UK Taxes. Digital Service Tax. Cryptocurrency. Cryptoassets. Business Tax. Personal Taxes.

HMRC issued it’s updated Digital Service Tax guidance material today in which it confirmed that cryptocurrencies are unlikely to meet the definition of financial instruments, commodities or foreign exchange and will therefore, not be exempt from the Digital Services Tax.  For further information, please click: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto48000

This means that exchanges dealing in crypto assets will be subject to the 2% digital services tax on their revenue.

HMRC has confirmed that it will issue ‘nudge letters’ to known UK resident crypto-asset investors who it believes may have underpaid tax on their cryptocurrency transactions.

Therefore, if you have used, bought or sold crypto-assets between 6th April 2020 and 5th April 2021, you should check whether or not you have a reporting obligation to HMRC.

Although the letters are not being sent out to non-UK domiciled individuals, this does not mean that HMRC’s view on the situs tests for crypto-assets has changed.    For further information on the location of crypto assets please click: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual/crypto22600

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Income Tax Deadline. Personal Taxes. Tax Returns for individuals and Directors. Self Assessment. Sole Traders.

The Revenue Commissioners acknowledge the on-going tax compliance efforts by taxpayers and agents and in light of the current Covid-19 developments, the Pay and File deadline for ROS customers has been extended to Friday, 19th November at 5.00pm.  As you’re aware, if you earn income as a self-assessed individual, a sole trader, a proprietary Director, or even if you are an employee but generate income in addition to your PAYE employment, you must complete and submit an annual self-assessment tax return within the deadline, to avoid interest and penalties.

If, however, you don’t manage submit your Form 11 Tax Return within deadline, you will be liable to the following late filing surcharges:

• If you submit your return between 31st October and 31st December, late filing will incur a penalty of 5% of your total tax due, up to €12,695.
• If you submit your return after 31st December, the late filing penalty will increase to 10% of your total tax liability, up to €63,485.

For full information, please follow link: https://www.revenue.ie/en/tax-professionals/ebrief/2021/no-2112021.aspx

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

UK Taxes. Northern Irish VAT. E.U. VAT. VIES. Intrastat. Mini One Stop Shop. Triangulation.

The VAT rules for goods and certain services traded with Great Britain will change from 1st January 2021.   From 1st January 2021, Northern Ireland will continue to follow the EU’s VAT rules in relation to goods. However the UK VAT rules will apply for services.  As a result, from 1st January 2021 Northern Irish VAT registered businesses will be required to follow a dual VAT regime.

From 1st January 2021 supplies of goods from Ireland to Great Britain will be regarded as exports while goods purchased from Great Britain and delivered into Ireland will be treated as imports.  Up to 31st December 2020 such movements are treated as intra-EU dispatches or distance sales.

What does this mean for trading between Ireland and Great Britain?

1. Supplies and movement of taxable goods between Ireland and the Great Britain are subject to the Value-Added Tax rules on imports and exports.  it will no longer be possible to apply the VAT zero rate to the export of goods to Great Britain if the customer is Irish established and the customer arranges the export.

• You do not have to report details of trade with the UK (excluding Northern Ireland) on the Intrastat system or VAT Information Exchange System (VIES).
• You do have to report details of trade with Northern Ireland on the Intrastat system and VAT Information Exchange System (VIES).
• Agreed EU simplifications, such as triangulation, do not apply to transactions involving Great Britain (GB).
• The Mini One-Stop-Shop (MOSS) system does not apply to sales to the UK. Therefore, you may need to register for VAT in the UK in respect of such sales.

For imports, the postponed method of accounting for import VAT should apply to goods imported into Great Britain.  This means that import VAT will not be due at time goods are imported; instead it can be accounted for in the next VAT return. This will also apply when goods are imported from outside the EU and could result in significant cash flow savings for the importer.

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.