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01935 815008
The Old Pump House, Oborne Road, Sherborne DT9 3RX, UK
Opening Hours:Monday: 8:30 AM – 5:00 PMTuesday: 8:30 AM – 5:00 PMWednesday: 8:30 AM – 5:00 PMThursday: 8:30 AM – 5:00 PMFriday: 8:30 AM – 5:00 PMSaturday: ClosedSunday: Closed
Area Served:Within 4 miles (6.4km) of The Old Pump House, Oborne Road, Sherborne DT9 3RX, UKGet more exposure
With the end of the personal tax year fast approaching, we have been asked by a number of clients whether it’s worth purchasing electric company cars. As this is an option for many businesses, we have put together an outline of the tax implications below: Benefit in kind rates From 6 April 2020, HMRC have introduced benefit in kind tax exemptions on electric and low emission vehicles, making them more appealing as company cars. From 6th April 2020 – 5th April 2021, fully electric cars (Co2 emissions of nil) will have no benefit in kind tax charge. This will increase to 1% for 2021/22 and 2% for 2022/23. Hybrid vehicles may also qualify for low benefit in kind tax rates but this will depend on the Co2 emissions, along with how many miles the vehicle can cover on a full charge of battery. Capital allowances Historically, cars have not generally qualified for annual investment allowance or first year allowances, meaning often the cost could only be claimed against tax at 8% a year. However, for qualifying low emission and electric cars, you can claim the whole cost of the vehicle against profits in the year it is purchased. To qualify, the vehicle must be purchased new and the Co2 emissions must be below 50g per km. Other benefits Electricity is not classed as a ‘fuel’, therefore no fuel benefit in kind is charged. Further to this, an employer can provide electricity for an employee to charge their car at a workplace, with no personal tax charges for the employee. As electric cars are generally zero emissions, they are also exempt from vehicle excise duty. HMRC have an online calculator which should give you a guide to any benefit in kind tax. Please see the link below: http://cccfcalculator.hmrc.gov.uk/CCF0.aspx With the end of the personal tax year fast approaching, we have been asked by a number of clients whether it’s worth purchasing electric company cars. As this is an option for many businesses, we have put together an outline of the tax implications below: Benefit in kind rates From 6 April 2020, HMRC have introduced benefit in kind tax exemptions on electric and low emission vehicles, making them more appealing as company cars. From 6th April 2020 – 5th April 2021, fully electric cars (Co2 emissions of nil) will have no benefit in kind tax charge. This will increase to 1% for 2021/22 and 2% for 2022/23. Hybrid vehicles may also qualify for low benefit in kind tax rates but this will depend on the Co2 emissions, along with how many miles the vehicle can cover on a full charge of battery. Capital allowances Historically, cars have not generally qualified for annual investment allowance or first year allowances, meaning often the cost could only be claimed against tax at 8% a year. However, for qualifying low emission and electric cars, you can claim the whole cost of the vehicle against profits in the year it is purchased. To qualify, the vehicle must be purchased new and the Co2 emissions must be below 50g per km. Other benefits Electricity is not classed as a ‘fuel’, therefore no fuel benefit in kind is charged. Further to this, an employer can provide electricity for an employee to charge their car at a workplace, with no personal tax charges for the employee. As electric cars are generally zero emissions, they are also exempt from vehicle excise duty. HMRC have an online calculator which should give you a guide to any benefit in kind tax. Please see the link below: http://cccfcalculator.hmrc.gov.uk/CCF0.aspx
Once you have completed the short process you should receive a confirmation email from [email protected] within 3 days of signing up (check your spam folder if this doesn’t come to your inbox). Do not submit a VAT Return until you get a confirmation email.
As all businesses will need to be signed up to MTD by April 2022, we recommend you chose this option rather than setting up and submitting through the business tax account.
To sign up your business up for MTD please use the following link to Gov.UK website https://www.gov.uk/vat-record-keeping/sign-up-for-making-tax-digital-for-vat and scroll down to click the green ‘Sign up now >’ button. The process should take around 10 minutes and you will need the following information:
Covid 19 Governement Support Measures Update January 2021
As we find ourselves in another national lockdown, we will endeavour to guide you through the latest government support measures being made available, as we have done before. We have outlined our understanding of this current support below:
The government have announced further grants for businesses in retail, hospitality and leisure as follows:
We understand that the new grants will be made by local councils- as was the case with the funding last November. We therefore advise you check your local authority’s website over the next few days for further information.
Third SEISS Grant
The deadline to apply for the third SEISS grant is 29th January 2021. The eligibility criteria are the same as for the previous 2 grants and you can apply for this one (as long as you are eligible) even if you haven’t applied for a grant previously.
BounceBack loans
The government have extended the application deadline for BounceBack loans. The scheme is now open until 31 March 2021 and you can borrow up to 25% of your turnover (capped at £50,000).
If you originally borrowed less than the maximum available to you, you can now apply for a ‘top-up’ loan for the difference. The application has to be made with the same lender your original loan was with and you can only make one top-up application. The additional borrowing must be at least £1,000 and the capital repayment holiday will still run for 12 months from your original loan date, not the top-up application.
Coronavirus Job Retention (Furlough) Scheme
As announced on 17th December, the Coronavirus Job Retention Scheme (CJRS), will be extended until 30th April 2021. The government will continue to fund 80% of employee’s salaries (subject to cap of £2,500), for unworked hours, with employers only needing to pay employer national insurance and pension contributions. It’s important to note that you can access this extended scheme even if the employer or employee have not previously used the scheme.
In line with government guidelines, our offices are closed, while the team continue to work remotely. We will be able to arrange for client record drop offs and collections at the office as necessary so, if you are unable to email or upload documents to OpenSpace, please contact the team.
Please contact the team as usual should you need any assistance.
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