Building a future in uncertain times
August 2021 Newsletter

Welcome to our newsletter. We hope it finds you safe and well.
Do get in touch if we can be of assistance with any of the issues raised
SEISS - Get ready to claim the fifth grant
HMRC has issued new guidance on the Self Employed Income Support Scheme and eligibility for the fifth grant.
Claimants will need state turnover if they traded in 2019 to 2020 as well as any of the other tax years listed.
The fifth grant will cover the period between 1 May 2021 and 30 September 2021. 
There’s no doubt SEISS has proved a lifeline and Barringtons has helped many self-employed people understand and calculate their taxable grant. We are on hand again to help.
For more information please see here 

Making Tax Digital - the next phase
From April 2022, Making Tax Digital (MTD) requirements will be extended to the approximately 1.1m VAT registered businesses with taxable turnover below the current VAT threshold that are not currently required to operate MTD for their VAT reporting and record keeping obligations.
The next roll-out will be the introduction of MTD for income tax which is scheduled to start in April 2023.
The need to keep records in a digital format and report information quarterly is set to apply to unincorporated businesses and property landlords with gross income in excess of £10,000 a year.
VAT registered business making taxable supplies above the £85,000 registration threshold have used the system since April 2019.
For everyone else, now is the time to get ahead. Want to know more about cloud-accounting and your obligations?
Barringtons are Xero Platinum Partners and have helped many businesses switch to this time-saving system. 

Contact us t. 0800 019 1744 e:
For on MTD visit here

Claiming company loss relief
Where a company makes a trading loss of no more than £200,000 in an accounting period it is now possible to claim relief for that loss even though the corporation tax return CT600 has not been submitted.
This will enable the company to carry back the loss to earlier years and obtain a repayment of tax previously paid.
HMRC will however need evidence of the loss to support the claim, in particular a PDF of the company’s management accounts for the period. In determining whether the loss is no more than £200,000 the company is required to claim all available reliefs, in particular capital allowances.
Where companies are members of a group the £200,000 limit applies to each individual company.

Note that for members of a group the £2,000,000 limit on the temporarily extended carry back of trade losses applies to the group as a whole. The extended carry back allows companies to carry back trading losses two further years in addition to the normal one year carry back.
Losses carried back will result in a repayment of corporation tax at 19% whereas if carried forward against profits the losses may save tax at up to 25% after April 2023.
Speak to us about the best use of trading losses.
Delaying declarations for EU goods brought into GB 

Businesses can delay sending HMRC full information about goods by up to 175 days before the deadline of 31 December 2021. After that full customs declarations must be made at the point of import for all goods.
For goods brought into Great Britain (England, Wales and Scotland) from the EU, you (or someone who deals with customs for you) may be able to delay sending HMRC the full information about your goods by up to 175 days after import.

However, you cannot delay declarations and must follow the normal rules for making an import declaration if either:
•             your goods are controlled
•             HMRC has told you to because you have a poor compliance record

Import VAT - Postponed Accounting
Most VAT registered businesses in possession of a GB EORI are able to use postponed VAT accounting (PVA) to account for import VAT on their VAT returns.
Accounting for import VAT on your VAT Return means you will declare and recover import VAT on the same VAT Return, rather than having to pay it upfront and recover it later.
You can get your monthly postponed import VAT statement which will show the amounts of import VAT to declare on your VAT Returns. Note that recovery of import VAT is subject to meeting the standard rules of recovery.
See: Check when you can account for import VAT on your VAT Return - GOV.UK (

For more information contact Colin Woodward our specialist in VAT, duties and other indirect taxes e:

Employers: It's time to check minimum wage rates
HMRC has issued a statement urging students and other summer workers to check that they are being paid the correct National Minimum Wage (NMW) rates.
Most workers should be paid the correct NMW and National Living Wage rates.
This includes temporary seasonal staff on zero-hour and short-term contracts working in bars, hotels, shops and warehouses.

National Minimum Wage hourly rates from 1 April 2021 are:
£8.91 – age 23 or over (National Living Wage)
£8.36 – age 21 to 22
£6.56 – age 18 to 20
£4.62 – age under 18
£4.30 – apprentice

The two most common causes of minimum wage underpayment are deductions and unpaid working time. For example expenses for tools or equipment needed for the job, cost of uniform or clothing, travelling time between work locations and training time.
Employers who do not pay the NMW can be publicly ‘named and shamed’ and those who blatantly fail to comply can face criminal prosecution.
See our blog:

Furlough scheme starts to wind down
The Coronavirus Job Retention Scheme (CJRS) was introduced in spring 2020 to stop people being laid off by their employers during lockdown.
Initially the government paid 80% of the wages of people who couldn't work, or whose employers could no longer afford to pay them - up to a monthly limit of £2,500.
There’s been a sliding scale since and on August 1 the government set the bar at paying 60% of wages up to a maximum cap of £1,875.
CJRS will draw to close on September 30.
Calculating 'flexible furlough' can become very complicated so if you're unsure in the meantime let Barringtons Payroll take the strain -
Need help with any aspect of 'Sick Pay' or Payroll contact us
T: 01782 713700

Say hello to... Louise Follwell

Barringtons has welcomed Louise Follwell as Audit Manager based in our Newcastle office. Mum-of-two Louise has built up a wide range of experience over the last 15 years working directly for SME's and providing the financial function for companies which include management accounts, VAT Returns, Payroll and CIS, to working in accountancy practices in both Internal Audit for five years, specialising in the NHS, to more recently working in External Audit.  
Her work at Barringtons is varied - from full audits for large corporations to overseeing stock takes for small business. Checking and verifying figures for companies is one thing but while specialising in audits for the NHS, her work often entered into the macabre with figures required for the morgue and path lab!
She says: “It was quite eye opening overseeing the path lab stock take of body parts and biopsy samples.  As well as being whisked out of the morgue as a new body was bought in to be dealt with at the hospital!”
Away from work, animal-lover Louise lives in Cotes Heath with a menagerie of eight chickens, two cats and one black Labrador puppy Max. She’s married to John, with two children aged nine and seven and loves walking and country life.
And finally: Farewell to long-serving Damien

This month we have said a fond farewell to long-serving Client Services Manager Damien Ball who is retiring after 48 years in the industry.
Father-of-three Damien began his career as an articled clerk with J Paterson Brodie, Burslem office in 1973, where he was involved in accounts production and audits. He moved, to what was later to become Barringtons Limited, in February 1978.
A ‘Burslem boy’ born and bred, Damien is known to many local clients for his expertise and friendly manner.
As he approaches his 67th birthday, he is moving on to spend more time doing what he loves most – time with his family and cycling.
His retirement will also be in harmony as he returns to his choir at St Gregory’s Catholic Church, Longton where he is also Eucharistic Minister.
He says: “Accountancy has become more computerised but it’s still all about debits and credits and supporting clients which we do so well at Barringtons. It’s sad leaving my colleagues after so many years but as a local lad I can always pop in to catch up.”
Damien, who has three sons and two grandchildren, hopes to notch up 100 miles a week on his bike and return, pandemic-permitting, to the village property he has with his wife Clare in France – where he also keeps a push bike!

Contact us:
t. 0800 019 1744

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