Welcome to the February 2021 Newsletter from Walsh & Co

The Confederation of British Industry (CBI) has called on the government to supply businesses affected by the coronavirus (COVID-19) with additional financial assistance. The CBI's call comes ahead of the 2021 Budget, which will be delivered on 3 March.

Meanwhile, HMRC's Time to Pay facility has helped to spread tax payments worth more than £69 million through the creation of online payment plans. Almost 25,000 taxpayers have set up online payment plans to help manage their tax liabilities.


CBI urges government to 'act on COVID business support' ahead of Budget

Ahead of the 2021 Budget in March, the Confederation of British Industry (CBI) has urged the government to provide more financial assistance to businesses affected by the COVID-19 pandemic.

The business group has outlined support measures required to help protect UK businesses through the spring. It has called for an extension of the Coronavirus Job Retention Scheme (CJRS) beyond April to the end of June; a lengthening of repayment periods for existing VAT deferrals until June 2021; and an extension of the business rates holiday for at least another three months.

The CBI has also called for an announcement of details of the successor of the Coronavirus Business Interruption Loan Scheme (CBILS) and an extension to capital and interest payment holidays for an additional six months.

'The Budget comes at a crucial time for the UK,' said Tony Danker, Director General of the CBI.

'Almost a year of disrupted demand and extensive restrictions to company operations is taking its toll. Staff morale has taken a hit. And business resilience has hit a sobering new low.

'The government must once again stand shoulder-to-shoulder with businesses to underwrite support for the duration, helping viable enterprises to last the course.'


Taxpayers using Time to Pay to spread cost of tax payments

Tax payments worth over £69 million are being spread through HMRC's Time to Pay facility, according to the tax authority.

HMRC said that nearly 25,000 self assessment taxpayers have set up an online payment plan to manage their tax liabilities in up to 12 monthly instalments.

Last October HMRC increased the threshold for self-serve Time to Pay arrangements from £10,000 to £30,000. Once self assessors have completed their 2019/20 tax return and know how much tax they owe, customers can use the self-serve facility to set up monthly direct debits and spread the cost of their tax bill.

The Time to Pay threshold was increased to help businesses and individuals who have been adversely affected by the COVID-19 pandemic.

Karl Khan, HMRC's Interim Director General for Customer Services, said: 'We know the past year has been tough for many businesses and self-employed people, which is why we're helping them spread the cost of their tax bill into monthly payments.

'Self assessment customers can use the self-serve Time to Pay facility for amounts up to £30,000, with almost 25,000 customers already benefiting from the service.'


ESSENTIAL TAX DATES FOR FEBRUARY

2 February
Deadline for submitting P46(Car) for employees whose car/fuel benefits changed during the quarter to 5 January 2021.

19 February
PAYE, Student loan and CIS deductions are due for the month to 5 February 2021.


QUOTE OF THE MONTH

'This Budget is an opportunity to focus on a balanced economic recovery, not driven solely by consumption and government spending, stimulating much-needed business investment and tackling the systemic challenges that have held the UK back.'

Rain Newton-Smith, Chief Economist at the Confederation of British Industry (CBI), commenting on the business group's Budget wishlist.


ON OUR WEBSITE

A wealth of resources for businesses
With topics ranging from the Bribery Act 2010 to the National Minimum Wage and the National Living Wage, the Your Business section of our site is a hub of essential information.

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For a comprehensive bank of guides covering Venture Capital Trusts, the dividend nil-rate and much more, please visit the Your Money area of our website.


IN THE NEWS

LITRG calls for rise in High Income Child Benefit Charge threshold
The Low Incomes Tax Reform Group (LITRG) has urged the government to raise the High Income Child Benefit Charge (HICBC) threshold to avoid it affecting basic-rate taxpayers for the first time in April.
Click here for the full story

Supreme Court backs small firms on business interruption claims
The UK's Supreme Court has found in favour of small firms receiving payments from COVID-19 business interruption insurance policies.
Click here for the full story

ICAEW calls for further guidance on CIS changes
The Institute of Chartered Accountants in England and Wales (ICAEW) has urged HMRC to publish draft regulations and guidance on the forthcoming changes to the Construction Industry Scheme (CIS).
Click here for the full story

Pandemic drives dramatic increase in SME borrowing
Gross lending to small and medium-sized enterprises (SMEs) in the first three quarters of 2020 reached £54 billion driven by COVID-19 loan schemes, according to figures from trade body UK Finance.
Click here for the full story

TUC urges employers to offer furlough to parents affected by school closures
The Trades Union Congress (TUC) has called on employers to offer furlough to working parents affected by COVID-19 school closures.
Click here for the full story