HMRC are sending letters to individuals who are named as a Person of Significant Control (PSC) of a company registered at Companies House. These letters have been issued to a large number of taxpayers and are being sent directly to individuals and/or separate letters to their agent, where the taxpayer is represented.
Indirect Tax changes can help revitalise the tourism and hospitality sector
Against the backdrop of a post-Brexit and post-Pandemic landscape, the 2021 Scottish Elections have taken on a very different emphasis. Looking at the manifestos of the five main political parties, not unsurprisingly, in addition to the inevitable consideration of Scotland’s Future; “Recovery” and “Rebuild” are the key themes. I have considered these manifestos from the viewpoint of their impact on the Scottish Public Sector.
Following the introduction of the domestic reverse charge for construction services on 1 March 2021, many construction businesses will be preparing their first VAT returns under the new regime. From our experience of advising construction clients, what appears to be a simple change is throwing up significant challenges for businesses.
Even with COVID19 overshadowing everything during 2020, Brexit did not exactly creep up on exporters on 1 January 2021. However, with the EU-UK Trade and Cooperation Agreement only being finalised on Christmas Eve, UK businesses had very little time to prepare for the reality of Brexit. It is little wonder, therefore, that we have had all of the headlines in the first few months of 2021 around delays at the ports, rotting food on lorries and empty shelves in stores. Even the UK’s beloved “Percy Pig” was threatened by EU “red tape”!
Following Rishi Sunak’s budget announcement earlier today the temporary reduced rate of 5% VAT for the Tourism and Hospitality Sectors has been extended for a further 6 months until 30th September 2021. Furthermore, an interim rate of 12.5% will be introduced for the sector from 1st October 2021 until 31st March 2022. Thereafter the standard rate of VAT will apply again.