Working from Home – will the tax relief be axed?
Throughout the COVID-19 pandemic, workers across the country have been required to work from home due to national lockdowns and to curb the spread of coronavirus. As a result, and to help with the cost of increased household expenses, the government allowed a concession whereby workers could claim an allowance of £6 per week (raised from £4 per week in the previous tax year).
2021 Year in Review: Food, Drink and Hospitality Sector
As we look back over the food, drink and hospitality sector in 2021 what are the key words that have shaped the year? Covid, Brexit, human capital challenges, sustainability and organisational agility all immediately come to mind.
Hybrid Working at AAB
At AAB we’re always looking to progress both to enhance our awesome client experience and provide a platform for our people which reflects this. The latest changes follow discussions and feedback from the team around working policies in ‘the next normal’. As a result, we are happy to announce that we have introduced hybrid working for all staff (as of 1 April 2021) and enshrined this in our employment contracts for all existing and new staff across our offices in Aberdeen, Edinburgh and London.
Recovery Loan Scheme – The key information
The UK Government’s £75bn Recovery Loan Scheme (RLS), launched earlier this week, to provide financial support to businesses affected by the pandemic. The scheme, which will be open until 31 December 2021, can be accessed to fund working capital, investment and growth. There is no turnover restriction for businesses accessing the scheme.
Coronavirus Job Retention Scheme extended until September 2021
Following on from the Budget that was delivered by the Government yesterday, Wednesday 3rd March, it has now been confirmed that Coronavirus Job Retention Scheme (CJRS) will be extended until September 2021.
Further Extension to VAT Rate Cut for Tourism & Hospitality Industries
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.
Did you defer your VAT due to COVID?
*Updated 23 February 2021*
The VAT Deferred payment scheme is now open and can be applied for using the following link: https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-covid-19
If you have any queries regarding the scheme, please contact your usual AAB contact.
Furlough and beyond
Since the Coronavirus Job Retention Scheme (CJRS) was first thrust upon us just over 10 months ago, it has acted as an unprecedented support mechanism in helping employers and employees across the whole of the United Kingdom cope with the uncertainty in surviving as a business whilst also retaining employees in their jobs. Although all jobs have not been saved, thousands of jobs, have thankfully been saved due to the scheme.
Could Wealth Taxes be an option to pay for the COVID-19 deficit?
The Wealth Tax Commission have now published their final report which considers whether a UK Wealth Tax should be introduced, and if so, how this could be applied. Although the Chancellor was quoted in July 2020 as dismissing the introduction of a Wealth Tax, the deficit as a result of the COVID-19 pandemic has continued to increase and six months on the country is back in a state of lockdown with much of the economy closed for business. The Commission have estimated that a one off Wealth Tax could raise one-quarter of a trillion pounds.
Furlough during the Christmas period
With Christmas only one month away, employers and employees will now be thinking ahead on what this means during Christmas when most employers shutdown or employees request holidays during the festive period.