December 20 Newsletter

December 2, 2020

Business Update

V irtual Christmas Party
Most of us will be enjoying a different type of Christmas party this year. HMRC have updated its guidance to confirm that virtual parties for employees are exempt from tax. They will still be subject to the same limit though, £150 per head. This will include the cost of providing food, entertainment, equipment and other expenses which may be incurred in hosting a virtual event. Remember though that this is not an allowance, so even if you are 1 penny over then you will lose the exemption.

Brexit VAT Update
The transition deadline is fast approaching and regardless of whether there is a trade deal or not, these changes will still take effect. MOSS (Mini One Stop Shop) Applies on digital services which are subject to VAT. After 31/12/20 UK businesses will not be able to file a MOSS return. UK suppliers of digital services to EU consumers will need to either register in an EU member state to file a non-union MOSS return (nb this is easier in an english speaking country), or register for VAT in every member state where they have customers. The deadline for registering will be 10/2/21 for any sales in January 2021, and so on.
EU VAT refunds UK businesses can claim to recover any VAT incurred in other EU member states during 2020 after 31st December 2020. Affected businesses should try to submit electronic claims before 31/3/21.
EU VAT incurred by UK business in 2021 There is a claims process for non-EU businesses incurring EU VAT and this will be open to UK claimants. Claims for VAT incurred in the year ending 30/6/21 must be made by 31/12/21.
Distance sales to EU This will be exports from the UK and imports into the EU. UK suppliers will need to remember import VAT and possible customer duty, customers may be required to pay import taxes.
Goods delivered to UK Consignment value up to £135 will have import VAT at point of sale. Over £135, overseas retailers will need to declare to customs and pay import VAT, etc.

Accounting Update

S EISS (3rd grant) The Self Employed Income Support Scheme opened for the third time on 30th November 2020.
How much is it? The third grant will be based on 80% of three months’ average trading profits, paid in a single taxable instalment capped at £7,500, and will cover the period from 1 November 20 to 29 January 2021. The grant can be claimed anytime between 30th November 20 to 29 January 21.
Who is eligible? You must be self-employed or a member of a partnership. You must also have traded in both the tax years 2018 to 2019 and 2019 to 2020.
Additional eligibility criteria For the third grant you must either be; currently trading but impacted by reduced activity or demand, or have been trading but have to stop temporarily due to Coronavirus. You must also declare that the impact on your business will cause a significant reduction in trading profits. Evidence must be kept to show impacts to trading profits. Here are some examples on GOV.UK to help you to check eligibility.
The Coronavirus Job Retention Scheme (JRS) The Coronavirus Job Retention Scheme is being extended until 31 March 2021. Claims from 1 November must be submitted by 11.59pm 14 calendar days after the month you’re claiming for. E.g. a claim for furlough days in November must be submitted by 14th December 2021. Note, that you can make your claim more than 14 days in advance of the pay date (if you pay your employee in arrears). Remember to keep records of the hours that are worked (and not worked) for 6 years.

App of the month

Hotjar
As the world is quickly moving online our app of the month is hotjar this is a great free tool to set up and run alongside google analytics. Hotjar will track customer journeys on your website and give you a heatmap to show you what is being viewed.
How does it work? They will help you better understand user behaviour so you can make the right changes, improve user experience, and grow conversions online.
Hotjar will sit on your website and analyze more than you have ever done before, giving you video feedback and heatmaps of where your customers are looking on your website.

Free! I would highly recommend setting it up, you can then come back and see what your customers are doing and understanding their full journey.

Team News
Happy Christmas from Youtopia!
We know that 2020 has been a difficult year for many people and businesses. We would like to thank all of our clients for their support, adaptability and sense of humour in getting through the last few months. We honestly love what we do and hope that we have helped reduce some of the stress and anxiety that we have all felt. As ever, if anyone would like any help or advice (or even just a chat!) then please give us a call on 01908 751 972.
Keep safe and well,
Katherine, David, Kasia and Joe

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