Business Newsletter – September 2021 – 2020 Innovation
As part of 2020’s commitment to
its members by providing online training for accountants in practice, we have
provided a Business News Update for our members.
UK Government
sets out new timetable for introducing border controls
The UK Government
has set out a new timetable for introducing full import controls for goods
being imported from the EU to the UK.
Full customs
declarations and controls will be introduced on 1 January 2022 as previously
announced, although safety and security declarations will now not be required
until 1 July 2022. Under the revised timetable:
Business and
industry challenges in filling vacancies
The government has
published an analysis of UK businesses’ ability to fill job vacancies across
different industries, and reasons for any recruitment challenges. The data
covers Summer 2021, primarily after coronavirus (COVID-19) restrictions were
eased.
Hospitality
businesses are more than twice as likely as other industries to be experiencing
challenges in filling vacancies compared with normal expectations for this time
of year. Between 23 August and 5 September 2021, 30% of hospitality
businesses said that vacancies were more difficult to fill than normal. This
compares with 13% across all industries (up from 9% in early August).
Vacancy challenges
are more common for larger businesses. Excluding those with fewer than 10
employees, 41% of businesses across all industries were struggling to fill
vacancies in late August, up from 32% earlier in the month.
These difficulties
coincide with a very busy time for recruitment, according to the latest labour market data, with
hospitality among several industries posting record numbers of vacancies in
June to August 2021. Aside from hospitality (30%), the water (27%) and health
(23%) industries were most likely to be finding it more difficult than normal
to recruit staff in late August.
Live Events
Reinsurance Scheme
The scheme rules
for the Live Events Reinsurance Scheme have been published by the Department
for Digital, Culture, Media and Sport (DCMS).
On 5 August 2021,
the government announced that it is partnering with insurers to offer a cost
indemnification insurance scheme which will make cover available against the
cancellation, postponement, relocation or abandonment of events due to new UK
Civil Authority restrictions in response to COVID-19.
The Live Events
Reinsurance Scheme will support live events across the country — such as music
festivals, conferences and business events — that are at risk of being halted or
delayed due to an inability to obtain COVID-19 cancellation insurance. Cover
will be available to purchase alongside standard commercial events insurance
for an additional premium.
The scheme will not
cover loss of revenue prompted by lower demand for tickets or venue capacity,
and the scheme does not cover self-isolation of staff or performers. The scheme
will cover a limited series, or run, of linked events, provided that the event
organiser specifies which event dates from that limited series, or run, require
cover and how much cover they are purchasing for each.
The Scheme will run
to 30 September 2022 with a review point in Spring 2022. Cover will be
available to purchase through participating insurers. A number of prominent
insurers in the Lloyd’s market, including Arch, Beazley, Dale, Ark and Munich
Re, are supporting the scheme. Event organisers can now start approaching these
insurers to discuss their cover.
The full scheme
rules, as published by DCMS, can be found on this page: UK Live Events Resinsurance Scheme
(publishing.service.gov.uk)
Are you planning
to use a Freeport to import or export your goods?
In the Spring 2021
Budget the Chancellor announced a number of areas to be designated as
Freeports. Those areas would have a number of direct and indirect tax
advantages for businesses located there.
Among those
advantages is relief from customs duty and the ability to make simplified
declarations. HMRC have now published guidance for businesses planning to take
advantage of the new procedures.
Freeport customs
sites (also known as a ‘free zone’) are secure customs zones where you can import
or export goods inside the UK’s land border, but where special import or export
rules apply.
If you choose to
use a customs site to import or export goods, you may be able to:
If your goods are
purchased in the UK, you will continue to pay duties and import taxes using the
normal UK rates.
If you are a
business who wants to move goods into or out of a Freeport customs site, you
will need to apply to use the Freeport customs special procedure (a single authorisation combined with easier
declaration requirements) to import goods that are not controlled.
Government Postpone Making Tax Digital for
Income Tax to 2024/25
Having listened to stakeholder feedback from
businesses and the accounting profession, the government have announced that
they will introduce Making Tax Digital (MTD) for Income Tax Self-Assessment
(ITSA) a year later than planned, in the tax year beginning in April 2024.
This will give the self-employed and buy to
let landlords an extra year to prepare for the digitalisation of Income Tax and
also allow HMRC more time for customer testing of the pilot system.
The start date for partnerships to join MTD
for ITSA has been put back still further to the tax year beginning in April
2025.
There has been no change to the £10,000 per
annum gross income threshold which means that most self-employed traders and
buy to let landlords will be mandated to comply with MTD for income tax from
April 2024.
Private
providers of coronavirus (COVID-19) testing
The lists of and
information about private providers who have self-declared that they meet the
government’s minimum standards for the type of commercial COVID-19 testing
service they offer has recently been updated.
Tell HMRC about
an option to tax land and buildings
Form VAT1614A has
been updated.
HMRC is creating
new versions of their forms that do not depend on Adobe Reader. Whilst this
work is in progress the following methods can be used to make sure the form
will download or open in Adobe Reader:
Red, amber,
green lists: check the rules for travel to England from abroad
From 4am Monday 4
October 2021, the rules for international travel to England will change from
the red, amber, green traffic light system to a single red list of countries
and simplified travel measures for arrivals from the rest of the world. The
rules for travel from countries and territories not on the red list will depend
on your vaccination status.
COVID-19 and
renting: guidance for landlords, tenants and local authorities
There is updated
guidance following Prime Minister’s statement on the autumn and winter plan.
This guidance
provides advice to landlords and tenants on the provisions in the Coronavirus
Act 2020, and further advice for landlords, tenants and local authorities more
broadly about their rights and responsibilities during the COVID-19 outbreak.
First UK
manufactured rapid tests deployed across England
Rapid COVID-19
tests made by SureScreen in Derbyshire are the first UK-made lateral flow
device (LFD) to get the green light for supervised testing. Rollout of
SureScreen tests will support the testing of university students as they return
to campuses and lecture theatres. The first UK-manufactured rapid tests –
otherwise known as lateral flow devices or LFDs – are being rolled out to
universities across England.
Click
here for more details about the C19
resources and updates available to 2020 Members.