Tax planning options for 2020-21

The 6th April marks the beginning of a new tax, and for the coming year, unprecedented challenges. As with most things in life, problems are a necessary precursor to finding solutions. We have listed below a few reminders of the issues you may want to consider as worthy of including in your 2020-21 tax planning to-do list.

We are all likely to experience a drop in earnings this year. The scale of the reduction will vary, but very few will be able to maintain their business profits or personal income at pre-COVID-19 levels. Apart from the obvious reduction in taxes paid due to the reduction, what else should we consider? We have listed below just two options that you may like to consider.

  1. If you are Self-employed

Most self-assessment tax falling due for payment in 2020 will include payments on account for 2019-20. HMRC has indicated that it will allow you to defer the 31 July 2020 payment until 31 January 2021. However, if you can demonstrate that your actual profits for 2019-20 were lower than those for 2018-19, you can formally apply to reduce your payments on account.       

Action note: to do this prepare your accounts taxed in 2019-20 (usually the year ending 31 March or 5th April 2020) as soon as you can. We can then make the necessary postponement election for you based on the results – if they show a drop in profits.

A BONUS – if you prepare accounts quickly, you can also use the figures to support any application for bank funding to see you through the COVID-19 disruption.

  1. Reduce benefit-in-kind charges

If your business is closed due to COVID-19, it is likely that directors and employees may not have been using their company cars since the lock-down started to bite in the last two months. Accordingly, if you can confirm that company cars were not made available to directors and employees in this time, and record this on your P11D return for 2019-20, then taxable benefits for 2019-20 can be reduced.

As directors and employees will have estimated benefit in kind amounts adjusted for in their tax codes for 2019-20, based on information for 2018-19, any resulting reduction could potentially create refunds of tax for 2019-20.

Action note: let us have the details of car usage asap. We can then file P11D’s sooner rather than later and apply for any overpayments in your tax paid for 2019-20.

Our advice?

When profits and income reduce this should encourage us to prepare accounts and tax returns quickly in order to challenge any overpayments of tax and NIC in previous years.

And as a bonus, the information produced will support applications to banks and other parties for financial support during this difficult time.

Please get in touch as soon as you can if you would like us to fast-track your accounts and tax return for 2019-20 and to quantify, and recover, any taxes you may have overpaid.

 

 

Losses and loans 20/07/2020

Support for SMEs 16/03/2020

Government support 16/03/2020

30 days or else 02/03/2020

We are on your side 24/02/2020

Tax-free gifts 10/02/2020

ARA (Bristol) Ltd, t/a Adams Root & Associates Ltd, 86 Shirehampton Road, Stoke Bishop, Bristol, BS9 2DR - company registered in England & Wales number 11420396

0117 968 1673

This web site is operated by Adams Root & Associates Ltd (The Firm) a company registered in England. These terms and conditions ('the Terms') govern your use of this website (the 'Website').

Please read through the Terms. If you do not agree with the Terms, do not use this Website. If you do use the Website, your conduct indicates that you agree to be bound by the Terms.

Copyright notices

Unless otherwise specified the copyright in the contents of all the pages in this Website are owned by, or licensed to, the Firm.

Unless otherwise specified, the authors of the literary and artistic works in the pages in this Website have asserted their moral right pursuant to Section 77 of the Copyright Designs and Patents Act 1988 to be identified as the author of those works.

Conditions of your use of this Website

Except as stated below, the contents of this Website may not be copied, reproduced, distributed, republished, downloaded, displayed, posted or transmitted in any form or by any means without the prior express written permission of The Firm. You may not distribute, display or copy any of the contents of the pages contained in this Website to third parties including, but not limited to 'caching' any material on this Website for access by third parties and 'mirroring' any material on this Website.

You may print or download to disk the contents of individual pages of this Website for the purpose of private and personal non-commercial use. You may also permit your computer to make an electronically stored, transient copy of the content in this Website for the purpose of viewing it while connected to the Internet only. However, you may only make one copy of any content.

Warnings and Disclaimers

The Firm has used reasonable care and skill in assembling the information in this Website. However information or advice in the unrestricted areas of the Website cannot be tailored to personal circumstances or particular situations. There may also be factors relevant to you which fall outside the scope of the content of this Website. Accordingly, the material on this Website does not constitute personal advice. You should not rely solely on any material in this Website to make (or refrain from making) any decision or take (or refrain from taking) any action.

Legislation changes frequently and any material in this Website should not be relied upon after the date on which it is accessed.

The information contained in the material in the unrestricted areas of this Website is only for information purposes. The Firm by permitting the use of this Website, does not hold itself out as providing any accounting or legal advice. It also does not make any recommendation or endorsement as to any advisor or other service or product or to any material submitted by third parties or linked to this Website.

Any references in this Website to taxes and duties of any sort (including National Insurance Contributions) refer only to such taxes and duties as apply nationally throughout mainland England, Scotland and Wales.

Exclusion of liability

The pages contained in this Website may contain technical inaccuracies and typographical errors. The information in these pages will be updated from time to time but may at times be out of date. The Firm will use its best endeavours to reflect legislative changes within 90 days of such legislation coming into force. The Firm can however accept no legal responsibility for keeping the information in these pages up to date, or liability for any failure to do so.

The Firm does not make any warranty or representation as to the accuracy, completeness or fitness for purpose of any material on this Website or the reliability of the access to this Website.

In no event do The Firm accept liability of any description, including liability for negligence (except for personal injury or death), for any damages or losses (including, without limitation, loss of business, revenue, profits, or consequential loss) whatsoever resulting from use of or inability to use this Website. The Firm makes no warranty that this Website (or websites which are linked to this Website) is free from computer viruses or any other malicious or impairing computer program.

Other's advertisements

This Website may contain material submitted and created by third parties. The Firm excludes all liability for any illegality arising from or error, omission or inaccuracy in such material.

This Website also contains links to other websites which are not under the control of and are not maintained by The Firm. The Firm is not responsible for the content of those sites. The Firm provides these links for your convenience only but does not necessarily endorse the material on these sites. The Firm makes no warranty or representation as to the accuracy, completeness or fitness for purpose of any material on these sites. You proceed to these websites at your own risk.

Data Protection and Privacy

Any details which you provide to us from which The Firm can identify you are held and processed in accordance with our Data Protection Registration.

Law governing the Terms

Use of this Website and these Terms shall be subject only to the laws of England and Wales which shall exclusively govern the interpretation, application and effect of all the above permissions, exclusions, licences and conditions of use.

Jurisdiction

The Courts of England and Wales shall have exclusive jurisdiction over all claims or disputes arising in relation to, out of or in connection with this Website and its use and these Terms.

Where national regulatory authorities have jurisdiction over the contents of this Website, The Firm has attempted to ensure compliance with the requirements of such regulatory body. However, some of the information in the pages contained in this Website is not to be accessed from certain jurisdictions and no representation or warranty is made as to whether the information available in this Website complies with the regulatory regime of countries from which the pages in this Website should not be accessed.

Adams Root & Associates is the trading name of Adams Root & Associates Ltd, 86 Shirehampton Road, Stoke Bishop, Bristol, BS9 2DR.

Adams Root & Associates Ltd is committed to protecting your privacy.

Information given through our web site forms is used solely to service you with information or further actions as requested. It will not be passed on or sold to third parties.

Standard web server logs are kept, recording basic information for statistical analysis, such as page views, referrer sites etc, and highlighting any malicious behaviour attempts.

“This website uses Google Analytics, a web analytics service provided by Google, Inc. (“Google”).  Google Analytics uses “cookies”, which are text files placed on your computer, to help the website analyze how users use the site. The information generated by the cookie about your use of the website (including your IP address) will be transmitted to and stored by Google on servers in the United States . Google will use this information for the purpose of evaluating your use of the website, compiling reports on website activity for website operators and providing other services relating to website activity and internet usage.  Google may also transfer this information to third parties where required to do so by law, or where such third parties process the information on Google's behalf. Google will not associate your IP address with any other data held by Google.  You may refuse the use of cookies by selecting the appropriate settings on your browser, however please note that if you do this you may not be able to use the full functionality of this website.  By using this website, you consent to the processing of data about you by Google in the manner and for the purposes set out above.”

No other browser cookies are used on this site.

For administrators of the website browser cookies are used allowing access to private pages requiring a user authentication.