September Newsletter

September Newsletter

Newmarket Cricket Club promoted to top flight after first season

As mentioned in previous newsletters, we are a very proud sponsor of Newmarket Cricket Club, so you can imagine our delight to read that the club has after their first season, been promoted to division 1.

The club formed less than a year ago in October 2020. Forming during a pandemic meant that by December 2020 the only four players who had signed to the club, couldn’t even meet each other due to the pandemic restrictions.

Fast forward to today and with 33 senior members, they have not only won promotion from division 2 of the Huntingdonshire and Cambridgeshire Cricket League to division 1, but they have also managed to finish joint top of the league with Old Leysians, finishing with an incredible 397 points. We have no doubt that their success will continue in division 1 and we can’t wait for the new season to start! Up the stampede!

 

Contactless limit to increase to £100 from 15 October

Currently anyone with a contactless card can spend £45 without needing to enter their PIN however, from 15 October this is increasing to £100. Contactless card payments were introduced in 2007 with a transaction limit of £10. In 2012 the limit was raised to £20 and then to £30 in 2015. During the pandemic, customers were encouraged to use contactless and cashless methods of payment to reduce close contact between staff and customers which saw a further contactless limit increase to £45.

In March 2021, the Treasury and Financial Conduct Authority (FCA) made the decision to increase the limit to £100 meaning that from 15 October, the limit will have more than doubled and it will be the second increase to the contactless limit in less than two years. The decision to increase the limit further is said to have been made to keep up with how people prefer to pay and to help aid the recovery from the pandemic. However, some people are calling the increase a 'thief's dream'. 

Card users will be able to make £300 worth of transactions without having to insert their card & enter their PIN. Currently a PIN is required after £130 worth of contactless spending.

If criminals take advantage of the increased spending limit, there is potential for thefts to rise. Although contactless methods cannot be used to withdraw cash, if criminals have access to a contactless card (which has not been reported lost or stolen by the card owner) they can tap the card and spend up to £300 as mentioned, without needing to enter a PIN.

Aside from increased fraud risk worries, there is the conversation about reckless spending. We have long been aware that people spend more money using debit & credit cards than cash. The pandemic has put a financial strain on many people and spending up to £100 with just a tap of a card may lead to consumers incurring additional debt at a time where so many are already struggling.

 

Temporary 5% VAT rate on tourism and hospitality to end 30 September 

The temporary 5% VAT rate that has applied to supplies made in the tourism and hospitality sector since the start of the pandemic is to come to an end at the end of this month. The rate will then increase to 12.5% from 1 October until 31 March 2022 when it reverts to the standard rate.

For those businesses operating in this sector this will mean an amendment to their accounting software and possibly to their prices. Note that the 20% rate continues to apply to the sales of alcohol.

Where deposits and other payments are taken before 30 September 2021 the 5% rate would apply to that supply as that would be the tax point for the supply.

 

Furlough; the final furlong

September is the last month for the Coronavirus Job Retention Scheme (CJRS) furlough grants. The Government are pulling the plug on support to employers for furloughed staff at the end of September as they anticipate that the economy will be back to normal by October.

The grant claims for employees furloughed in the month of September are 60% of the employee’s usual pay up to a maximum cap of £1,875. Make sure that you make your final claims for the month of September by 14 October and make any adjustments by 28 October 2021. 

The end of furlough may be the trigger for many businesses to assess their staffing levels going forward and many may be considering making the tough decision about which staff to make redundant. 

 

DIARY OF MAIN TAX EVENTS

SEPTEMBER / OCTOBER 2021

Date

What’s Due

19 September

PAYE & NIC deductions, and CIS return and tax, for month to 5/9/21 (due 22 September if you pay electronically)

1 October

Corporation tax for year to 31/12/20 unless pay by quarterly instalments

5 October

Deadline for notifying HMRC of chargeability for 2020/21 if not within Self-Assessment and receive income or gains on which tax is due

14 October

Final date for CJRS Furlough grant claims for September 2021

19 October

PAYE & NIC deductions, and CIS return and tax, for month to 5/10/21 (due 22 October if you pay electronically)