tax owed on 1st February 2021. We are also aware that businesses will certainly have a drop in their profitability in the year 2020/21 and therefore, it will be possible to reduce the payments on account due to HMRC in respect of the 2020/21 tax year.

We will be sending out details of the new announcement from the Chancellor re the Job Support Scheme and self-employed grants this week.

Take care.

John Caladine, 
Caladine Ltd