Chartered Accountants & Registered Auditors


+44 (0) 28 90325050 | www.muldoon-accountants.co.uk BUDGET 2021


The Chancellor presented his Budget on Wednesday 3 March 2021. This article focuses on some of the issues likely to affect your business.


Corporation Tax Rates The main rate of 19% corporation tax will remain until 1 April 2023, when it will increase to 25% for companies with profits over £250,000. The 19% rate will become a small profits rate payable by companies with profits of £50,000 or less. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief, providing a gradual increase in the effective corporation tax rate.


Extended Loss Carry Back For companies with an accounting period ending between 1 April 2020 to 31 March 2022 and for unincorporated business with an accounting


period ending in the tax years 2020/21 and 2021/22, the trading loss relief carry back period will be extended from one year to three years. This means businesses incurring losses may carry trading losses back for relief against profits of earlier years to get a repayment of tax paid.


Electric cars A favourable tax regime exists for cars with low emission. The following outlines, in summary, the associated tax advantages of a low emission car.


If you were to opt for an electric car, this would attract a benefit-in-kind of 1% of the list price. Therefore, a car with a list price of £75,000 would have a taxable benefit of £750, with an income tax liability of up to £337 assuming a marginal rate of income tax of 45%.


As a comparison, the income tax liability on cars with high emissions, could attract a benefit-in- kind of up to 37% of the list price. Therefore, a car with a list price of £75,000 would result in an income tax liability of £12,487. This is an increase of £12,150.


Further benefits include: 1. Provision of electricity by employers for charging full electric company cars is not taxable;


NPAIN FOCUS


The National Pharmacy Association is celebrating its 100th birthday this year with a series of activities including special recognition for some of its longest-standing members. We want to thank all our members in Northern Ireland for being with us on our journey to date – and we look forward to meeting your ever-changing needs long into the future. Members can visit our dedicated centenary web page at www.npa.co.uk/100-years.


Pharmacy stories


As part of the Association’s centenary celebrations, NPA members have been telling us about their life and times in community pharmacy. Here is the story of McCaughan Chemist, which was established in Ballycastle more than 60 years ago.


Now in its eighth decade, McCaughan Chemist has grown to become an integral part of its community. Frank A McCaughan established the business in 1959 in the rural coastal town of Ballycastle.


38 pharmacyinfocus.com


Over the years, the business has grown to accommodate two further pharmacies in the local area. Frank’s eldest son, James, joined the family business after qualifying as a pharmacist himself.


‘When I was a child, the shop was in a premises that was one half of a terraced building,’ says James.


‘My father took every opportunity to reinvest in the business and this allowed for the original premises to double, and eventually quadruple in size. When I came home to join the business, we integrated other professional services such as a physiotherapist and a chiropodist and then added the Post Office.’


James eventually took the reins of the pharmacy in 2000 and now employs twelve staff, alongside six part-time staff at three different sites.


Regarding his membership of the NPA he says: ‘We've had instances of dispensing errors and a tricky situation where I needed


2. A corporate tax deduction will be available on the cost of the car; and 3. You need to take as much from your company to pay any personal car loan, further saving income tax.


Job Retention Scheme (JRS) JRS has been extended to 30 September 2021. The level of grant available to employers under the scheme will stay the same until 30 June 2021.


From 1 July 2021, the level of grant will be reduced and employers will have to contribute towards the cost of furloughed employees’ wages.


For a full round up of the budget and other announcements including the extension to the SDLT nil rate band visit our website at https://www.muldoon- accountants.co.uk/news/budget.


If there is anything in this article that affects you - or somebody you know - please speak to Steven McVitty for independent professional advice.


Anne McAllister Northern Ireland Representation Manager


legal advice from the NPA. With the support of the NPA, we were completely vindicated and the legal team at the NPA were brilliant in handling the matter.’


James also has Anne McAlister, the NPA’s Northern Ireland manager, on hand to talk to if he ever needs advice or guidance.


‘She's a fantastic resource for pharmacists in Northern Ireland,’ he adds. ‘She has been excellent in helping us prepare for the COVID vaccination roll-out here.’


NPA members who would like to share the history of their own pharmacy, as part of the NPA’s centenary celebrations, are invited to contact press@npa.co.uk.


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