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NEW CLIENTS

Please note we are no longer taking any new long term client instructions for Self Assessment individuals as our list is now full. However, If you have a limited company or any specialist queries such as Capital Gains or an HMRC enquiry, please contact us, we may be able to help.

CAPITAL GAINS ANNUAL ALLOWANCE

The annual exempt allowance for Capital Gains Tax will be cut from April 2024. This means that the exempt amount will be reduced from £6,000 to £3,000 for gains arising on or after 6 April 2024. The exempt amount has been reduced over the last few years from a high of £12,300 in 2022/23.

Individuals with small gains should consider this reduction before 6 April 2024 to fully use the £6,000 allowance. Married couples and civil partners both qualify for the £6,000 allowance, so it could be beneficial to transfer any assets into joint ownership before disposal, thereby fully utilising each individual’s annual allowance. Transfers between spouses and civil partners are exempt from Capital Gains Tax. Making use of the full allowance could double the Capital Gains allowance to £12,000 for a couple.

Capital Gains Tax on individuals is normally charged at 10% or 20%, depending on whether they pay tax at the basic rate or higher rates. A higher rate of Capital Gains Tax applies to gains on the disposal of residential property. The rates are 18% for basic rate taxpayers and 28% for higher rate taxpayers. All gains must be reported to HMRC, and the tax paid, within 60 days of the date of sale.

ALAN SUGAR CAUGHT TRYING TO AVOID TAX OF £186M

Alan Sugar tried to avoid paying a £186M tax bill on a £390M dividend paid in 2021 by relocating to Australia and claiming he was non resident in the UK. However, under the terms of Part 4 of the Constitutional Reform and Governance Act 2010, reputedly introduced in response to the activities of former Conservative Party Deputy Chair Lord Ashcroft, there is a specific (reverse) exemption from the standard residence rules for members of either House of Parliament.

Alan Sugar has a seat in the House of Lords, and they are automatically deemed to be UK resident and UK domiciled for the purposes of income tax, inheritance tax and capital gains tax. This means that, even though he apparently took a formal leave of absence from the House of Lords, Lord Sugar was indisputably UK tax resident when the dividend was paid and, as such, liable to pay the £186m to HMRC.

The link to the full story is below.

https://www.accountingweb.co.uk/tax/personal-tax/alan-sugar-blames-accountants-for-ps186m-tax-bill

You can draw your own conclusions on this behaviour! He still sits in the House of Lords today, scrutinising legislation and influencing public policy!

TAX ON SAVINGS INTEREST

We’ve had a few enquiries recently from people whose savings income has increased significantly, because of the higher interest rates, and asking whether they now have a tax liability.

The answer depends on individual circumstances, but most people can earn some interest from their savings without paying tax.

Your allowances for earning interest before you must pay tax on it include:

Your Personal Allowance
Starting rate for savings
Personal Savings Allowance

You can use your Personal allowance to earn interest tax-free if you have not used it up on your wages, pension or other income.

You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings. The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be.

You’re not eligible for the starting rate for savings if your other income is £17,570 or more.

Your starting rate for savings is a maximum of £5,000. Every £1 of other income above your Personal Allowance, currently £12,570, reduces your starting rate for savings by £1.

Example: If you earn £15,000 in wages and have £2,000 in interest on your savings.

Your Personal Allowance is £12,570 which is used up by your wages. The remaining £2,430 of your wages reduces your starting rate for savings to £2,570 (£5,000 less £2,430), so you won’t pay tax on your £2,000 interest.

You may also get up to £1,000 of interest and not have to pay tax on it, depending on which Income Tax Band you’re in. This is your Personal Savings Allowance (PSA).

To work out your tax band, add all the interest you’ve received to your other income. If you pay tax at the basic rate your Personal Savings Allowance will be £1,000. If you pay tax at Higher rate, it will be £500 and if you’re lucky enough to pay Additional rate tax you do not get a PSA.

Savings in tax-free accounts like Individual Savings Accounts (ISAs) and some National Savings and Investments accounts do not count towards your allowance. Premium bond wins do not count either.

If you have a joint account, interest will be split equally between the account holders.

You pay tax on any interest over your allowance at your usual rate of Income Tax. If you’re employed or get a pension, HMRC will change your tax code, so you pay the tax automatically. To decide your tax code, HMRC will estimate how much interest you’ll get in the current year by looking at how much you got the previous year.

If you complete a Self-Assessment Tax Return, report any interest earned on savings there.

HMRC state you need to register for Self-Assessment if your income from savings and investments is over £10,000.

THE DIGITAL POUND

The way we use money is changing.

The Bank of England and HM Treasury have published a consultation paper to consider the launch of a potential digital pound, known as the central bank digital currency (CBDC). The possible new digital pound has also been referred to as ‘digital sterling’ and ‘Britcoin’.

The digital pound would be a new form of money, like a digital banknote, issued by the Bank of England for everyone to use for day-to-day spending. You would be able to use it in-store or online to make payments.

The digital pound would be denominated in sterling and its value would be stable, just like banknotes. £10 in digital pounds would always have the same value as a £10 banknote. If introduced it would not replace cash. The Bank of England has committed to continue to issue cash for as long as people want to keep using it.

The digital pound would not be a cryptocurrency or cryptoasset. As opposed to cryptocurrencies, which are issued privately, the digital pound would be issued by the Bank of England and be backed by the Government.

The consultation closes on 7 June 2023 and the design phase will be worked on over the next 2-3 years. Below is a link to the consultation.

https://www.bankofengland.co.uk/the-digital-pound

CORPORATION TAX FROM 1 APRIL 2023

From 1 April 2023, the Corporation Tax main rate will increase to 25% for companies with profits over £250,000. A Small Profits Rate (SPR) of 19% will also be introduced from the same date for companies with profits of up to £50,000. This will ensure these companies pay Corporation Tax at the same rate as currently.

Where a company has profits between £50,000 and £250,000 a rate of Corporation Tax will apply that bridges the gap between the lower and upper limits. The lower and upper limits will be proportionately reduced for short accounting periods of less than 12-months and where there are associated companies.

The effect of marginal relief is that the effective rate of Corporation Tax gradually increases from 19% where profits exceed £50,000 to 25% where profits are more than £250,000.

HMRC INTEREST RATES

We’ve had a few queries recently about the interest charged by HMRC on late payment of tax. With interest rates now rising, and clients struggling to pay their tax because of the rise in the cost of living, this has become quite a hot topic.

HMRC interest rates are set in legislation and are linked to the Bank of England base rate. There are 2 rates:

late payment interest, set at base rate plus 2.5%
repayment interest, set at base rate minus 1%, with a lower limit of 0.5% (known as the ‘minimum floor’)

With the Bank of England base rate rising to 3.5% on 15 December 2022, the late payment interest rate applied to most late taxes increases by 0.5% to 6.00%.

The repayment interest rate will increase by 0.5% to 2.5%.

The next question is why are the repayment and late payment rates so different?

According to the HMRC website:

“The late payment interest rate encourages prompt payment. It ensures fairness for those who pay their tax on time. The repayment interest rate compensates taxpayers fairly, when they overpay or pay early, for loss of use of their money.

The difference between rates is in line with the policy of other tax authorities worldwide. It compares favourably with commercial practice for interest charged on loans or overdrafts and interest paid on deposits”.

DELAY TO MAKING TA DIGITAL FOR INCOME TAX SELF ASSESSMENT (MTD for ITSA)

On 19th December the UK Government announced that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will now be mandatory from April 2026, rather than from April 2024.

The details announced include:

from April 2026, self-employed individuals and landlords with a turnover of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software
those with a turnover of between £30,000 and up to £50,000 will need to do this from April 2027
most taxpayers within the scope of MTD for ITSA will be able to sign up voluntarily before they are mandated to do so
the UK Government will review the needs of smaller businesses, and particularly those under the £30,000 threshold before taking further decisions. This will look in detail at how the MTD for ITSA service can be shaped to meet their needs and the best way for them to fulfil their Income Tax obligations. Once that review is complete – and in consultation with businesses, taxpayers, agents, and others – the UK Government will lay out the plans for any further mandation of MTD for ITSA

For many years, people have been saying that a £10,000 turnover threshold for MTD ITSA was too low and it seems the government has finally listened.

There was no mention of quarterly reporting in the government statement, so we must assume that this aspect of MTD reporting will remain in place.

AUTUMN STATEMENT - PERSONAL DIVIDEND ALLOWANCE/CAPITAL GAINS TAX

The Autumn Statement announced changes to the personal dividend allowance, which will be cut to £1,000 (currently £2,000) from April 2023. The allowance will be further reduced to £500 from April 2024.

In addition, the 1.25 percentage point increase in dividend tax rates is to be maintained from April 2023, meaning that the current rates of 8.75%/33.75%/39.35% will remain for the basic/higher/additional rate taxpayers respectively.

It was also announced in the statement, the Capital Gains Tax annual exemption will be cut from £12,300 to £6,000 with effect from 6 April 2023 and halved again to £3,000 in April 2024.

The rates of Capital Gains Tax remain at 10% and 20% for most assets, but 18% and 28% for residential properties.

The various Capital gains Tax reliefs have not been altered at this time, but don’t count on all those business reliefs still being in place by the end of this parliament!

TAX EFFICIENT WAYS TO WITHDRAW MONEY FROM A COMPANY

We often get asked by directors, who are also normally sole shareholders, about the most tax efficient way to take money out of a company. The answer is it will always be dependent on personal circumstances. However below is a guide on the basis that the income from the company is the directors only income.

It’s important to remember that the limited company is a separate legal entity - all its assets belong to the business rather than its owner. This means that money cannot just be taken from the company like it is the director’s own money. Each withdrawal has a tax consequence and must be accounted for correctly.

There are three main ways in which money can be withdrawn from the company to the director:

Salary
Dividend payments
Director’s loan

Salary

The most familiar method of taking money out of a limited company is for the directors to pay themselves a salary. Company directors are still employees of the business, and they will need to be registered with HMRC for PAYE and pay National Insurance Contributions on their earnings.

Most company directors choose to take a very small salary, up to the Secondary National Insurance Contributions threshold, which is £9,100 for 2022/23. This means that they will still qualify for the state pension and benefit entitlements, without incurring a personal liability and without the company having to account for National insurance Contributions.

DIVIDEND PAYMENTS

Most company directors are also shareholders of the company. On this basis, If the director is only receiving a small salary, they usually take most of their money in the form of dividends. You can take dividends from your company as long as it has the reserves. However, you should be aware that reserves are different to profits. Dividends are paid out of the company's profits after corporation tax has been deducted.

It is normally a very tax efficient method of taking a payment. To start with, everyone has an annual tax-free dividend allowance of £2,000. Secondly, if only a small salary is taken, the director has the remainder of their personal allowance available on which they do not pay tax. For 2022/23 the personal allowance is £12,570. If the director has only taken a salary of £9,100, there is a balance of £3,470 on which they don’t pay tax. This means the first £5,470 of dividends is tax free.

If the director is then liable to tax at the basic rate, the dividends will then be taxed at 8.5%. If the director is then also liable to tax at the higher rate, tax will be due on the dividends at 33.75%. An additional rate taxpayer will pay tax on the dividends at 39.35%.

DIRECTOR'S LOAN

A director’s loan is when a director (or other close family member) gets money from the company that is not:

a salary, dividend or expense repayment
money they’ve previously paid into or loaned the company

This loan needs to be repaid to the company within nine months of the end of the financial year to avoid the company having to pay corporation tax on the loan. The current rate of tax is 33.75% for loans made after 6 April 2022.

If the company pays tax on the loan it will be due a repayment of the tax after the loan has been repaid. However, this can take some time as the repayment will not be due until 9 months after the end of the financial year in which the repayment was made.

It should also be noted that if the directors loan account is overdrawn by greater than £10,000 at any point in the tax year, it must be declared to HMRC on a P11D. The director will also have to include it on their self-assessment tax return.

Directors should be aware that if too much money is borrowed and the company is unable to pay its creditors, the company could be forced into liquidation and the liquidator can take legal action against the director to collect the debt.

Directors’ loans are a specialist area and advice should always be sought before taking money this way.

Summary

It’s not always easy to know the best way to take money out of the company. It will depend on the business and personal circumstances. Having a dedicated advisor can take the stress of tax planning away, as we will advise on a tailored salary and dividend combination for tax-efficient withdrawals from the company.

Find out more and contact us. Telephone: 01983 874490 or 07763 359795. Email: mortontax@btinternet.com

DIVIDEND TAX INCREASE FROM 6 APRIL 2022

Following the 1.25% increase in National Insurance Contributions that came into effect on 6 April 2022, this is also reflected in a similar increase in the tax charge on dividends.

The dividend tax rates for 2022-23 are as follows:

Basic rate taxpayers will pay tax on dividends at 8.75%.
Higher rate taxpayers will pay tax on dividends at 33.75%.
Additional rate taxpayers will pay tax on dividends at 39.35%.

There is a dividend tax allowance that was introduced in 2016 with an annual tax-free amount of £5,000, with tax payable on dividends received over this amount. The tax-free dividend allowance was reduced to £2,000 with effect from 6 April 2018 and has remained the same ever since.

The dividend tax is charged on taxable dividend income an individual receives that falls outside of their personal allowance and that exceeds the dividend allowance.

WHAT IS THE DIFFERENCE BETWEEN TAX EVASION AND TAX AVOIDANCE?

We are often asked what the difference is between tax evasion and tax avoidance.

Tax evasion is illegal and arises where someone deliberately evades tax. This could include deliberately submitting false tax returns, falsely claiming repayments or reliefs or hiding income, gains or wealth offshore.

If caught, the taxpayer could either be subject to a civil intervention by HM Revenue & Customs, where any tax evaded is repaid with interest and penalties, or, in more serious cases it could result in a criminal intervention with the penalty potentially being a custodial sentence.

Tax avoidance on the other hand is where a taxpayer takes advantage of the tax rules to reduce the tax they pay without breaking the law. However, the lines between the two can get blurred as can be seen in the comments made by HMRC below.

HMRC’s own guidance to help taxpayers spot the signs of tax avoidance, state that ‘tax avoidance involves bending the tax rules to try to gain a tax advantage that was never intended. It usually involves contrived transactions that serve no real purpose other than to artificially reduce the amount of tax that someone has to pay. It is not the same as effective tax planning but is often promoted as such' The link to the HMRC guidance is below.

https://www.gov.uk/government/publications/tax-avoidance-facts/spot-the-signs-of-tax-avoidance

There is no restriction on taxpayers taking full advantage of tax reliefs and allowances in the legislation. This is not tax evasion or tax avoidance, rather just paying the minimum allowable without breaking the law.

TRIVIAL BENEFITS

The trivial benefits in kind exemption applies to small non-cash benefits like a bouquet of flowers or a bottle of wine given occasionally to employees. By taking advantage of the exemption, employers can simplify the treatment of benefits in kind whilst at the same time offering a tax efficient way to give small gifts to employees.

Although the benefit is defined as ‘trivial’, this offers a great opportunity to give small rewards and incentives to employees. The gifts cannot be provided as a reward for services performed or as part of the employees’ duties. However, gifts to employees on special occasions such as the birth of a child or a marriage or other gestures of goodwill would usually qualify.

The employer also benefits as the trivial benefits do not have to be returned to HMRC. There is also an exemption from Class 1A National Insurance contributions.

You do not have to pay tax for your employee if all the following apply:

it cost you £50 or less to provide
it isn’t cash or a cash voucher
it isn’t a reward for their work or performance
it isn’t in the terms of their contract.

The rules also allow directors to benefit, but overall payments made in a tax year cannot exceed £300. The £50 limit remains for each gift but could allow for up to £300 of non-cash benefits to be withdrawn per person per year. The £300 cap does not apply to employees. If the £50 limit is exceeded for any gift, the value of the benefit will be taxable.

HMRC WAIVES LATE FILING PENALTIES FOR ONE MONTH

HMRC have announced that self-assessment taxpayers will get an extra month to file their tax returns without incurring a penalty although interest will still accrue on any tax paid late.

Whilst HMRC is still encouraging agents and taxpayers to file before 31 January 2022, if the returns are filed by 28 February 2022 a late filing penalty will not be incurred.

If you’ve left your return to the last minute, you now have a small reprieve.

CRYPTO ASSETS

We had an enquiry this week on the tax consequences of buying and selling Bitcoin and Ethereum.

A lot of individuals now hold crypto assets as a personal investment, usually for capital appreciation in their value but in some cases to make purchases.

HMRC now has a Cryptoassets manual and is clear that in the vast majority of cases, any disposals of crypto assets will be subject to capital Gains Tax (CGT). This includes:

selling tokens for money
exchanging tokens for a different type of crypto asset
using tokens to pay for goods or services
giving away tokens to another person (unless it is a gift to your spouse or civil partner)

Taxpayers can deduct certain allowable costs when working out their Capital Gain. These include but are not limited to:

the consideration (in pound sterling) originally paid for the asset
transaction fees paid before the transaction is added to a blockchain
advertising for a buyer or seller
making a valuation so they can work out the gain for that transaction

Only in exceptional circumstances would HMRC expect individuals to buy and sell crypto assets with such frequency, level of organisation and sophistication that the activity amounts to a financial trade in itself. If the taxpayer’s activity is considered to be trading then Income Tax will take priority over Capital Gains Tax and will apply to profits (or losses).

SUBCONTRACTOR DEDUCTION RATES

We have had quite a few queries recently from subcontractors, asking why they have had tax deducted at 30% from their wages.

The answer is that not only must the subcontractor be registered for self-assessment with HMRC, and have a Unique Taxpayer Reference (UTR), but they must also be registered as a Construction Industry Scheme (CIS) subcontractor. If they are not registered for CIS, the higher rate deduction of 30% will apply. If they are registered, the normal deduction is 20%. In some circumstances subcontractors can apply for gross payment status but there are various tests that the business needs to pass to attain this.

The onus for all deductions is on the contractor and they must verify each subcontractor with HMRC. It is HMRC who advise the contractor what rate of deduction to apply.

Below are two links that you may find useful. The first link is a guide to what you must do as a subcontractor, the second shows how to register for the Construction Industry Scheme.

https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/get-paid

https://www.gov.uk/what-you-must-do-as-a-cis-subcontractor/how-to-register

If you need assistance, whether you are a contractor or a subcontractor, please get in touch.

CONSTRUCTION SERVICES – DOMESTIC REVERSE CHARGE

New VAT rules for building contractors and sub-contractors came into effect on 1 March 2021. The new rules make the supply of most construction services between construction or building businesses subject to the domestic reverse charge. The reverse charge only applies to supplies of specified construction services to other businesses in the construction sector.

HMRC’s guidance states that you must use the reverse charge for the following services:

constructing, altering, repairing, extending, demolishing or dismantling buildings or structures (whether permanent or not), including offshore installation services
constructing, altering, repairing, extending, demolishing of any works forming, or planned to form, part of the land, including (in particular) walls, roadworks, power lines, electronic communications equipment, aircraft runways, railways, inland waterways, docks and harbours, pipelines, reservoirs, water mains, wells, sewers, industrial plant and installations for purposes of land drainage, coast protection or defence
installing heating, lighting, air-conditioning, ventilation, power supply, drainage, sanitation, water supply or fire protection systems in any building or structure
internal cleaning of buildings and structures, so far as carried out in the course of their construction, alteration, repair, extension or restoration
painting or decorating the inside or the external surfaces of any building or structure
services which form an integral part of, or are part of the preparation or completion of the services described above - including site clearance, earth-moving, excavation, tunnelling and boring, laying of foundations, erection of scaffolding, site restoration, landscaping and the provision of roadways and other access works

This means that for these specified supplies, sub-contractors no longer add VAT to their supplies to most building customers, instead, the contractors are obliged to pay the deemed output VAT on behalf of their registered sub-contractor suppliers. This is known as the Domestic Reverse Charge. On the same VAT return, contractors can claim back the deemed input tax on the supply subject to the usual rules.

We now offer VAT services so please contact us for a no obligation quote.

ARE YOU A LANDLORD THAT OWES TAX TO HMRC?

The HMRC Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to bring their affairs up to date by disclosing any outstanding liabilities whether due to deliberate tax evasion or a general misunderstanding of the tax rules. Any landlord with undisclosed taxes can apply to be included in the campaign.

The Let Property Campaign is not just about putting an individual's tax affairs right relating to the rental income. There must be rental income to take part in the Let Property Campaign, but the campaign must also declare any other undisclosed income. If someone who is self-employed has also not declared all their income from self-employment they should use the campaign to bring all their tax affairs up to date.

Landlords taking advantage of the campaign may benefit from much lower penalties which can in the most extreme cases be up to 100% of the tax for UK income and 200% for offshore liabilities.

HMRC obtain information relating to rental income from both councils and letting agents, having the legal power to do so. HMRC will then write to the individual to whom the rent is paid and invite them to take part in the Let Property Campaign. This is called a prompted disclosure and has a higher penalty than an unprompted disclosure. In short, landlords will pay less if they come forward voluntarily without being contacted first by HMRC.

If you have undeclared income please contact us for a no obligation quote. We have extensive expertise in dealing with HMRC investigations, having undertaken this work for more than 30 years within HMRC. We are non-judgemental and will defend your position rigorously within the parameter of the law.

PAYROLL SERVICES

If you are an employer

Do you pay any of your employees more than £120 per week?
Do any of your employees get expenses and benefits?
Do any of your employees have another job?
Do any of your employees have a pension?

If you can answer yes to any of these questions, you should probably be registered with HMRC as an employer and make Real Time Information (RTI) submissions to HMRC on or before each payday.

https://www.gov.uk/paye-for-employers

We are now pleased to offer payroll services for small businesses so let us take the stress out of running yours. Please contact us for a free no obligation quote.

SELF EMPLOYED INCOME SUPPORT SCHEME (SEISS)

Question: What year are SEISS grants taxed in?

Answer: Grants 1, 2 and 3 are shown and taxed in the 2020/21 self-assessment. Grants 4 and 5 will be shown in the 2021/22 self-assessment.

To ensure that the grants are returned correctly, and can be checked by HMRC, the amounts claimed are entered separately on the Tax Returns and not added to turnover.

FACE TO FACE MEETINGS

Now that we are slowly emerging from lockdown, we are starting to arrange face to face meetings with new clients and existing clients to discuss the years trading.

If you would like your 2020/21 Tax Return completed and submitted to HMRC sooner rather than later, get in touch. Do not leave it until January!

MAKING TAX DIGITAL

Making Tax Digital (MTD) for Income Tax is set to be introduced for Sole Traders, Partnerships and Landlords from April 2023. Businesses will have to keep digital records instead of paper receipts. This means you will be required to keep track of your tax affairs digitally using MTD compatible software.

Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.

The Self-Assessment Tax Return will be replaced by five new reporting obligations, four during the year and a final declaration after the year end to include any other income, amendments or claims for reliefs.

Morton Tax is aware that clients will need support with this change and we are actively planning well in advance. Your requirements depend on you, how you feel about technology and the nature of your business.

MTD is the biggest administrative change to be made to the UK tax system for businesses since the introduction of self-assessment in 1996. You can read more about it here.

https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

HMRC SUSPENDS LATE FILING PENALTIES UNTIL 28 FEBRUARY

In an eleventh-hour U-turn, HMRC have bowed to pressure from professional bodies and waived late filing penalties on tax returns as long as the taxpayer can file their return online by 28 February. The relaxation of late filing penalties does not affect the payment deadline, which means interest will be charged from 1 February on any outstanding liabilities if taxpayers do not pay their bills by 31 January.

NO EXTENSION TO THE SELF-ASSESSMENT DEADLINE OF 31 JANUARY 2021

HMRC have rejected calls to relax the tax return deadline of 31 January 2021. They will not waive late filing penalties for late returns. Pandemic related disruptions and agent delays may be accepted as a reasonable excuse and they will also extend the period to appeal any penalty. However, appealing a penalty will incur time, money and stress.

INSOLVENCY UPDATE – OCTOBER 2020

The Government has announced it will bring forward new laws requiring mandatory independent scrutiny of pre-pack administration sales where connected parties - such as the insolvent company’s existing directors or shareholders - are involved in the purchase. The move is intended to improve confidence and transparency, giving the general public and creditors reassurance that their interests are being protected alongside those of the distressed business. In my view this is an excellent step forward and long overdue.

Whilst on the subject of insolvency, a recent completed case included a 7-year director disqualification for Alexander Nix of SCL Elections Ltd, which traded as Cambridge Analytica, for causing or permitting the company or associated companies to market themselves as offering potentially unethical services to prospective clients; thereby demonstrating a lack of commercial probity. This is the case where millions of Facebook users’ personal data was harvested without consent to be used for political advertising. This is the government press release: https://www.gov.uk/government/news/7-year-disqualification-for-cambridge-analytica-boss

NEW SELF ASSESSMENT SELF-SERVE TIME TO PAY SCHEME ~ September 2020

If you deferred paying your July 2020 Payment on Account, you will need to pay the deferred amount, in addition to any balancing payment and first 2020/21 Payment on Account, by 31 January 2021. This may be a larger payment than you usually pay in January.

If you are unable to pay your Self-Assessment (SA) bill in full by 31 January 2021, you can set up a Time to Pay payment plan of up to 12 months online without speaking to HMRC. This will get automatic approval if the amount is not in excess of £30,000. If the debt is over £30,000, or you need longer than 12 months to repay the debt in full, you can still use the Time to Pay arrangement but you, or your representative, will need to liaise with HMRC.