Happy New Year round-up
We are now two years into the COVID-19 pandemic and the virus is showing a remarkable ability to adapt.
In its latest form, the so-called Omicron variant, it is proving to be more transmissible and successful at seeking out new hosts.
If we have learnt anything from the experience of the past two years of anxiety and disruption it’s that adaptability is a key response. Included in this newsletter are tips to stay ahead of these challenges from a business perspective.
Unfortunately, the need to safeguard the NHS means that our entertainment and hospitality trades will again be asked to bear the brunt of COVID-19 related disruption strategies.
It will be interesting to see, if in the coming year, government is again drawn into providing furlough or similar grants to sustain affected small business employers and the self-employed.
With inflation rising, currently 5.1%, Rishi Sunak will be scratching his head as printing money to fund further support is directly opposite to his Autumn Budget claims that he is now focussed on repaying government debt, and this largesse could fuel further inflationary pressures.
Lockdown survival tactics
We have listed below a number of ideas that might ease your progress through any continuing COVID-19 related disruption during 2022.
The following comments are not advice. Every business is different so please call if you have concerns due to a reduction in trade this year.
- Mothball investment plans. Could you defer decisions on buying that new car or other equipment for your business. In a year’s time the economy may have had a chance for a more sustainable recovery that would make more productive use of your acquisition.
- Discuss a hiatus in pensions investments with your pension’s advisor.
- Agree an instalment plan with HMRC to clear any current or future Income Tax or Corporation Tax liabilities.
- Reduce stocks of goods. If turnover falls due to future lockdown activity, reducing stocks will ease pressure on cash-flow and release storage space.
- Negotiate a reduction in hours with your staff rather than laying people off. This may be a solution to keeping teams together.
- Consider your staff as a service option if they become under-employed by reduced activity. i.e., sell their time to firms who need periodic, additional support but don’t want to commit to taking on a full-time worker.
- Clear out under-utilised office or production space and offer to sub-let on short-term lease arrangements.
- Hire out under-utilised plant.
- Defer any expenditure that can be safely delayed for a year without unduly affecting your ability to trade.
As soon as you become aware of threats to your future trading, take time out to formally plan a survival process.
Time to dust-off those online shop plans?
Do you have half-completed plans to open an online-shop this year?
Even if you have never considered internet trading, could this be an option for 2022?
If you are selling goods, creating a web-based sales platform will vastly expand your reach to willing buyers.
Combined with effective social media and other marketing activity this may be an effective hedge against future dips in the wider economy.
If you supply services, perhaps you could create online resources to be purchased and downloaded from your website.
Do you have a hobby that you could expand into a part-time business selling goods online?
It isn’t necessary to build your own website to do this. There are a number of ready-made sales platforms like Etsy.com.
You should be able to trial this, and see if the idea has legs, without giving up your day job.
We can help
January is tax payment time
As you will see from the tax diary notes this month, there are two significant tax payment deadlines this month.
- 1 January 2022 - Companies with a 31 March 2021 year end date will need to settle their Corporation Tax payment on or before this date.
- 31 January 2022 - Taxpayers who are subject to self-assessment will need to pay any underpaid tax and NIC for 2020-21 plus any first payment on account for 2021-22.
Clients reading this reminder who need to know how much to pay or reference numbers to quote should contact us asap.
And if you cannot make payment in full, on the due date, you could contact HMRC to ask for more time.
You can make your own Time to Pay arrangement using your Government Gateway account, if you:
- have filed your latest tax return
- owe less than £30,000
- are within 60 days of the payment deadline
- plan to pay your debt off within the next 12 months or less
Call the Self-Assessment helpline if you cannot make your own Time to Pay Arrangement online, for example, if you owe more than £30,000 or need longer to pay.
Self-Assessment Payment Helpline
Telephone: 0300 200 3822
Monday to Friday, 8am to 4pm
Tax Diary January/February 2022
1 January 2022 - Due date for Corporation Tax due for the year ended 31 March 2021.
19 January 2022 - PAYE and NIC deductions due for month ended 5 January 2022. (If you pay your tax electronically the due date is 22 January 2022).
19 January 2022 - Filing deadline for the CIS300 monthly return for the month ended 5 January 2022.
19 January 2022 - CIS tax deducted for the month ended 5 January 2022 is payable by today.
31 January 2022 - Last day to file 2020-21 self-assessment tax returns online.
31 January 2022 - Balance of self-assessment tax owing for 2020-21 due to be settled on or before today unless you have elected to extend this deadline by formal agreement with HMRC. Also due is any first payment on account for 2021-22.
1 February 2022 - Due date for Corporation Tax payable for the year ended 30 April 2021.
19 February 2022 - PAYE and NIC deductions due for month ended 5 February 2022. (If you pay your tax electronically the due date is 22 February 2022)
19 February 2022 - Filing deadline for the CIS300 monthly return for the month ended 5 February 2022.
19 February 2022 - CIS tax deducted for the month ended 5 February 2022 is payable by today.