Smaller businesses can apply for grants of up to £2,000 to help them adapt to new customs and tax rules when trading with the EU. Businesses that solely trade with the EU and are new to importing and exporting processes, are encouraged to apply for the grants.

You can use the grant for training on:

• how to complete customs declarations
• how to manage customs processes and use customs software and systems
• specific import and export related aspects including VAT, excise and rules of origin

It can be used to help you get professional advice so your business can meet its customs, excise, import VAT or safety and security declaration requirements.

Your business must:

• have been established in the UK for at least 12 months before submitting the application, or currently hold Authorised Economic Operator status
• not have previously failed to meet its tax or customs obligations.
• have no more than 500 employees
• have no more than £100 million turnover
• only import or export goods between Great Britain and the EU, or move goods between Great Britain and Northern Ireland. If you already import or export goods from or to a non-EU country, you are not eligible for this grant

Your business must also either:

• complete (or intend to complete) import or export declarations internally for its own goods
• use someone else to complete import or export declarations but requires additional capability internally to effectively import or export (such as advice on rules of origin or advice on dealing with a supply chain)

Applications will close on 30 June 2021 or earlier if all funding is allocated before this date.

To apply, follow this link:

https://www.customsintermediarygrant.co.uk/sme-brexit-support-fund

HMRC May Shortly Cancel your VAT Direct Debit

HMRC will decommission the VAT mainframe in 2022. To do this they will  move all the remaining customer accounts from the mainframe to a new IT system. HMRC intend to start moving these accounts in July 2021 and hope to finish the work by September 2021.  

They will cancel customer direct debits before moving them to the new system. They will notify you about this in a letter, which will direct you to log in to your Business Tax Account so that you can set up your direct Debit on the new HMRC system.

If your direct debit is not reinstated, you will be required to pay your VAT through a different method.

An end to umbrella companies.

Ruth Cadbury MP is calling for changes that would effectively shut down the umbrella industry.

Speaking in parliament during a debate on the Finance Bill, Cadbury said: ‘The unintended consequences of IR35 – off payroll legislation – has been a proliferation of umbrella companies, some of which have pushed people into disguised remuneration schemes.

We don’t think she will succeed but we’ll have to wait and see.

Companies House – Extension to filing deadlines.

The automatic extensions will come to an end for filing deadlines that fall after 5 April 2021.

Parliament granted automatic extensions for filing deadlines between 27 June 2020 and 5 April 2021 to relieve the burden on companies during the coronavirus (COVID-19) pandemic and allow them to focus all their efforts on continuing to operate. Automatic extensions were granted for accounts, confirmation statements, event-driven filings and mortgage charges.

There will be no further automatic extensions for confirmation statement filings, accounts filings and event-driven filings after 5 April 2021. After this date, you’ll need to file your documents by your usual deadlines.

For accounts filing deadlines that fall after 5 April, companies can still apply for a 3-month extension. Companies that are eligible and cite issues around COVID-19 in their application will be granted an extension.

Companies that have already had their accounts deadline extended may not be eligible, as the law only allows a maximum filing period of 12 months.

HMRC publish new videos to help with tax debts.

HMRC have published a new video explaining the help they can offer if you cannot afford to pay your tax bill.

You may not be able to pay your bill because your income has gone down, or the bill might be unexpected following a compliance check from HMRC.

The first thing you should do is make sure that the tax is actually due. If you are not sure whether the amount is correct, then you should ask HMRC for a detailed explanation. If you think the amount is incorrect, you may be able to appeal the debt.

Once you are sure the tax is payable you should pay the tax if you can. If you cannot pay the tax by the due date, then you should contact HMRC.

You can find HMRC’s video, explaining the help they can offer you, on the HMRC’s YouTube channel.

If you need it, here is the link.