New IR35 Status Notices
From 6 April 2021, there will be important changes if you work for medium or large private sector clients through an intermediary, like your own personal service company.
It will be up to your client, not you, to decide if IR35 applies to the work you do and, if it does, deduct PAYE tax and NI.
Status Determination Statements (SDSS)
If your client decides IR35 applies to your work it must notify you by means of an SDS. If the SDS says that IR35 applies to your contract your client must explain why. Check the reasoning and if you disagree you can dispute the SDS.
Takeaway And Delivered Food Change In VAT Rate
VAT on takeaway food was reduced to 5% on hot food or drink unless it’s alcoholic and so subject to 20%. Alcoholic drinks with a mixer are subject to 20% VAT, but mixers sold separately are subject to 5% VAT.
The lower rate was originally intended to apply between 15 July 2020 and 12 January 2021 but in September the Chancellor announced it will be extended to 31 March 2021.
Data Protection Fines Post-Brexit
The Information Commissioner’s Office (ICO) has released guidance that sets out its intentions on the enforcement of data protection laws and fines from the point the UK leaves the EU. Whilst this guidance is currently in draft form, it’s unlikely to be substantively altered between now and 31 December 2020. A final version will be published after that date.
Where a fine is imposed, a business will automatically be offered a 20% early payment reduction (EPR). Should the fine be appealed against, the EPR will be lost. Fines should only be appealed if there are solid grounds.
Commercial Rent Arrears Recovery Changes
On 29 September 2020, the minimum amount of net unpaid rent required before a landlord can exercise its Commercial Rent Arrears Recovery rights was increased to 276 days’ rent.
On 25 December 2020, this will further increase to 366 days’ rent.