VAT penalty rules
This was due to take effect on 1 April 2022 but these changes will now be introduced on 1 January 2023. However, the alignment of VAT penalties and interest with those that will apply for direct taxes, e.g. income tax and capital gains, will go ahead as planned in two stages in April 2024 and April 2025.
A third (36 per cent) of UK owner-managed businesses now have lower cash reserves than they did at the start of the pandemic, according to a study by accountancy firm Kreston Reeves. A fifth (20 per cent) of such businesses believe it is unlikely that they will be able to repay any loans taken out during the pandemic.
If you have cash flow problems it is best to speak to your lenders now; early discussions, pointing to what the future might look like when the business recovers, are better.
Many businesses are optimistic that 2022 will be better than last year, with 27 per cent expecting turnover to increase between 26 per cent and 50 per cent, and 39 per cent predicting an increase of up to 25 per cent.
The UK’s major retail banks have agreed to share services to ensure that those still reliant on cash can cope with the decline in high street banking. There will be a number of shared banking hubs rolled out, alongside free-to-use cash machines, enhanced Post Office services and the introduction of cashback without purchase.
Any community that faces the closure of a core cash service, such as a bank branch or ATM will have it’s needs independently assessed by LINK. LINK will then determine whether a new solution should be provided and commission services to meet the cash needs of the community as a whole.