Anna’s Accountancy Alerts – Week 32 (8th – 14th November 2021)

Businesswoman using mobile phone in autumn park

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Child Trust Fund

In 2003 the government set up a tax-free savings scheme for children born on or after 1 September 2002, known as Child Trust Funds (CTFs). They lasted until 2011 when they were replaced by Junior ISAs. The government issued a special voucher for each child which could be used to open a CTF account. Parents and others could pay in more.

There are apparently around 6 million and according to statistics published by the Treasury around 55,000 mature each month but the money in many of these remains unclaimed.

If the account details can’t be recalled, HMRC has an online tracking tool to help. You need an HMRC personal tax account to use it.

HMRC’s CTF web page and tracker tool

Rate changes for hospitality industry

From 30 September 2021 the new standard rate for qualifying supplies is 12.5%, which will apply until 1 April 2022 when it will revert to 20%.

Annual investment allowance (AIA)

The AIA is currently capped at £1m per year but this limit will fall to £200,000 from 31 March 2023.

Businesses are entitled to one AIA each but in some circumstances two or more businesses are required to share a single AIA.

If two or more companies are “related” and in the same “group”, they can claim only one AIA between them. Companies are related if they either operate from the same premises or have very similar trades. Companies are part of a “group” where one of them owns a controlling stake in the other.

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