By Katie Tax Advice • Tax News 0 Comments

P11d forms still due by 6 July 2020

Despite the coronavirus lockdown HMRC have announced that they will still expect P11d forms reporting expenses and benefits to be submitted by the normal 6 July deadline.

Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively and necessarily in the performance of the employee’s duties. Dispensations from reporting are no longer required.

Note also that trivial benefits of no more than £50 provided to employees need not be reported.

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.

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

Contact us below

Fields marked with an * are required





    By Katie Business News • Tax News 0 Comments

    Self-employed income support grants also extended

    Sole traders and members of partnerships started making claims under the Self-Employed Income Support Scheme on Wednesday 13 May and many have already received their grant.

    Unfortunately, unlike the CJRS furlough scheme, claims could not be made by agents on behalf of clients although we can of course check that you have received the correct amount and request a review if the amount is incorrect.

    In order to be eligible your self-employed profits in 2018/19 must not exceed £50,000 and must be more than 50% of your total income. If that test is not met, then the same £50,000 and 50% tests are applied to average profits and total income over the three years (or shorter period) to 5 April 2019.

    The amount of the grant that can be claimed is 80% of average profits for the three years to 5 April 2019. The grant is capped at £2,500 a month and the maximum amount is £7,500 for the initial 3 month period. The Chancellor has now announced that this scheme would be extended for 3 months from 1 June but reduced to 70% of average profits, limited to £6,570.

    There are a number of anomalies, for example if the trade commenced 6 October 2017 the profits for 2017/18 and 2018/19 are divided by 2 to establish an annual profit figure rather than divided by 18 months which we consider to be unfair.

    Like the CJRS furlough payments the amounts received are included in your trading profits and thus subject to income tax and national insurance.

    Need more information?

    Our team offer a wealth of self-employed support. We offer a wide range of services for self-employed businesses and our team of chartered accountants have 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.

    Contact us below

    Fields marked with an * are required





      construction builder on site
      By Katie Business News • Tax Advice • Tax News 0 Comments

      Job retention furlough scheme extended to October

      Chancellor Rishi Sunak announced on 12 May that the CJRS furlough scheme will be extended until the end of October. The scheme will continue in its current form until the end of July with the Government paying 80% of employees wages up to £2,500 a month. For accounts purposes the amounts received should be credited to a “grants received” account, and this will therefore increase taxable profits of the business.

      From 1‌‌ August to the end of October, HMRC will introduce more flexibility so employers will be able to bring their furloughed employees back to work part-time and contribute to paying employees’ wages while still receiving support from the scheme.

      On Friday 29 May the Chancellor announced that the Government will stop reimbursing NICs and pension contributions from 1 August 2020. From 1 September 2020 the amount reimbursed by the Government will be reduced to 70%, limited to £2,190. There will be a further reduction to 60% from 1 October 2020, limited to £1,875.

      We will of course continue to assist you in making furlough claims.

      Need more information?

      We have a dedicated team looking after the furlough scheme for our clients. We offer a wide range of services 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.

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

      Contact us below

      Fields marked with an * are required





        By Katie Tax News 0 Comments

        Diary of main tax events May/June 2020

        If you need anymore guidance on the main tax events for this month please get in touch.

        Date What’s Due
         

        01/05

        		 Corporation tax payment for year to 31/07/19 (unless quarterly instalments apply)
         

        19/05

        		 PAYE & NIC deductions, and CIS return and tax, for month to 5/05/20 (due 22/05 if you pay electronically)
        01/06 Corporation tax payment for year to 31/08/19 (unless quarterly instalments apply)
         

        19/06

        		 PAYE & NIC deductions, and CIS return and tax, for month to 5/06/20 (due 22/06 if you pay electronically)

        Need more information?

        We work hard with you to ensure you do not miss the main tax events every month. 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.

        Contact us below

        Fields marked with an * are required





          By Katie Tax Advice • Tax News 0 Comments

          New system for reporting CGT on property disposal

          A new CGT reporting and payment on account system was introduced for a residential property disposal by UK resident taxpayers from 6 April 2020. The new system as originally announced required the disposal to be reported and any CGT due to be paid on account within 30 days of completion. HMRC have now announced that for disposals between 6 April and 30 June there will be no penalty provided that the return is made by 31 July 2020 although HMRC will still charge interest!

          We can of course assist you with this new reporting obligation, but you will need to be registered with the Government Gateway and authorize us to act on your behalf.

          Need more information?

          We offer a wide range of services for companies with a residential property disposal. We are here to help you through the Coronavirus and will do everything we can to get you through. 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.

          Contact us below

          Fields marked with an * are required





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

            CGT private residence relief changes go ahead

            The latest Finance Bill includes important changes to private residence relief that took effect from 6 April 2020.

            The first change is to limit to just 9 months the period prior to disposal that counts as a period of deemed occupation and thus exempt from CGT even though the owners are not living in the property during that period

            The second is to limit “letting relief” to periods where the taxpayer is in shared occupation with the tenant.

            Final period exemption now reduced to 9 months

            The final period exemption was for many years the last 36 months which was felt to be too generous. The period was then reduced to the last 18 months and has now been further reduced to the last 9 months.

            The final period exemption will remain at 36 months for those with a disability, and those in or moving into care.

            CGT Lettings Relief Changes

            Lettings relief provided a further exemption for capital gains of up to £40,000 per property owner.

            The additional relief was introduced in 1980 to encourage people to let out spare rooms within their property on a casual basis without losing the benefit of PRR, for example where there are a number of lodgers sharing the property with the owner. It no longer applies where property owners rent out their former main residence.

            Those who are renting their property temporarily whilst working elsewhere are unlikely to be affected by this change as there are alternative reliefs available under those circumstances.

             

            Need more information?

            We offer a wide range of services for private residence 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. We are here to help and understand this difficult time with Coronavirus. 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.

            Contact us below

            Fields marked with an * are required





              By Katie Tax Advice • Tax News 0 Comments

              Impact on the high-income child benefit charge

              Child benefit charge: With many employees and the self-employed being furloughed, being made redundant, or making lower profits, their income for 2020/21 may well fall below the £50,000 limit at which child benefit starts being taxed.

              The charge is 1% for every £100 that adjusted net income exceeds £50,000 multiplied by the child benefit claimed in respect of the children. Note that the rate of Child benefit increased from 6 April to £21.05 a week for the eldest child and £13.95 for each additional child.

              Many couples with income over £60,000, when the benefit is fully taxed stopped, claiming Child Benefit rather than have to repay it back in tax. They should therefore reinstate their claims if the income of the higher paid taxpayer could drop back below £60,000.

              Need more information?

              We understand the impact Coronavirus is having on your business and we want to help ensure your business comes out on the other side. If you need help with the child benefit charge please get in touch. We 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.

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

              Contact us below

              Fields marked with an * are required





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

                Increase in Working Tax Credits

                The government has announced that Working Tax Credits payments will be increased from 6 April 2020. As part of a number of measures to support the country during the COVID-19 pandemic, the basic element of Working Tax Credit has been increased by £1,045 to £3,040 from 6 April 2020 until 5 April 2021.

                The amount a claimant or household will benefit from will depend on their circumstances, including their level of household income. But the increase could mean up to an extra £20 each week. The government is also updating Child Benefit, other tax credits rates and thresholds, and Guardian’s Allowance by 1.7% with effect from 6 April 2020. These increases came into effect on the 6 April, but individual payment dates will vary depending on circumstances. You don’t have to take any action and you will receive any increased payments automatically. A full list of tax credits, child benefit and Guardian’s allowance can be found:

                You can use the tax credits calculator to work out how much you could get.

                Please do get in touch with us if you need any guidance on this or any other matter.

                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.

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

                Contact us below

                Fields marked with an * are required





                  By Katie Tax Advice • Tax News 0 Comments

                  Diary of main tax events March / April 2020

                  Please find the Diary of main tax events March / April 2020.

                  Date What’s Due
                  1/03 Corporation tax payment for year to 31/5/19 (unless quarterly instalments apply)
                  19/03 PAYE & NIC deductions, and CIS return and tax, for month to 5/03/20 (due 22/03 if you pay electronically)
                  1/04 Corporation tax payment for year to 30/6/20 (unless quarterly instalments apply)
                  5/04 End of 2019/20 tax year, Many tax actions need to be taken by this date (see above).
                  19/04 PAYE & NIC deductions, and CIS return and tax, for month to 5/04/20 (due 22/04 if you pay electronically)

                  Need more information?

                  We hope you have found the diary of main tax events March / April 2020 useful. If you need any guidance and support on meeting these deadlines, please do not hesitate to get in touch with our team. 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.

                  Contact us below

                  Fields marked with an * are required