Green Vehicles

With the news dominated by COVID 19 and the grants and funding available to help through the pandemic, the initiative on electric cars may have been missed or overlooked.

The pandemic has made us be more aware of our environment. Now we want to look at ways that the environment can be protected and rebuilt. We have seen more wildlife during lockdown and many of us have taken to greener ways of travelling around This may be walking, running and cycling. We are enjoying the countryside after the release from lockdown.

Which leads us to the governments initiative to ban anything but electric cars by 2040. This is still in place. Our choice on electric cars is increasing with more and more options to choose from. They are also getting better in that the electric range is increasing all the time.

Green Vehicles Government Incentives

The government currently offers a £3500 incentive off the price for an electric car. Zero emissions cars costing less than £40,000 are also exempt from paying road tax.

There are also significant company car P11D benefits for electric cars registered after 6th April 2020.  For electric cars, the Benefit In Kind rate is 0% for the 2020/21 financial year; previously it was 16% for the 2019/2020. This rate increases based on the vehicles mileage range.

If we look at a Nissan leaf this could save you almost £5000 in tax for the 2020/21 tax year.

Look here for full details of the company car tax rates. This is for vehicles registered after 6th April 2020.

Green Vehicles a personal perspective

Why not look into the benefits of an electric car and contribute to improving the environment?

From a personal point of view we are currently on our second electric car and we love them, they are quick reliable and cheap. Both vehicles were supplied by Bowker BMW in Preston. We benefited from the government grant on the car purchase and a grant on the installation of a charging point. So if you want a first hand impression of the electric vehicle connect on LinkedIn.

As a company it is also possible to install charging points at your company premises. Their use could then be charged out to other electric car users. This may provide a modest income but certainly a return on your investment.

For details of tax rates applicable to various cars and how it would affect your personal and company tax bills please contact us for further information [email protected] or call 01942 322767

Time to Mask Up

Monday is the day. From the 8th August visitors arriving at Vermont House will be required to wear a face covering. This is in line with changes in Government guidance. All our arrangements remain the same as we continue to work safely whilst continuing to provide services to our clients.

Please remember to book an appointment in advance to deliver and collect books and records.

Meeting and consultations remain online or over the phone.

Only one visitor to appointment.

Time to mask up

Overclaimed COVID grants

Taxpayers who have received CJRS or SEISS grants are urged to doublecheck their entitlement as the 90 day period to inform HMRC of any overclaimed amounts is now law.

Finance Act 2020 includes legislation that the Coronavirus Job Retention Scheme (CJRS), Self-employment Income Support Scheme (SEISS), Coronavirus Statutory Sick Pay Rebate Scheme and coronavirus business support grants are taxable. As well as including HMRC powers to recover grant payments to which the taxpayer is not entitled and penalty provisions.

HMRC has published guidance on how to repay overclaimed grants. This guidance confirms that the onus is on the taxpayer to notify HMRC if they have overclaimed a CJRS or SEISS grant and this must be done by 20 October 2020 or 90 days of receipt of the grant, whichever is the later.

Internet links: CJRS guidance SEISS guidance

Chancellor asks OTS to review capital gains tax

Chancellor Rishi Sunak has asked the Office of Tax Simplification (OTS) to carry out a thorough review of capital gains tax (CGT).

In a letter to the OTS, the Chancellor requested that the independent office review CGT and aspects of the taxation of chargeable gains in regard to individuals and small businesses.

Mr Sunak requested that the review identifies and offers advice on the opportunities to simplify the taxation of chargeable gains to ‘ensure the system is fit for purpose’.

In the letter, the Chancellor said that he would be interested in proposals from the OTS on the regime of allowances, exemptions, reliefs and the treatment of losses within CGT, in addition to the interaction of how gains are taxed compared to other types of income.

The OTS has published a call for evidence in the form of an online survey, which seeks views on CGT. The OTS wants to hear from businesses, individuals, professional advisers and representative bodies about which aspects of CGT are complex and difficult to get right, as well as suggestions on how the tax can be improved.

Internet links: GOV.UK publications letter

Wales reduces LTT rate

On 27 July, the Welsh government reduced the rate of Land Transaction Tax (LTT) following the cuts made to SDLT and LTT across the rest of the UK.

LTT is payable by the purchaser of residential or non-residential property occurring in Wales.

From 27 July 2020, the starting threshold for residential LTT rose from £180,000 to £250,000. This applies until 31 March 2021. The tax reduction does not apply to purchases of additional properties, including buy-to-let and second homes.

The Welsh government predicts that around 80% of homebuyers in Wales will pay no tax when purchasing their home, and that buyers of residential property who would have paid the main rates of LTT before 27 July will save £2,450 in tax.

Rebecca Evans, Welsh Minister for Finance, said:

‘These rates and thresholds have been set so they more closely reflect the property market in Wales and will ensure that we retain a progressive regime that expects those with the broadest shoulders to contribute a larger share in tax.’

Internet links: Welsh government website written statement

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