HMRC have recently updated their guidance on Decentralised Finance (DeFi) and the tax implications surrounding this area of cryptocurrency.
What is DeFi?
DeFi is an umbrella term used to provide products akin to traditional financial services through Distributed Ledger Technology. DeFi platforms can provide services such as Decentralised exchanges (DEXs), savings, lending and derivatives.
DeFi lending platforms facilitate lending between unconnected lenders and borrowers. A lender could then be provided with a return on their loan, allowing cryptoassets to provide a source of income in addition to any increase in the capital value of the cryptoassets.
Read more here: https://www.burgesshodgson.co.uk/wp-content/uploads/defi.pdfRead More
The Partners have been discussing the ways to move the firm forward and have agreed on a new staff development structure. This will ensure the continued growth and advancement within Burgess Hodgson as well as provide an opportunity for colleagues to have a clear path for progression and professional development.
As part of the development, we are pleased to announce that Rachel Pottle and Greig Gaskill have been promoted to Directors. They have shown outstanding leadership qualities as Associates.Read More
Huge congratulations to Oliver Laughton on becoming an Associate at Burgess Hodgson! Oliver has been at Burgess Hodgson since 2012, working directly for the senior partner, Steve Sutton. Whilst managing a diverse portfolio of clients and a busy team of trainee accountants, Ollie assists with annual compliance, providing diligent tax advice to owner managed businesses along the way. Ollie feels that building strong relationships with his clients is key to advising. Ollie also has a special interest in inheritance tax planning and advice.Read More
The deadline to file and pay remains 31 January 2022. The penalty waivers will however mean that:
- No late filing penalty will be issued if filing online by 28 February
- No late payment penalty will be issued if tax due is paid in full, or a Time to Pay arrangement is set up, by 1 April
Interest will remain payable from 1 February.
The existing Time to Pay service allows any individual or business who needs it, the option to arrange to spread tax payments over time.
Self Assessment taxpayers with up to £30,000 of liability can do this online by following the below link but only once they have filed their return.
For larger liabilities clients will need to speak to HMRC directly on 0300 200 3822.
As a reminder the 2020/21 tax return must include payments under
- Self-Employment Income Support Scheme
- Coronavirus Job Retention Scheme
Burgess Hodgson recommend that wherever possible the returns should be filed by 31 January.
For more information or advice please contact Burgess Hodgson via firstname.lastname@example.orgRead More
The next round comes in from 1 April this year, which will require all VAT registered businesses, regardless of turnover, to submit their VAT returns via MTD compliant software.
Who is likely to be affected
These changes will apply to the approximately 1.1m VAT registered businesses with taxable turnover below the current VAT threshold that are not currently required to operate Making Tax Digital (MTD) for their VAT reporting and record keeping obligations.
General description of the measure
MTD and its extension forms a crucial building block in the government’s 10-year strategy to make the tax system more resilient and effective, to boost business productivity, and support taxpayers.
These changes extend MTD requirements to smaller VAT businesses from April 2022. They build on the successful introduction in April 2019 of MTD for those VAT businesses with taxable turnover above the VAT threshold.
There is a growing body of evidence, from research and insights from taxpayers within MTD for VAT, which demonstrates that MTD is securing a range of benefits for those that use it in practice.
These benefits include reducing or eliminating paper-based or manual processes through use of software and an integrated approach to business administration and tax, allowing for greater accuracy in tax returns. This reduces the time businesses spend on administration, providing businesses more time to maximise business opportunities, productivity and profitability. MTD’s intention is that, for the majority of businesses, tax will be made easier to get right and harder to get wrong.
About a quarter of VAT registered businesses below the VAT threshold have voluntarily chosen to join MTD, demonstrating that a modern, digital approach to managing tax can work for businesses of every size.
MTD aims to tackle that part of the tax gap caused by error and failure to take reasonable care, by removing opportunities to make certain types of mistakes in preparing and submitting tax returns.
Under MTD, businesses must keep digital records and use third-party software to submit their tax returns to HMRC. Under the changes, those who do not already keep their records digitally will need to start doing so for their VAT obligations. The process of then sending returns to HMRC will become more straightforward, with their returns generated and sent directly from the software they are using to keep their records.
The software these businesses use must be capable of receiving information from HMRC digitally via HMRC’s Application Programming Interface (API) platform.
For more information or advice, please contact Burgess Hodgson via email@example.comRead More
Last updated on August 18th, 2021 at 01:46 pm
David joined Burgess Hodgson as a Junior Tax trainee in 2019 having achieved a 1st class degree in Psychology from Leeds University.
David helps manage a portfolio of clients including sole traders and High Net Worth Individuals, dealing with both personal and corporation tax returns. He also assists the tax Partners with company valuations and tax compliance in respect of employee share schemes and investments in the Enterprise Investment Scheme.
We applaud success within the firm especially during these challenging times and huge congratulations go to David who passed his Advanced Technical paper with the highest mark in the UK and has been awarded by the Chartered Institution of Taxation the ‘Ronald Ison Medal’.
The Senior Partner, Steve Sutton was joined with other Partners, Ken Jones, Fiona Wilkes and Mike Horne on Friday and presented David with a cheque in acknowledgement of this impressive achievement.Read More
HMRC have announced they will be contacting eligible taxpayers, either by email or through the online service, to notify them that they can apply for the fifth Self-Employment Income Support Scheme (SEISS) grant to cover the period 1 May 2021 – 30 September 2021.
Applications for the grant are open now, with the deadline for claims being 30 September 2021. Applications will be different from previous grants as the level of support depends on the reduction in turnover between 2020/21 and 2019/20.
For further information please see the following link: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Currently no announcements concerning a sixth grant have been made, so the fifth grant may be the final one available.
Burgess Hodgson will be contacting clients that we believe are eligible for the fifth grant, and can review your turnover calculations. If you have any queries in the meantime please contact your usual tax adviser or email firstname.lastname@example.orgRead More
Posted: 17 November 2020
The Treasury Direction setting out the law on the extension of the Furlough scheme into 2021 has been published. This can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/935146/201112_CJRS_DIRECTION_No_5___CJRS_extension_1_Nov_-_31_Jan__SIGNED.pdfRead More