Insights

Top Tax New Year’s resolutions

As the year draws to a close, we start to think back about the ups and downs and the year ahead and what could be. This year has been unlike any other in our living memory, and has encouraged some to dig deeper and make more changes in their lives than ever before.

Many people make promises to themselves, New Year’s Resolutions – in the hope to do better, be better, live better. With this in mind, we have asked some of our Tax Team for their Tax New Year’s Resolutions and Tips.

Catherine Heyes – Partner in our Corporate Tax Team

Businesses have had a lot to contend with in this year of Covid-19. In many cases, plans for the year have had to be cancelled or drastically modified. While the UK government has made an effort to support businesses across many sectors, there are plenty of businesses still coming to terms with the new landscape, and with an unclear future, it is even more critical to understand and take advantage of any opportunities out there.
  • Plan ahead for any forthcoming transactions; ensure your tax team are the first people to know rather than the last.
  • Keep abreast of the constantly changing HMRC and government schemes and requirements to ensure you maximise any that might benefit you.
  • Aim to submit your company tax return within 2-4 weeks following submission of the financial statements and not at the deadline, avoiding penalties and related additional costs.

Diana Lancaster – Manager in our Personal Client Team

While circumstances have changed for many of us, the need to keep on top of your personal affairs has never gone away and in some ways is even more important in the current climate.
  • Review your will every year to take account of changes in circumstances and legislation.
  • Make the most of your ISA allowance.
  • Speak to your PKF tax advisor as soon as you are thinking of selling a UK residential property, due to the new reporting requirements.
This year has been unlike any other in our living memory, and has encouraged some to dig deeper and make more changes in their lives than ever before.

Brenda Hu – Assistant Manager in our Global Mobility Team

2020 has been such an unusual year for people and businesses all around the world and particularly in the field of global mobility, the COVID pandemic has greatly impacted the way businesses are being run.

We have seen many cases where individual employees are working in places outside of their standard work location, either due to the COVID imposed travel restrictions or due to personal preference. These relocations have tax and social security implications and in some cases payroll and permanent establishment issues as well.

There are also many positive changes from the pandemic. Many countries’ have responded with special tax relief and financial support for individuals and businesses impacted by the pandemic. There have been relaxations of tax residency rules in some cases because of the travel restrictions and quarantine rules.

‘Working from home’ has become the new norm which has opened doors to businesses saving travel costs and hiring individuals in remote locations. The workforce has become even more ‘global’ because of the challenges. As a result, we are working with our global PKF colleagues closer than ever to support our clients.

2021 is going to be another year of challenges and opportunities. New rules for businesses and citizens as a result of Brexit will be effective from 1 January 2021. Immigration will be a particularly hot topic in 2021 as individuals will need to obtain work visas for business travel between the EU and the UK. There are also uncertainties around how social security will be dealt with for these individuals.

To make sure you are prepared for the New Year, here is a list of things to think about:

  • Are you keeping track of employees who are working remotely?
  • How long have they been staying in their current location?
  • Might this create a host country tax and social security liability or is treaty relief available?
  • Is there any payroll requirement in the host country or any payroll withholding relief available in the home country?
  • For senior employees working remotely, might this create a Permanent Establishment for the business in a country? Could this then be an opportunity to expand the business into a new jurisdiction?
  • EU nationals who are working in the UK will need to apply for the EU Settlement Scheme if they haven’t done so already
  • UK nationals working in the EU may need to apply to be a resident in the country that they are living in (again if they haven’t already!) and check what they needs to do in order to continue to access healthcare 
  • Future business travellers between the EU and the UK will no doubt also need to consider the cost and time required to obtain visas