Six priorities for businesses (and their accountants) in 2021

▤ Summary

Policy changes regarding IR35 in the private sector, the Making Tax Digital (MTD) updates, coupled with broader business trends such as flexible working and a strong focus on a green economic recovery, will all be important in the new year. Here are six key areas business owners need to prioritise over the next few months: Crunch time is fast approaching for the UK’s departure from the European Union, and Brexit updates will be fired off in quick succession in 2021 as details get ironed out. In April 2021, the government will implement new IR35 reforms that will transfer responsibility from contractors to large and medium companies to assess IR35. Under the legislation, if a contractor is engaged through personal service companies (PSCs) and assessed as inside IR35, they will need to pay the same income tax and NICs as if they were employees. Sustainability, which will be a big focus point in 2021, includes social responsibility and how a company treats its employees and gives back to the community.

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