March 2021 - Accounting And Tax Round-Up - Make Sense
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March 2021 – Accounting And Tax Round-Up

March 2021 – Accounting And Tax Round-Up

Budget 2021 

On 3rd March the 2021 budget was announced. Various schemes such as furlough and SEISS grants were extended and a new Recover loan scheme was announced in order to help businesses who are struggling due to the coronavirus pandemic. Other than this, there haven’t been many Coronavirus announcements apart from amendment to the Pay As You Grow Scheme for repaying bounce back loans. Under new rules, borrowers can take a six-month repayment holiday without needing to have made any previous instalments.

Brexit

On 15th March the SME Brexit Support Fund opened for application. Small businesses can apply for grants up to £2,000 to help them adapt to new customs and tax rules. Small and medium-sized businesses that trade solely with the EU have been encouraged to apply so they can adjust to the new rules.

IR35 Changes Coming

With March coming to a close many people are setting their sights on the huge changes that are coming to IR35 off-payroll working that will start in April. The new rules are designed to make it impossible for people to avoid paying certain taxes by working on a contract but not being classed as full-time employees.

You can read more about the new rules here

Self-Assessment

Significant relaxation of the requirements around Self-Assessment filing has been implemented this year in hope to take some pressure off businesses who are struggling with the coronavirus pandemic. This year, as long as taxpayers have either paid the tax due or agreed on a time to pay plan by 1st April 2021 then no penalty will be charged but interest will still apply from 1st February at 2.6%.

HMRC Investigation News

In February, HMRC sent an email to some taxpayers regarding claims for the SEISS grants. The email requested that taxpayers either provide evidence as to why they were eligible to claim the grant or repay the grant. Failing to respond to the email by 22nd March 2021 could lead to the taxpayer being blocked from receiving any further grants and subject them to a tax investigation.

Reports also show that debts owed to HMRC have tripled due to the coronavirus pandemic. This means that HMRC is under more pressure than ever to find tax mistakes and dish out penalties. The best thing you can do about this is to make sure you keep all records relating to any schemes you have claimed so you can prove easily why you claimed certain schemes. The other thing is to make sure you go with an accountant who will help you keep your accounts in order.

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