The Budget came through on 3 March 2021. None of the speculated tax changes, e.g. raising CGT came to pass, although the corporation tax’s primary rate will increase in 2023. Several allowances, such as the personal allowance and CGT annual exempt amount, has been frozen until April 2026. More information about the Budget announcements has been included in the Budget newsletter.
During Covid-19, measures including the details of the fourth SEISS grant have been published.
Additionally, a fifth tranche for the period from May to September will be available in the summer; this will be worth:
- 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more
- 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%
HMRC lost their appeal in the high-profile Upper Tribunal IR35 of TV presenter Kaye Adams. This was unexpected as several established hallmarks would have suggested an employment relationship. Including mutuality of obligation and the degree of control the BBC exercised were present.
The decisive factor was that Ms Adams argued that she carried on other business as an independent contractor. That company was undertaken on a similar basis to her work for the BBC.
The extent of her work with other clients seems to have been persuasive. The Tribunal commented that “The conclusion that we have reached is that, in an uncertain profession, Ms Adams had succeeded in those tax years for the time being, at least in securing a stable revenue stream that was material in the amount. If over time, Ms Adams’s other revenue streams had diminished so that the BBC work represented a greater percentage of her gross income, she might have tipped over into employment. Yet, HMRC accepted that the hypothetical contract was not of employment in the tax years 2013/14 and 2014/15.”
A business can apply:
- Has been established in the UK for at least twelve months or holds Authorised Economic Operator status
- Has met its tax or customs obligations
- Has no more than 500 employees or an annual turnover exceeding £100 million
- Imports or exports goods between GB and the EU, or moves goods between GB and Northern Ireland
- Intends to complete import or export declarations for its goods
- Requires more capability to cope with imports or exports, despite using someone else’s services to meet the declaration documents.
More information on how to apply for the grant is available here.
The Welsh government announced that it will extend the Land Transaction Tax holiday until the end of June. The 0% rate will remain at £250,000 for an extra three months before returning to £180,000 for completions on or after 1 July 2021.