November 2020 Newsletter | Cylchlythyr Misol Tachwedd 2020
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Following the announcement of a month-long lockdown in England during November, the UK Government have confirmed that the furlough scheme for employees across the UK will be extended for one month and the rate of support restored to the original level of 80% of wages. Full details are available at:
https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced
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Applications for the third grant under the Self-Employment Income Support Scheme will open on 30 November 2020. This will be based on 55% of average profits, rather than the 70% basis used for the second grant. Full details are available at:
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Mortgage payment holidays of up to 6 months will continue to be available as a result of the additional Covid restrictions in place over the winter months, if you contact your lender. Remember that interest will continue to accrue on the amounts due.
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Airbnb UK confirmed in their latest accounts that they have shared the earnings data of their hosts with HMRC for previous tax years. If you are an Airbnb host and are unsure as to whether you have correctly disclosed your letting income to HMRC, please get in touch.
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For those that deferred VAT payments that were due between March and June 2020, please remember that the amounts deferred need to be paid by 31 March 2021.
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Many individuals leave their estates in good order with a full list of assets available. However, as individuals increasingly hold financial assets in online only accounts, if little to no instructions are left to the executors, recovering the assets at probate can be challenging.
Ask Huw & Aled: I assemble the information my accountant needs in order to prepare my annual tax return. Do I need to keep the original receipts and invoices or are the summaries prepared by my accountant sufficient records for HMRC?
HMRC require you to keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. For example, you will be required to keep your records for the 2019-2020 tax year, which has a submission deadline of 31 January 2021, until 31 January 2026.
Our advice is for individuals to keep records for 7 years from the start of the tax year in question. For example, for 2019-2020, we advise you to keep your records until 6 April 2026. The 7-year rule avoids ambiguity if individuals are unsure of the dates of submission deadlines.
