Did you know last year more than 30,000 people in the UK did their tax return between Christmas Eve and Boxing Day?

As of writing this, there are only 20 working days left until HMRC's self assessment deadline of 31st Jan 2022. Each year millions of people leave their tax return (self assessment) to the last minute and then stress out if they declared the info correctly and if the tax due is correct.

Statistically the number one worry tends to be if their submission may trigger an HMRC investigation into their tax affairs... death and taxes being the fear we suppose.

Plus in the last tax year due to Covid 19 and lockdown's there were many other sources of income  e.g. council support grants, SEISS (self employed grants), furlough, bounce back loans, universal credit, tax credits etc. Making tax returns more complicated and resulting with higher taxes due for most tax payers.

If your worried we recommend you get in touch with one of our tax experts. Because we have seen a lot more investigations this year than previous years as HMRC starts it claw back to try to shore up the UK government income and focuses even more on tax avoidance and incorrect information.

So if you have not had your 2020/21 (6.4.20 to 5.4.21) tax return (self assessment) completed then you urgently need to get in touch today as the number of working days are fast decreasing and before you know it the time will be gone and you may end up facing badly caclulated tax return paying more tax than you need to or worse a fine by HMRC for missing the deadline.

Contact us today by clicking this link or calling us on the number above. And share this page with your friends and family.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

The 5th SEISS grant

As the UK returns to normal after the Covid 19 pandemic, all government support for sole traders, self employed and small and medium sized business is winding down. Meanwhile HMRC is increasing efforts to maximise tax revenues. In some cases going back several years to find any unpaid taxes and add on interest and fines to the amounts. It use to be the anything under £50 HMRC wouldnt bother to chase but now every pound matters.

The deadline for the 5th SEISS (self employed / self assessment) grant is 30th Sept 2021 only a few days away.

The 5th SEISS grant is different from the previous ones as there are two levels available and the claimant needs to declare how trade as been negatively effected (reduced activity / capacity / demand) between 1st May 2021 to 30th Sept 2021. And requires that the 19/20 and 20/21 self assessments (personal tax returns) be completed.

There is also a relevant basis period applicable and a financial impact declaration (FID). This has caused a lot of members of the public confusion and worry on how to claim for this correctly and not make an incorrect that can be picked up by HMRC and asked to be paid back.

So we at Tax Affinity Accountants are here to help and support everyone who needs help with this regard. We can help complete the paperwork and documentation required to claim the 5th grant without the hassle and time spent trying to work out and worrying if you have declared everything correctly. Contact us via our online form here.

Bounce Back Loans

We have also noticed that a lot of banks are not telling customers clearly about their options (ensured by the goverment) when it comes time to start making repayments for the bounce back loan.  In short you have 3 options before having to make repayments in full when your business and you may not be able to afford to.

1. Changing from a 6 year repayment plan to a 10 year repayment plan. This will drop the monthly amount to pay and with the small interest fee doesn't add much on top of the total amount due considering the extra 4 years time given.
2. You can have at least a 6 month repayment holiday and hold off the payments in full.
3. You can make interest only repayments for at least 6 months. In otherwords the repayments will be very low and only the interest payable for 6 months and no capital or repayment amount for the original loan.

So be careful to ensure you and your business can afford to pay the BBL back before paying back your bank. And if you plan wisely and your bank allows you could use all of the options in turn.

Our company vision is to improve the financial life of every person in the world we are here to help anyone who needs help in these or any other matters. Feel free to Contact Us via our online form.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

The 5th and final (so far advised) grant from the government for self employed people impacted by Covid 19 (coronavirus) is now open and available to claim.

The 5th grant is different from the previous four as there are two levels available and the claimant needs to declare how trade as been negatively effected (reduced activity / capacity / demand) between 1st May 2021 to 30th Sept 2021. And requires that the 19/20 and 20/21 self assessments (personal tax returns) be filed.

There is also a relevant basis period applicable and a financial impact declaration (FID). This has caused a lot of members of the public confusion and worry on how to claim for this correctly and not make an incorrect that can be picked up by HMRC and asked to be paid back.

So we at Tax Affinity Accountants are here to help and support everyone who needs help with this regard. We can help complete the paperwork and documentation required to claim the 5th grant without the hassle and time spent trying to work out and worrying if you have declared everything correctly. Contact us via our online form here.

And because our company vision is to improve the financial life of every person in the world we are here to help anyone who needs help in this matter. So feel free to Contact Us via our online form.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

We have noticed that a lot of tax payers are missing out on claiming the 4th Self Employed grant and wanted to let everyone know not to miss out.

The Self Employed (SEISS) 4th and 5th grants were announced in March 2021 and are supposed to run to the end of Sept 2021.

The 4th grant (April to June) is the same criteria as the previous ones (up to max £7500 of 80% of profits). 

While the 5th grant (July to Sept) will be banded with those who have seen a greater than 30% reduction in income eligible for 80% and those who have seen income fall less than 30% receiving a grant of only 30% (up to max £2,850).

The cut off date for eligibility was 2nd March 2021 so the 19/20 tax return had to be submitted by then. And both will take into account 2019/20 tax returns figures filed. You still need to qualify with over 50% of your income coming from self employment rather than other sources.

Many tax payers are hesitent because they are applying for mortages and remortgages where the lenders are unfairly saying to them they look unfavourably at the grants coming in. And this leads to tax payers being unfairly restricted on eligible grants or many other personal reasons such as divorce or employment.

And because our company vision is to improve the financial life of every person in the world we are here to help anyone who needs help in this matter. So feel free to Contact Us via our online form.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

UK Spring Budget 2021 key points for business owners & SME's

At Tax Affinity we believe in improving the financial lives of every person in the world. Each time the UK treasury government makes budget announcements we spend time reading through the information to help our clients support our clients with the best information to drive their businesses forward even during a down turn.

The key points are listed below for a quick guide:

1. Furlough (CJRS) extended to end of Sept 2021. Originally it was going to end in April 2021. But the 80% value up to £2500 maximum will only last for 2 months and then taper off in July to Sept dropping to 60% up to a £1875 maximum. The employee is still expected to receive the full 80% up to £2500 at the employer’s expense plus NI and tax etc. Therefore each employer will need to calculate how this effect’s their expenses and weigh up the benefits of keeping staff or not. The cut off date for eligibility was 2nd March 2021 a day before the budget was announced. If you are client or would like to be a client contact Tax Affinity to discuss your PAYE options and PAYE expenses.
2.  Self Employed (SEISS) 4th & 5th grants announced running to end of Sept 2021. 4th grant (April to June) will be the same criteria as the previous ones (up to max £7500 of 80% of profits). While the 5th grant (July to Sept) will be banded with those who have seen a greater than 30% reduction in income eligible for 80% and those who have seen income fall less than 30% receiving a grant of only 30% (up to max £2,850). The cut off date for eligibility was 2nd March 2021 a day before the budget was announced. And both will take into account 2019/20 tax returns filed. Still need to qualify with over 50% of your income coming from self employment.
3.  Business rates 100% relief will be extended to 30th June. Then the following 9 months a 66% discount up to a maximum of £2m.
4.  VAT reduction to 5% extended for some sectors to 30th Sept. Then rate will rise to 12.5% for 6 months to 31 March 2022. After that it will return to normal 20%. If you are a client contact us for more information if this applies to you.
5.  Stamp Duty extension of £500,000 nil-rate to 30 June. After this it will return to £125,000 as before. This is accompanied with the 5% small deposit scheme up to a limit of £600,000 which is not restricted to 1st time buyers or new build homes.
6.  Restart Grant of £6,000 for non-essential retail to £18,000 for hospitality, leisure and personal care shops to replace the current monthly grant scheme.
7.  Universal credit £20 increase will be extended to end of Sept 2021 with a separate one-off payment for working tax credits claimants.
8.  Pension lifetime allowance frozen at £1,073,100 until April 2026. State pension will rise by 2.5% next year.
9.  Corporation tax for UK limited companies with profit less than £50,000 will remain in 19% tax band for year beginning 1 April 2022. Profits above £250,000 will attract 25% corporation tax. With bands in between unspecified at this time.
10.  Super deduction of 130% on plant, machinery and main rate assets from 1st April 2021 to 31 March 2023. This will apply to contracts started on or after 3st Mar 2021 and available for expenditure from 1st Apr 2021 to 31st  Mar 2023. Plus losses created can be carried forward.
11.  Carry back losses from 1 to 3 years extended up to max £2million of unused loses in 20/21 and 21/22 tax years.
12.  R&D cap at £20,000 from 1st Apr 21 plus 3 x company’s total PAYE and NIC dues.
13.  Personal Income tax rate will rise from £12,500 to £12,570 and the 40% tax threshold from £50,000 to £50,270 (ie £37,700 at basic 20% rate). CGT allowance remains at £12,300.
14.   Apprenticeship hiring payment rise to £3000 to Sept 2021. Plus fast track visa for hiring overseas staff for tech firms. Meaning a removal of 3rd party endorsement
15.  Recovery Loan Scheme to replace BBL / CBILS etc. Which is a shift from 100% government guarantee to 80% on eligible loans between £25k to £10m for “any legitimate business purpose, including growth and investment”. This is open til 31st Dec 2021.
16.  Annual Investment Allowance of up to £1m is extended to 31st Dec 21.
17.  Road Tax will rise from 1st April 21
18.  VAT deferral scheme extended, vat registered business now have the option to have 11 months interest free instalments between 2021 to 2022 on vat payments. If you don’t take this option you must pay deferred vat by 31st March 2021 for all past vat due. You can opt in between Feb and June 2021 but with fewer instalments. If no arrangement to pay is made you will receive a penalty by HMRC.
19.  Individual ISA limit £20k for 21/22; Junior ISA 9K; Child Trust Fund 9k;

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

The UK Chancellor announced one-off top up grants for retail, hospitality and leisure businesses worth up to £9,000 per property to help businesses through to the Spring.

Businesses are advised to contact their local authority for discretionary grants and Local Restriction Support Grants worth up to from £1300 to £3,000 a month and extension of furlough scheme.

This follows the Prime Minister’s announcement that business will be closed until at least February half-term in order to help control the coronavirus.

The cash payment is accepted by the local authority is provided on a per-property basis to support businesses through the latest restrictions

Chancellor Rishi Sunak also said:

A further £594 million pounds is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses should apply to their Local Authorities as soon as possible.

The new one-off grants come in addition to grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.

The government has also provided 100% business rates relief for retail, hospitality and leisure businesses, £1.1 billion existing discretionary funding for Local Authorities, the furlough scheme now extended to April and 100% government backed loans, extended until March.

More information

• the one-off top-ups will be granted to closed businesses as follows:
• £4,000 for businesses with a rateable value of £15,000 or under
• £6,000 for businesses with a rateable value between £15,000 and £51,000
• £9,000 for businesses with a rateable value of over £51,000
• any business which is legally required to close, and which cannot operate effectively remotely, is eligible for a grant
• the Scottish Government will receive £375 million, the Welsh Government will receive £227 million, the Northern Ireland Executive will receive £127 million
• small businesses in the devolved administrations in the UK should also be able to benefit from other UK-wide measures in the government’s unprecedented package of support for business, including the various business lending schemes (where repayment terms were made easier as part of a Winter Economy Plan), and the extension of the Self Employment Income Support Scheme (SEISS).

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

The Chancellor yesterday announced a raft of new measures to support businesses in the UK. Below are the key points to help you and your business:

Job Support Scheme - to replace the Furlough scheme

• Government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
  
• Employees must do at least a third (33.3%) of their normal hours
  
• Employers will pay staff for the hours they have work
  
• The government and the employer will pay a third (33.3%) each for the hours they can't work
  
• This means someone working a third of their hours would receive 77% of their pay
  
• The government part of the grant is capped at £697.92 per month per employee
  
• All small & medium sized businesses are eligible for the scheme
  
• It is open to employers even if they have not previously used the furlough scheme
  
• The Job Support scheme will run for six (6) months starting in November 2020 and replaces the "furlough" scheme
  
• Basically means the government will pay a maximum of 22% of someone's wages, down from 80% at the start of the furlough policy
  

Example:

If an employee (e.g. Mr Bob Smith) works reduced hours the employer pays for that. And in addition the employer and government pay one third of the lost pay each (up to the cap £697.92).

So if Mr Bob Smith normally worked for an employer at £2,000 a month, and then worked 50% hours, he would get £1,000 normal pay plus £333 extra from their employer and £333 from the government.


Self Employed Support - SEISS Grants

• A grant will be available to those eligible for the Self Employment Income Support Scheme Grant (SEISS) previously ie basically a 3rd SEISS grant payout and possibly a 4th
  
• The grant will cover three months' worth of profits for the period from November 2020 to the end of January 2021
  
• It will cover 20% of average monthly profits up to a total of £1,875 (previously £6750 and £7500)
  
• A further grant may be available to the self-employed to cover February 2021 to the end of April 2021, depending on circumstances
  

Bounce Back (BBL) Loans and Covid (CBILS) Loans - time extended from 6 to 10 years to repay + chance to pay interest only

• Bounce Back Loans will be extended from 6 to 10 years, cutting down monthly repayments by nearly a half per month after the 12 month interest free period - may need to apply to your bank for this
  
• Coronavirus Business Interruption Loan Scheme lenders will also be able to extend the length of loans from the current maximum of 6 to 10 years - may need to apply to your bank for this
  
• Extension of deadline for the government's coronavirus loan schemes to the end of November 2020
  
• Businesses that are struggling can choose to make interest only payments for six months and those "in real trouble" can apply to suspend repayments altogether for six months - will need to apply to bank to get this - businesses will not see their credit rating fall as a result, the Chancellor said.

Tax - 5% VAT to remain longer, VAT deferred interest free payments, more time to pay HMRC

• The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March 2021
  
• Businesses who deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments - this will need to be requested to HMRC VAT dept
  
• Self-assessment income taxpayers who need help will be given more time to pay tax bills - again need to request from HMRC prior to deadline
  

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

Claiming a grant through the coronavirus (COVID-19) self-employment income support scheme (SEIS) worth 80% of trading profit

You can use this scheme if you're self-employed or a member of a partnership and have lost income due to coronavirus.

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months payable after HMRC checks your last 3 years tax returns filed. This may be extended by the government if needed.

Who can apply for this
You can apply if you’re self-employed (sole trader) or a member of a partnership and you:

• have submitted your Self Assessment income tax return for the tax year 2018-19
• have traded in the tax year 2019-20 - you have a limited time extension to back date and submit by 23/04/20 if this return was not done
• are trading when you apply, or would have been doing so except for COVID-19
• definitely intend to continue to trade in the tax year 2020-21
• and have lost trading/partnership trading profits due to COVID-19

Your self-employed profit before tax must also be less than £50,000 and more than half of your income must come from self-employment. This is determined by at least one of the following conditions:

• have trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
• have average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period

If you started trading between 2016-19, HMRC will only use those years you filed a Self-Assessment tax returns.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020. We can help you do this and you need to get in touch today.

HMRC said they will use data on 2018-19 tax returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way. If you have tax to pay for your 2018-19 tax return then this will need to be up to date.

How much will you get from hmrc
You can get a taxable grant which will be 80% of the average profits from the tax years (if all 3 available):

• 2016 to 2017 ie 6.4.16 to 5.4.17
• 2017 to 2018 ie 6.4.17 to 5.4.18
• 2018 to 2019 ie 6.4.18 to 5.4.19

To work out the average HMRC will be adding together the total trading profit for the 3 tax years (if all 3 available) then divide by 3 and then further divide by 12 to calculate a monthly amount.

They say it will be up to a maximum of £2,500 per month for 3 months. And they will pay the grant directly into your bank account, in one instalment. The bank details on your 18-19 tax return will most likely used as it is already in their records.

How to apply for it
You cannot apply for this scheme yet yourself. HMRC say they will contact you if you are eligible for the scheme and invite you to apply online. This may take some time as staffing levels are affected by COVID-19.

Individuals are advised they do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

You will access this scheme only through GOV.UK. website so be careful of fraud - And if someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.

After you’ve applied for it
Once HMRC has received your claim and you are deemed eligible for the grant, they will contact you to tell you how much you will get and the payment details. Previously this was by letter to the tax payers home for income tax refunds - it may be by text or emails also if HMRC has these records for you.

Note: If you claim tax credits you’ll need to include the grant in your claim as income. This income is taxable.

Other help you can get as well
The government stated it is also providing the following additional help for the self-employed:

• deferral of Self Assessment income tax payments due by 31 July 2020 (19/20 payment on account) and VAT payments (VAT regsitered business) due from 20 March 2020 until 30 June 2020
• grants for businesses that pay little or no business rates - apply to local council
• increased amounts of Universal Credit to £94.25 per week - apply direct to that dept
• Business Interruption Loan Scheme - apply direct to bank

If you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme (read her for more about this).

If you need help with your applications for government grants, loans and allowances as described above then as authorised HMRC agents and expert tax accountants Tax Affinity Accountants are available to support your business at this critical time. Urgently contact us by clicking here and we will use our expertise to support your business through this difficult time.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames and Epsom they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

The UK Government and the Chancellor have set out a package of temporary measures to support public services, people and businesses through this period of disruption caused by COVID-19.

This includes actions to support businesses including:

• a Coronavirus Job Retention Scheme
• deferring VAT and Income Tax payments
• a Statutory Sick Pay relief package for SMEs
• a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
• small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
• grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
• the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
• a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
• the HMRC Time To Pay Scheme

If you need help with your applications for government grants, loans and allowances as described above then as authorised HMRC agents and expert tax accountants Tax Affinity Accountants are available to support your business at this critical time. Urgently contact us by clicking here and we will use our expertise to support your business through this difficult time.

Support for businesses through the Coronavirus Job Retention Scheme
Under the Coronavirus Job Retention Scheme, all UK employers are able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.

Eligibility
All UK businesses are eligible.
How to access the scheme
You will need to:

• designate affected employees as ‘furloughed workers,’ and notify your employees of this change - changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
• submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required)

HMRC will reimburse 80% of furloughed (those on payroll but not working) workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan.

Support for businesses through deferring VAT and Income Tax payments
Government will support businesses by deferring Valued Added Tax (VAT) payments for 3 months. If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.
VATFor VAT, the deferral will apply from 20 March 2020 until 30 June 2020.
Eligibility
All UK businesses are eligible.
How to access the scheme
This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

Income Tax
For Income Tax Self-Assessment, payments due on the 31 July 2020 will be deferred until the 31 January 2021.
Eligibility
If you are self-employed you are eligible.
How to access the scheme
This is an automatic offer with no applications required.
No penalties or interest for late payment will be charged in the deferral period.
HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities.

Support for businesses who are paying sick pay to employees
Goverment will bring forward legislation to allow small-and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) paid for sickness absence due to COVID-19. The eligibility criteria for the scheme will be as follows:

• this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19
• employers with fewer than 250 employees will be eligible - the size of an employer will be determined by the number of people they employed as of 28 February 2020
• employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
• employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note. If evidence is required by an employer, those with symptoms of coronavirus can get an isolation note from NHS 111 online and those who live with someone that has symptoms can get a note from the NHS website
• eligible period for the scheme will commence the day after the regulations on the extension of SSP to those staying at home comes into force
• the government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible

Eligibility
You are eligible for the scheme if:

• your business is UK based
• your business is a small or medium-sized and employs fewer than 250 employees as of 28 February 2020

How to access the scheme
A rebate scheme is being developed. Further details will be provided in due course once the legalisation has passed. Government websites will contain more details.

Support for businesses that pay business ratesBusiness rates holiday for retail, hospitality and leisure businesses
Goverment will introduce a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year.

Businesses that received the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority as soon as possible.
Eligibility
You are eligible for the business rates holiday if:

• your business is based in England
• your business is in the retail, hospitality and/or leisure sector

Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:

• as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
• for assembly and leisure
• as hotels, guest & boarding premises and self-catering accommodation

How to access the scheme
There is no action for you. This will apply to your next council tax bill in April 2020. However, local authorities may have to reissue your bill automatically to exclude the business rate charge. They will do this as soon as possible.
You can estimate the business rate charge you will no longer have to pay this year using the business rates calculator.

Further guidance for local authorities is available in the expanded retail discount guidance.

Cash grants for retail, hospitality and leisure businessesThe Retail and Hospitality Grant Scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property.
For businesses in these sectors with a rateable value of under £15,000, they will receive a grant of £10,000.
For businesses in these sectors with a rateable value of between £15,001 and £51,000, they will receive a grant of £25,000.
Eligibility
You are eligible for the grant if:

• your business is based in England
• your business is in the retail, hospitality and/or leisure sector

Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:

• as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
• for assembly and leisure
• as hotels, guest and boarding premises and self-catering accommodation

How to access the scheme
You do not need to do anything. Your local authority will write to you if you are eligible for this grant.
Guidance for local authorities on the scheme will be provided shortly.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
Find your local authority on Google.

Support for businesses that pay little or no business ratesThe government will provide additional Small Business Grant Scheme funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR), rural rate relief (RRR) and tapered releif. This will provide a one-off grant of £10,000 to eligible businesses to help meet their ongoing business costs.
Eligibility
You are eligible if:

• your business is based in England
• you are a small business and already receive SBBR and/or RRR
• you are a business that occupies property

How to access the schemeYou do not need to do anything. Your local authority will write to you if you are eligible for this grant.
Guidance for local authorities on the scheme will be provided shortly.
Any enquiries on eligibility for, or provision of, the reliefs and grants should be directed to the relevant local authority.
Find your local authority on Google.

Support for businesses through the Coronavirus Business Interruption Loan SchemeA new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch early next week to support primarily small and medium-sized businesses to access bank lending and overdrafts.
The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value.
Businesses can access the first 12 months of that finance interest free, as government will cover the first 12 months of interest payments.
Eligibility
You are eligible for the scheme if:

• your business is UK based, with turnover of no more than £45 million per year
• your business meets the other British Business Bank eligibility criteria

How to access the schemeThe full rules of the Scheme and the list of accredited lenders is available on the British Business Bank website. All the major banks will offer the Scheme once it has launched. There are 40 accredited providers in all.

You should talk to your bank or finance provider (not the British Business Bank) as soon as possible and discuss your business plan with them. This will help your finance provider to act quickly once the Scheme has launched. If you have an existing loan with monthly repayments you may want to ask for a repayment holiday to help with cash flow.
The scheme will be available from early next week commencing 23 March.

Support for larger firms through the COVID-19 Corporate Financing Facility
Under the new Covid-19 Corporate Financing Facility, the Bank of England will buy short term debt from larger companies.
This will support your company if it has been affected by a short-term funding squeeze, and allow you to finance your short-term liabilities.
It will also support corporate finance markets overall and ease the supply of credit to all firms.
Eligibility
All UK businesses are eligible.
How to access the schemeThe scheme will be available early in week beginning 23 March 2020.
The Government will provide information on how to access the scheme soon - keep an eye on their website updates.

More information is available from the Bank of England website.

Support for businesses paying tax: Time to Pay serviceAll businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
Eligibility
You are eligible if your business:

• pays tax to the UK government
• has outstanding tax liabilities

How to access the schemeIf you have missed a tax payment or you might miss your next payment due to COVID-19, please call HMRC’s dedicated helpline: 0800 0159 559.
If you’re worried about a future payment, call HMRC nearer the time.

Insurance
Businesses that have cover for both pandemics and government-ordered closure should be covered, as the government and insurance industry confirmed on 17 March 2020 that advice to avoid pubs, theatres etc is sufficient to make a claim as long as all other terms and conditions are met.
Insurance policies differ significantly, so businesses are encouraged to check the terms and conditions of their specific policy and contact their providers. Most businesses are unlikely to be covered, as standard business interruption insurance policies are dependent on damage to property and will exclude pandemics.

If you need help with your applications for government grants, loans and allowances as described above then as authorised HMRC agents and expert tax accountants Tax Affinity Accountants are available to support your business at this critical time. Urgently contact us by clicking here and we will use our expertise to support your business through this difficult time.

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames and Epsom they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.

A large number of clients are asking us for help in understanding how the UK Government is going to support the employed, self employed & SME businesses during the coronavirus COVID-19 pandemic. The Prime Minister & Chancellor announced billions of pounds would be used to prevent businesses going under and support workers who have suddenly become unable to work.

Below is a helpful list of key points:

Salaried Employees - the Coronavirus Job Retention Scheme

• All registered employers in the UK are eligible via HMRC
• Government grants will cover 80 % of the salary of retained workers up to a total of £2,500 a month. Employer has to apply.
• This cover is for workers if employer is unable to pay, or are unable to work due to the coronavirus outbreak.
• Will become 'furloughed' and should not be working while under the scheme.
• Scheme will cover wages lost backdated to March 1, and applications will open before the end of April.
• Scheme will last until June 1, with potential to be extended & unlimited funds will be available.

For Self employed, contractors and freelancers

• Unfortunately  - No specific plan to compensate contractors, freelancers and self-employed.
• Chancellor advised those self employed affected by coronavirus to apply for the Universal Credit scheme, which has had its requirements and conditions changed for this crisis.
• Self-employed will not have to make the self assessment (tax return) payment on account that was due by 31 June 2020 now until 31.1.2021. This effectively means the 31 June 2020 payment of tax is suspended.
• The minimum income floor for Universal Credit is to be suspended, meaning all those who are self-employed can access Universal Credit at the rate equivalent to statutory sick pay for employees ie £94.25 a week.

Universal Credit and tax credit increase

• Standard Universal Credit allowance and Working Tax Credit basic allowance are both being increased by £1,000 a year to help families ie both will increase by £20 per week on top of planned annual uprating.
• New claimants will not need to prove 'gainful self-employment' if they are self employed and applying for Universal Credit.
• Claimants with Covid-19 or are self-isolating can receive advance payment upfront without having to go to a jobcentre.

SME Small & medium businesses - Coronavirus Business Interruption Loan Scheme

• Interest-free loan scheme announced last week has been extended from six months to 12 months. Scheme starts Monday March 23.
• The next quarter of VAT payments due from companies at the end of March has been deferred until the end of June. The VAT return still needs to be filed but it does not need to be paid if the business is struggling - allowing it to use the VAT 20% collected as cashflow for the short term.
• Additionally all businesses and self employed workers in financial distress and with outstanding tax liabilities, may be eligible for HMRC's Time To Pay service - ie HMRC allowing up to 12 months to pay off debts

For renters

• After announcing mortgage 'payment holidays' for up to three months for homeowners last week, a £1 billion package to support renters is announced by increasing the housing benefit under Universal Credit.
• Recipients would receive welfare to pay at least 30 percent of market rents for their local area.
• No rental pause from the government.

Other help

• Mortgage lenders have agreed that they will allow up to 3 months mortgage holiday for customers experiencing financila difficulty.
• Relaxation of planning permission to allow pubs and restaurants to start providing takeaway services without planning application
• Insurance claims for loss of earnings should be valid if your business is effected by a government requirement to close eg pubs, bars, cafe, nigh clubs, gyms, restaurants etc
• Business Rates discount up to 100% for 1 year for leisure and hospitality, contact your local council for more info
• Grants of up to £25,000 to retail, hospitality & leisure businesses operating from small premises with rateable value between £15k to £51k
• One off grant of £10,000 to around 700k businesses eligible for small business rate relief (SBBR) to help meet on going business costs
• Bank of England base rate dropped to 0.10% interest will help those with variable interest rate loans and mortgages by reducing their monthly payments - press your bank to adopt immediately and not delay by months as they normally do

By Anni Khan at Tax Affinity Accountants

Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames and Epsom they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success.

For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.