HMRC have recently announced that provided 2020/21 tax returns are received by the end of February, the late filing penalty will not be applied. Filing late will, however, extend the period during which HMRC may open an enquiry into your return.
HMRC are urging businesses to look out for the use of mini-umbrella companies (MUCs) to pay contractors supplying their labour via agencies and other intermediaries.
Currently only VAT registered businesses making taxable supplies in excess of the £85,000 VAT registration threshold are mandated to comply with Making Tax Digital rules.
The new “reverse charge” system of VAT accounting affects sub-contractors supplying their services to main contractors in the construction sector.
Value added tax may be one of the least glamorous types of tax, but there have been a few recent announcements that certainly make it a little more interesting.