By Katie Business Advice • Business News • COVID-19 • Covid-19 Hub 0 Comments

Self-Employment Income Support Scheme: Claim by 19th October 2020

What is the Self-Employment Income Support Scheme?

The Self-Employment Income Support Scheme (SEISS) is designed to provide support for self-employed individuals whose businesses have been adversely affected as a result of the coronavirus pandemic. The government is providing up to four taxable grants to those who meet the eligibility conditions. Claims for the first grant are now closed. If you want to claim the second grant you must make your claim on or before 19 October 2020.You need to consider whether your business has been adversely (negatively) affected before you apply for the SEISS grants. You need to confirm that your business has been adversely affected as part of the claim process.

HMRC’s guidance contains examples of why your business could be adversely affected. These include if you have not been able to work for periods of time due to self-isolating, shielding or as a consequence of caring responsibilities caused by coronavirus, or if your business has had to temporarily close or scale down due to lockdown, making your workplace ‘COVID secure’, staff shortages, or a lack of customers. You will be expected to keep business records to show how your business has been affected and that you are eligible to claim the grant.

Who can claim?Please follow the link here to check if you can claim a grant through the Self-Employment Income Support Scheme.

What happens after you have claimed?HMRC will check your claim and pay your grant into your bank account in the next 6 working days. HMRC send an email when your payment is on its way. If your business recovers after you’ve claimed, your eligibility will not be affected. You must keep evidence to confirm your business was adversely affected at the time you made your claim.

Scheme extension
Please note, this scheme is now being extended from 1st November 2020 . Find out more here about the extension to the scheme. This guidance is yet to be published, but will be updated as soon as possible. When it does we will contact all clients.

Need more information?

Do you need more guidance on the Self-Employment Income Support Scheme? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience with those who are self-employed and have helped many of our self-employed clients through the coronavirus pandemic. Our team work hard to ensure they create smart and effective tax-efficient solutions for the self-employed to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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    By Katie Business News • Tax News 0 Comments

    Advisory fuel rates for company cars from 1 September 2020

    Advisory fuel rates

    These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 September 2020. Where there has been a change the previous rate is shown in brackets.

     

    Engine Size Petrol Diesel LPG
    1400cc or less 10p 7p (6p)
    1600cc or less 8p
    1401cc to 2000cc 12p 8p

    (9p)
    1601 to 2000cc 10p (9p)
    Over 2000cc 17p 12p 12p

    (11p)

     

    You can continue to use the previous rates for up to 1 month from the date the new rates apply.  For wholly electric cars there is a 4p advisory rate. However, for hybrid cars use the equivalent petrol or diesel rate.

    Thus, where an employee is considering reimbursing their employer for private use to avoid a taxable benefit, it may be beneficial to compute the actual cost of private fuel rather than use the scale rate.

    Need more information?

    Do you need help with advisory car rates? We offer a wide range of services which are unique to your business and our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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      By Katie Business Advice • Business News • Tax Advice • Tax News 0 Comments

      Get ready for leaving the European Union on 1st January 2021

      Leaving the European Union: The United Kingdom leaves the European Union at 11pm on 31 December 2020 when the transitional period ends. It is still unclear whether a trade deal will have been agreed with the EU by that date, and such an agreement is looking increasingly unlikely. HMRC have started writing to businesses alerting them to important changes from 1 January 2021 and suggesting that they have new procedures in place if they wish to trade with the EU from that date.

      In particular, businesses will need to submit declarations when importing and exporting goods that are categorised as ‘controlled’. Import processes for non-controlled goods will be phased in over a 6 month period. ‘Controlled’ goods include alcohol, explosives and certain drugs.

      OBTAIN AN EORI NUMBER

      If you have been trading internationally you should already have an Economic Operator Registration and Identification (EORI) number. You will need this to complete customs declarations. If you do not yet have one, you can register for free by going to www.gov.uk/eori

      Businesses need to decide how they are going to make customs declarations. Customs agents, freight forwarders and express operators can help with declarations and ensure the business is providing the necessary information.

      IMPORTS OF GOODS SUBJECT TO STAGED CONTROLS

      Most traders with a good compliance record will be able to defer import declarations on most goods for up to 6 months after 1 January 2021 depending on the nature of the goods.

      KEY VAT ISSUES AT THE BORDER

      Businesses will need to decide how they will account for import VAT when they make a customs declaration. From 1 January 2021, businesses will be able to use postponed VAT accounting to account for import VAT on their VAT Return for goods imported from anywhere in the world.

      They will also need to check if Import VAT is due at the border.  Import VAT will not be due at the border if goods in a consignment do not exceed £135 in value. The only exceptions will be excise goods and gifts.

      WHAT TARIFFS APPLY FROM 1 JANUARY?

      From 1 January 2021, there will be new rates of Customs Duty for imports – called the UK Global Tariff.

      The Tariff rates for transactions with the EU will depend upon whether or not a deal is reached. For example, if there is no deal with the EU the Tariff on motor cars will be 10% so many car dealers are suggesting that business should consider acquiring a new vehicle before 1 January. To check the tariffs that will apply to goods you import, go to www.gov.uk/guidance/uk-tariffs-from-1-january-2021

      Need more information?

      Do you need help with changes made by leaving the European Union? We offer a wide range of services for global businesses. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

      Our fantastic team at A&C Chartered Accountants are here to help.

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        By Katie Business News • Tax Advice • Tax News 0 Comments

        Chancellor outlines Winter Economy Plan

        The Chancellor, Rishi Sunak has outlined the Winter Economy Plan with additional government support to provide certainty to businesses and workers impacted by coronavirus across the UK. Central to the plan is a new Job Support Scheme and an extension of the Self Employment Income Support Scheme and help to pay back loans. Please find more information below.

        Support for workers
        From 1st November 2020, a 6 month scheme will be available to to protect viable jobs in businesses who are facing lower demand over the winter months due to coronavirus. The government will contribute towards the wages of employees who are working fewer than normal hours due to decreased demand. Employers will continue to pay the wages of staff for the hours they work – but for the hours not worked, the government and the employer will each pay one third of their equivalent salary. This means employees who can only go back to work on shorter time will still be paid two thirds of the hours for those hours they can’t work. In order to support only viable jobs, employees must be working at least 33% of their usual hours. The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.

        A Job Support Scheme Factsheet can be found here with more information.

        Tax cuts and deferrals
        Those who deferred their VAT bills will be given more breathing space through the New Payment Scheme, which gives them the option to pay back in smaller instalments. Rather than paying a lump sum in full at the end March next year, they will be able to make 11 smaller interest-free payments during the 2021-22 financial year. On top of this, self-assessment taxpayers will be able to benefit from a separate additional 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.

        Additionally, as part of the package, the government also announced it will extend the temporary 15% VAT cut for the tourism and hospitality sectors to the end of March next year. This will give businesses in the sector – which has been severely impacted by the pandemic – the confidence to maintain staff as they adapt to a new trading environment.

        Flexibility to pay back loans
        A new Pay as You Grow flexible repayment system will provide flexibility for firms repaying a Bounce Back Loan. This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses. These measures will further protect jobs by helping businesses recover from the pandemic. The government also intend to give Coronavirus Business Interruption Loan Scheme lenders the ability to extend the length of loans from a maximum of six years to ten years if it will help businesses to repay the loan.

        In addition, the Chancellor also announced he would be extending applications for the government’s coronavirus loan schemes that are helping over a million businesses until the end of November. As a result, more businesses will now be able to benefit from the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, the Bounce Back Loan Scheme and the Future Fund. This change aligns all the end dates of these schemes, ensuring that there is further support in place for those firms who need it.

        Need more information?

        If you need more guidance on the Winter Economy Plan, please do not hesitate to contact our team. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

        Our fantastic team at A&C Chartered Accountants are here to help.

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          By Katie Business Advice • Business News • COVID-19 • Covid-19 Hub 0 Comments

          Virtual meetings: running effective meetings

          We have adapted our accountancy practice to work with existing and new clients through virtual meetings. Over the course of the past few months, we have all had to adapt to working remotely.

          Despite lockdown restrictions, many businesses have found ways to move their operations online, with all staff working remotely. This has given rise to an increased volume of virtual meetings on services such as Skype, Zoom, Teams, WebEx or other popular online meeting services. This has resulted in a new challenge – how to have an effective virtual meeting.

          Agenda

          Just like any meeting, take the time to set an agenda and circulate it in advance of the call along with any supporting documents.

          Setting an agenda and sticking to it helps to keep the virtual meeting on track. If there are lots of documents, make sure that you circulate them in time to allow people to read them well in advance.

          Choose the right technology

          There is nothing more frustrating than dialling into a video or conference call and not being able to connect due to a technical glitch. Before you set up your virtual meeting, check with the attendees that they are comfortable (and able) to use your platform of choice. If possible, use a system that allows users to join via a web browser – most platforms such as Skype, Teams, Zoom, WebEx, etc. allow this.

          Etiquette

          A virtual meeting is still a meeting, so make sure you give it your full attention. Ask all attendees to use video – this makes it harder for them to do something else during the virtual meeting as they will be on everyone’s screen. In addition, seeing people on screen can help those who have been working from home during COVID-19 to feel more connected.

          Jump into the content

          Don’t waste time (yours or other people’s) during a virtual meeting. Keep it short and get straight into the agenda. Aim to follow up within 24 hours of the meeting with any relevant action points as it keeps people’s attention. By sending the notes around 2 weeks after a meeting, momentum on any actions may be lost.

          Need more information?

          We have adapted our business to provide clients with virtual meetings. We offer a wide range of services which are unique to your business and work with clients virtually all over the world. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

          Our fantastic team at A&C Chartered Accountants are here to help.

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            By Katie Business News • Tax Advice 0 Comments

            Diary of main tax events September/October 2020

            Diary of main tax events September/October 2020

            Date What’s Due
            1 September Corporation tax for year to 30/11/19 unless pay by quarterly instalments
            19 September PAYE & NIC deductions, and CIS return and tax, for month to 5/9/20 (due 22 September if you pay electronically)
            1 October Corporation tax for year to 31/12/19 unless pay by quarterly instalments
            5 October Deadline for notifying HMRC of chargeability for 2019/20 if not within Self-Assessment and  receive income or gains on which tax is due
            19 October PAYE & NIC deductions, and CIS return and tax, for month to 5/10/20 (due 22 October if you pay electronically)

            Need more information?

            Do youneed more guidance of the diary of main tax events September/October 2020. We are here to help and offer a wide range of services. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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              By Katie Business News • Tax Advice • Tax News 0 Comments

              Certain property business owners are liable to class 2 National Insurance Contributions

              Class 2 National Insurance Contributions (NICs) are currently paid at the rate of £3.05 per week by self-employed earners. A person who is liable to Income Tax on the profits arising from the receipt of property rental income will only be a self-employed earner for NICs purposes if the level of activities carried out amounts to running a business.

              HMRC have recently issued clarification which states that in order for a property owner to be a self-employed earner, their property management activities must extend beyond those generally associated with being a landlord which include, but are not limited to, the following:-

              • undertaking or arranging for external and internal repairs
              • preparing the property between lets
              • advertising for tenants and arranging tenancy agreements
              • generally maintaining common areas in multi-occupancy properties; or
              • collecting rents.

              The HMRC guidance suggests that the ownership of multiple properties, actively looking to acquire further properties to let, and the letting of property being the property owner’s main occupation could be pointers towards there being a business for NICs purposes.

              A landlord will also be a self-employed earner if any of their activities amount to a trade for Income Tax purposes. This could include, for example, receiving income from other services provided to tenants.

              Need more information?

              Do you need more guidance on National Insurance Contributions? We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

              Our fantastic team at A&C Chartered Accountants are here to help.

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                By Katie Business Advice • Business News 0 Comments

                Notify HMRC of overclaimed CJRS “furlough” grants within 90 days

                The calculation of the furlough Coronavirus Job Retention Scheme grants has proven to be complex, particularly as HMRC frequently changed the rules and the method of computation. Consequently, many errors have arisen and need to be corrected. The latest Finance Act requires employers to notify HMRC within 90 days where it turns out that they were not entitled to receive the furlough grants and there is a penalty for failure to notify them.

                HMRC has said that it will be lenient in relation to genuine mistakes, and that penalties will be charged only in cases of deliberate non-compliance.

                NUMEROUS FRAUDULENT CJRS CLAIMS IDENTIFIED

                HMRC’s CJRS fraud reporting portal had received over 2,000 reports of wrongful claims.

                Examples of such wrongful claims include;

                • Claiming furlough payments for staff who are continuing to work
                • Furloughing staff but asking them to work “voluntarily” on an unpaid basis.
                • Claiming furlough payments for “ghost” employees, and those who left employment before 19 March 2020.
                • Not passing on the full amount of furlough pay to staff.
                • Failing to account for PAYE tax and NIC in relation to furlough payments

                HMRC also have the power to transfer CJRS penalties to the directors of an insolvent company if their company does not pay them.  We therefore suggest that employers should check the accuracy and validity of their CRJS claims as a matter of priority, and ensure that any inaccuracies or errors are disclosed to HMRC as quickly as possible. We can of course assist you in checking claims.

                Need more information?

                We offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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                  By Katie Business Advice • Business News 0 Comments

                  Diary of main tax events August / September 2020

                  Diary of main tax events August / September 2020

                  Date What’s Due
                   

                  1/08

                  		  

                  Corporation tax for year to 31/10/19 (unless pay quarterly)
                   

                  19/08

                  		  

                  PAYE & NIC deductions, and CIS return and tax, for month to 5/8/20 (due 22/08 if you pay electronically)
                   

                  1/09

                  		  

                  Corporation tax for year to 30/11/19 (unless pay quarterly)
                   

                  19/09

                  		  

                  PAYE & NIC deductions, and CIS return and tax, for month to 5/9/20 (due 22/09 if you pay electronically)

                  Need more information?

                  Do you need help with the diary of August / September tax events? We offer a wide range of services which are unique to your business and are here for you. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

                  Our fantastic team at A&C Chartered Accountants are here to help.

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