Employment Allowance (EA)
The EA reduces an employer’s NI bill by £4,000 per tax year or, if less, the amount of their NI liability. However, to qualify a single-director company must pay at least one other person in excess of the secondary earnings threshold (£732 per month).
The good news is that even if you only pay one other employee above the threshold for one pay period it entitles your company to the EA for the whole tax year. You can claim the full £4k and use it to reduce its NI bill for periods where it only paid the sole director.
Tax Break For Homeworkers
All employees required to work from home because of coronavirus can claim an enhanced tax deduction for 2020/21.
If you had to work at home for even part of a week because of restrictions at your workplace resulting from coronavirus, you can claim a tax deduction of £6 for each week. Refer to the short guide to help you make the claim.
HMRC Adds To Its List Of Approved Bodies
Subscriptions. Directors and employees are entitled to a tax deduction for the cost of membership to HMRC-approved professional bodies or other organisations relevant to their jobs.
Making Tax Digital (MTD) Important Changes
The next stage of Making Tax Digital (MTD) begins in April 2022, when it will be mandatory for all VAT-registered businesses and organisations.
In April 2021 HMRC will close its portal website through which businesses etc. not using MTD can file their VAT returns.
The non-MTD VAT return service will be switched to the MTD platform.
If you don’t currently use MTD, look out for information in your HMRC online Business Tax Account about how this will affect how you log in and file your VAT returns from 1 April 2021.