Extension to coronavirus Self-Employment Support Scheme from government - SEISS 2nd payment6/21/2020 The Government and the Chancellor have confirmed that self-employed workers whose businesses have been negatively hit by coronavirus (Covid-19) would be able to claim “a second and final grant” in August 2020.
Those eligible can apply for the first grant (which was 80% of average monthly profits up to maximum of £2,500 per month for three months ie £7,500) until 13 July 2020. In the extension, those eligible for the second and final grant (businesses adversely affected on or after 14 July 2020) can make a claim in August 2020 (to be confirmed when it will open). You can make a claim for the second grant even if you didn’t make a claim for the first grant. The second grant will be a taxable grant worth up to 70% of your average monthly trading profits (ie £2250 per month), paid out in a single payment covering a further three months’ worth of net profits, to a maximum of £6,570 in total. Clients are advised if they have not claimed for the first grant to do so by the 13 July 2020. And if they are adversely effected in (June, July and August 2020) then to claim for the second grant also as soon as the scheme is opened by the Chancellor and the Government. 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.
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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. CORONAVIRUS COVID-19 KEY POINTS FOR Self-Employment (SOLE TRADER) Income Support Scheme (seis)3/27/2020 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:
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):
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:
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:
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:
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:
You are eligible for the scheme if:
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:
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:
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:
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:
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:
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
For Self employed, contractors and freelancers
Universal Credit and tax credit increase
SME Small & medium businesses - Coronavirus Business Interruption Loan Scheme
For renters
Other help
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. Changes to UK Income tax rates changes for 19/20 from 5th April 2019:
Personal allowance: Up to £12,500, Tax 0% Basic rate £12,501 to £50,000, Tax 20% Higher rate £50,001 to £150,000, Tax 40% Additional rate Over £150,000, Tax 45% Allowances: There are many other changes with tax allowances such as Annual Investment Allowance claimable rising to £200,000 per annum. Dividend tax rates: The tax-free dividend allowance is £2,000 Basic-rate taxpayers pay 7.5% on dividends Higher-rate taxpayers pay 32.5% on dividends Additional-rate taxpayers pay 38.1% on dividends. Corporation Tax: Rate remains at 19% Directors Loans: If loaned amount exceeds £10,000 at any point during the year then 2.5% nominal interest on the whole amount plus Class 1A National Insurance contributions (13.8%), and may need to be reported on your P11D As market leaders and experts in Tax and accounting for business, there are of course many other changes as well and these we regularly advise and update our clients as and when the tax rules change. If you would like to become a client and receive this support and updates - contact us today. 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 Espom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting contractors and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice. 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. As of today there are only 16 working days till the 31st January 2018, which is HMRC's online self assessment deadline. Our team of experienced tax accountants, some who have worked in the top 5 accounting firms in the UK, advise everyone to make haste and ensure their tax return is done early to both minimise tax and the chance of late filing penalty.
The submission of the personal income tax return and the payment of any tax and NI due for the period 6/4/16 to 5/4/17 is midnight 31/1/18. And anyone who has not yet had their tax return done should start to worry about the 'up to £1300 fine plus interest on late paid tax' imposed by HMRC for missing the deadline. To put it further in to perspective there is an immediate penalty of £100 if the return even one day late. The self assessment / personal tax return is required from the following types of people: 1. Self Employed (even partially) during the tax year 16/17 ie 6/4/16 to 5/4/17 2. Employed and earning over 100k for the year ended 5/4/17 3. Director or shareholder of a Company and taking dividends in the period as above 4. If you have received rental income in the period 6/4/16 to 5/4/17 5. You received savings and investments income in the period 6/4/16 to 5/4/17 6. You sold something and made a profit on the item, so are required to pay the Capital Gains Tax (CGT) eg selling shares, a property, an antique, Plant and Machinery etc 7. You have received income over £50,000 and you claimed Child Benefit 8. If you have not notified HMRC that you have left self employment and they have not confirmed that you do not need to do a 16/17 return 9. A letter / email / text from HMRC has been received by the tax payer advising them that they need to submit a tax return for the 16/17 year (note: only new registrants may get a reminder as HMRC expects old registrants to already know the deadlines and protocols required). 10. You received income from overseas including off shore companies (the law has changed) 11. You lived abroad and had income from the UK 12. You are retired and receive more than one type of pension and annual income payment pushing you over the personal income allowance 13. You have had a P800 from HMRC saying you have not paid enough tax in the year 14. You are minister of religion or and Underwriter 15 Even if a person has died they may still need to submit a tax return to make sure they have paid the correct tax and those that receive an inheritance may need to pay for Inheritance Tax (HMRC will advise further). 16. If you have received a P11d and not paid the correct tax for the benefit in kind eg company car, private medical, gym, travel etc So if you haven't already had your tax return done and still need to send / drop in your income and expenses information, please take heed of this reminder. For those that have handed in their information, we will make sure it is done before the deadline and if there is any tax due we will advise you of this well before the deadline. We can even have your deadline extended in some cases as we are a registered authorised agent for HMRC. And if your thinking of using an accountant - then make sure to note, not all accountants are the same. We recommend you use an expert in tax so he/she saves you far more in tax than you ever have to pay them for their service. A lot of accountants are using out of date knowledge they learned along time ago and never bother to keep up to date with the ever changing landscape of HMRC tax rules and regulations. With fines up to £1300 plus interest on the amount of tax due. This means for some, the penalties can be much greater than the actual tax that would have been due. So don't delay, as you have little time left. And in the unfortunate even that you do miss the deadline - most excuses and appeals are rejected by HMRC. If you would like to contact us about having your tax return done by an experienced tax accountant then go to our contact us page and tell us your requirements today. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Surbiton , Worcester Park , Kingston upon Thames , Cheam and Epsom they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice and support. 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. Tax Affinity Accountants is pleased to announce that we have been awarded the Best Business of 2017, and have been recognised as one of the Top Service providers in our field of expertise by an Independent reviewing panel. A proud member of the Federation of Business this award was external to the FSB and a surprise award.
Independently recognised Our Worcester Park branch was commended for providing a consistently high quality service in our area of business (Tax and Accounting). The independent review team reviewed Tax Affinity Accountants using a 50-Point Inspection which included everything from checking reputation, history, complaints, ratings, satisfaction, trust and the cost to the general public. In short overall excellence. Unexpected review As you can image this has been a very pleasant surprise as we did not even know we were being independently reviewed and did nothing different from what we normally do. We were simply providing the best service we can as normal for every member of the public who approaches us for advice and support. Appreciation We would like to thank all of our customers for allowing us to be part of their lives and letting us help and support them and their businesses. We enjoy helping every self employed person and feel immense sense of pride and happiness when we see our clients businesses expand and grow. In some cases we have seen you guys start from absolutely nothing to a multi million pound turnover within a couple of years. Understanding all the hard work, and long hours it takes for each self employed owner to make their business a success. We have always been there to help and support you and congratulate you on your hard fought success. This award is also recognition for all the staff at Tax Affinity Accountants for going the extra mile and ensuring clients are 110% satisfied. Their long hours worked and late finishes to ensure each clients work is done on time and as tax efficiently as possible means this a reward for their hard work. And finally, we would like to thank the reviewers for their glowing recommendation and wish them the very best for the future as well. By Andrew Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park, Kingston upon Thames, Cheam, and Surbiton they are considered in the Industry to be expert accountants and tax advisors for small businesses. Helping and supporting companies, contractors and self employed people throughout the UK, they regularly help clients with their payroll and pension. And help grow their business by providing tailored advice. 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. IR35 is the name of piece of 'intermediaries legislation' by HMRC which is designed to establish whether a contractor is considered self employed or employed for tax purposes.
An investigation can be triggered by HMRC either as a random check or when they find a contractor that they suspect of being declared as self employed but actually working in a manner like an employee and therefore paying less tax than normal. They call such a person a 'disguised employee'. There are certain key signals to HMRC if someone is a 'disguised employee'. And a few of these are listed below:
Contractors therefore need to be aware and compliant to the rules and regulations of working and make sure certain things are in place to ensure safety for both the company they are working for and for themselves. An experienced quality accountant like Tax Affinity Accountants can help you to be safe and ensure procedures and practices are in place to ensure you are compliant. If you are worried you should contact us as soon as possible. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Kingston upon Thames they are considered in the Industry to be expert accountants and advisors for small businesses. Helping and supporting business throughout the UK, they regularly help clients grow their business providing tailored advice. 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 importance of budgeting for income or corporation tax for self-employed people
A lot of of us dream of running our own business, and with hard work and careful planning, self-employment can be hugely rewarding and fun. But due to the fluctuating incomes many self-employed people face, running your own business requires careful money management. Whilst you may have a strong overall income, the flow of money may not always be regular and it can take weeks and even months between pay cheques. It is therefore very important to manage your money carefully. Running out of cash before you get paid again could mean living on credit and interest payments may prove to be very costly. Income tax is paid by sole traders and partnerships and corporation tax is paid by limited companies. Regardless of whether you are a sole trader, partnership or work via a limited company it is particularly important to budget for the tax due on 31 January each year. Unlike employment income, your tax is not deducted at source and as you receive your income untaxed it is easy to assume that all of this is yours. However, some of this income will be paid in tax and should be budgeted for in order to avoid the shock of a high tax bill. It is worth noting at this point that if income or corporation tax has not been budgeted for and you delay payment, you may have to pay fines for late payment (as highlighted in more detail in the previous blog post). A good accountant can help you with budgeting by calculating how much of your income will be paid to the taxman and can also advise on how to minimise this. You can also use the 'Self-employed ready reckoner' tool on the HMRC website for an estimate of how much money to set aside. And this is usually around a 80:20 split between you and HMRC. Furthermore, you can also set up a 'budget payment plan' which lets you make regular weekly or monthly payments in advance. These methods will save you a lot of stress and will help you better manage your money, especially during the Christmas period. If you need any further help please do not hesitate to contact us and we'll be sure to offer you bespoke advice depending on what best suits you. By Hamza Habib at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. Based in Worcester Park and Surbiton in Kingston upon Thames they are considered in the industry to be experts accountants for small businesses. Helping and supporting business throughout the UK, they regularly help new and established businesses to succeed. 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. |
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