Month: January 2021

The end of the calendar year is a popular accounting date for many businesses, but for those of us with a year-end accounting date of 31 March 2020, reviewing your management accounts for the nine months to the end of December 2020 can have real benefits. For example:

• If you are self-employed and for the nine months you are predicting lower profits for 2020-21 (compared to 2019-20) it may be possible to reduce your self-assessment payment on account due at the end of January 2021. Many self-employed persons adversely affected by COVID disruption will be in this position. Contact us so we can file an appropriate election.
• If you are self-employed and your profits are predicted to be higher for 2020-21, then you may have underpaid your self-assessment tax for 2020-21. Again, contact us so we can estimate this possible underpayment and work out a realistic savings plan to accumulate the necessary funds.
• When working out your taxable profits for 2020-21, don’t forget to include any Self-Employed Income Support received or other COVID related grants.
• Use the nine months figures to update your financial budgets for 2020-21. We recommend that all businesses undertake this task as it will identify high points and low points in your cash flow and solvency. Please call if you need help with this task. If you have never created a budget before we can help you crunch the necessary numbers.

Needless to say, if you are concerned by the historical results to 31 December 2020 or the outlook for 2021, let’s get together and see how best to meet these challenges. With the external pressures that EU disengagement may pose for your business this is not a time for wishful thinking. Be prepared.

1 January 2021 – Due date for Corporation Tax due for the year ended 31 March 2020.

19 January 2021 – PAYE and NIC deductions due for month ended 5 January 2021. (If you pay your tax electronically the due date is 22 January 2021)

19 January 2021 – Filing deadline for the CIS300 monthly return for the month ended 5 January 2021.

19 January 2021 – CIS tax deducted for the month ended 5 January 2021 is payable by today.

31 January 2021 – Last day to file 2019-20 self-assessment tax returns online.

31 January 2021 – Balance of self-assessment tax owing for 2019-20 due to be settled on or before today unless you have elected to extend this deadline by formal agreement with HMRC. Also due is any first payment on account for 2020-21.

1 February 2021 – Due date for Corporation Tax payable for the year ended 30 April 2020.

19 February 2021 – PAYE and NIC deductions due for month ended 5 February 2021. (If you pay your tax electronically the due date is 22 February 2021)

19 February 2021 – Filing deadline for the CIS300 monthly return for the month ended 5 February 2021.

19 February 2021 – CIS tax deducted for the month ended 5 February 2021 is payable by today.

From the beginning of this month the Brexit transition period has ended. Negotiations to secure a trade agreement between the UK and the EU from 1 January 2021, have completed and we have a deal.

Readers who import or export goods from or to the EU will now need to face the following challenges in addition to those posed by COVID-19:

• Exchange of goods between the UK and the EU should continue with no tariffs, but importers and exporters will need to deal with additional customs regulations and consequent red-tape.
• Delays in supply lines as transport has to deal with border checks and UK ports deal with congestion caused by additional red-tape.
• Exporters to the EU will also need to comply with new regulations as will their EU customers who may also need a license to import goods from the UK.
• Exporters will also need to factor in transport delays if their goods are sent by road.

The major upside to this outcome is that we now have certainty. Affected businesses would be wise to revise their business plans to accommodate these extra costs due to possible delays and customs charges.

We can help. Please call if you need help or advice.