Our free trade deal gives us a clear framework for trading with the EU. Everyone who trades with EU member states must follow the new rules to keep their business moving.
In this week’s letter, I want to focus on the range of Government support available for businesses who send goods to the EU.
The Government will continue to provide support and guidance for businesses exporting to the EU and the rest of the world, to make this process as simple as possible.
Rt Hon Kwasi Kwarteng MP
Secretary of State for Business, Energy & Industrial Strategy
New rules for businesses
You must declare any goods you send to the EU, providing details about what you’re sending and what it’s worth, using a customs declaration form. You can get a customs intermediary to help you do this.
If you’re sending goods using a fast parcel operator or express courier, they’ll declare the goods for you, using the information you provide. This option could be beneficial for smaller businesses who aren’t looking to get a contract with a customs agent.
If you’re sending goods by post valued at £900 or less, Royal Mail will give you a customs declaration sticker to fill in and attach to the parcel. For goods worth more than £900, Royal Mail will submit the customs declaration for you, using the information you provide.
Department for International Trade’s Check How to Export Goods online tool, where you can find information on the UK border, and duties and customs procedures for over 160 markets around the world.
VAT guidance about the conditions for zero rating VAT on the goods you export, and what you should do when you export goods in specific circumstances.
The free Trader Support Service that you can sign up to, if you move goods between Great Britain and Northern Ireland.
An online guidance package developed by DEFRA with HMRC to guide fish exporters through each step of the export journey. There’s a range of information and support available to help you make sure you’re following the new rules including the MMO One Stop Shop.
already here for VAT registered businesses with turnover > £85k
is set to arrive in 2021 for Residential Landlords
Gains – tax payments on account!
April 2020 it appears as though capital gains tax could be payable on account
within 30 days of a disposal. Please
keep me informed, just in case.
charges for Landlords:
April 2020 charges (including re-mortgage fees and interest) will be restricted
by 100% (currently 75%)
are looking to re-mortgage then acting soon could save you some pennies.
me if you need referring to an adviser.
councils are considering a 90 day Air B’n’B rule where you need a licence to
let for more than 90 days a year.
– “Personal Service Companies” PSC:
April 2020 the following scenario will come into force when:
Business contracts to -> “Agency”
subcontracts to -> “Subbie” – The PSC
Business will issue an SDS “Status determination statement”.
is possible this will say that you are an Employee of the Agency (i.e. you
cannot use your limited company)
is rumour of several work arounds – please do not sign up to anything involving
Offshore arrangements and especially not anything that involves a Loan
Arrangement without running it past me first. Remember if it sounds too good to
be true it almost certainly will be.
There is no definition of a bare trust in the income tax legislation. Put simply, a bare trust is one where the beneficiary has the absolute right to the assets and income, but the trustees are the legal owners effectively holding the property as nominee.
A bare trust enables a person to hold the investment in a trust for the benefit of the named beneficiary and, as trustee, keep an element of control over the investment if the named beneficiary is a minor. The bare trust could be as basic as a bank or building society trustee account in the name of the person who is holding the funds as trustee for the individual.
Income arising from the assets of the bare trust is normally taxable on the beneficiary. However, for bare trusts created on or after 9 March 1999 by parents for their minor child (under 18 and unmarried) where the income on the gifts between the said parent and beneficiary of the trust is £100 or more, the income is taxable on the parent (s629 ITTOIA 2005).
Under self-assessment, trustees of bare trusts do not have to complete tax returns, but the beneficiaries must, if required, declare bare trust income and gains in their personal tax returns and account for any income due tax or capital gains tax. If, however, bare trustees wish to make a self-assessment return of income, they may do so, but may not include capital gains or capital losses, such gains and losses must be notified by the beneficiaries in their personal returns (See HMRC’s Self Assessment Manual SAM123020). If the trustees and all the (adult) beneficiaries of a bare trust wish to report the income in this manner, they are required to notify the trust district dealing with the trust’s tax affairs, and to follow the same course consistently year on year. Either way, the obligation to notify HMRC of tax due on trust income and gains remains that of the beneficiaries (or their parents/guardians whilst they are unmarried minors).