ACS is reminding retailers about important changes coming into effect from 1st April that will affect their business.
National Living/Minimum Wage Rates
The National Living Wage is applicable to all workers aged 25 or over. Workers must be at least school leaving age (last Friday in June of the school year they turn 16) to get the National Minimum Wage.
The rates of the National Living Wage and Minimum Wage from 1st April 2019 are detailed below.
- Employee aged 25 and over (NLW rate): £8.21 per hour
- Employee aged 21 and over: £7.70 an hour
- Employee aged 18 to 20: £6.15 an hour
- Employee under 18: £4.35 an hour
- Apprentices: £3.90 an hour
More information about wage rates, including further details on statutory sick pay (SSP) and holiday entitlement are available on the Government website at www.gov.uk/national-minimum-wage-rates
Making Tax Digital
Making Tax Digital (MTD) is changing the way retailers submit their VAT return, requiring them to keep their VAT records digitally and use software to submit returns.
From 1st April 2019, businesses with a taxable turnover above the VAT threshold (currently £85,000) must:
- keep VAT records digitally; and
- use MTD-compatible software to submit their VAT returns
Retailers will need to keep business records digitally from the start of all accounting periods on or after 1st April 2019. No additional information will need to be kept as part of these records. Digital records should include for each supply, the time of supply (tax point), the value of the supply (net excluding VAT) and the rate of VAT charged. They should also include your VAT Registration Number and details of any VAT accounting schemes you use.
ACS has produced guidance for retailers to help them prepare for submitting quarterly tax updates under MTD. The guide is available on www.acs.org.uk/advice/making-tax-digital
Business Rates Discount
During the Budget on October 29th, Chancellor Philip Hammond announced that businesses with a rateable value of under £51,000 would receive a 1/3 discount on their rates bills.
The guidance published by MHCLG confirms that the 1/3 discount will be available to eligible businesses for the years 2019/20 and 2020/21. The guidance recognises the inclusion of petrol forecourts and post offices within the definition of businesses that are ‘wholly or mainly being used as shops, restaurants, cafes and drinking establishments’. However, ATMs are not included within the definitions and are subsequently not eligible for the discount.
The business rate relief is automatically allocated by Local Authorities (after any existing mandatory and discretionary reliefs) and included in your rates bill issued early in 2019. If you believe you are eligible for relief but have not received the discount please contact ACS for a template letter to send your local authority via email at [email protected]
