HMRC have announced that all 2020 personal tax owed, less than £30,000, may be paid over a year by monthly installments, penalty free if you contact them and agree the plan before 31st March 2021. The same plan is on offer for all companies that cannot pay the deferred VAT quarter due to Coronavirus last year. Contact HMRC using your online account to agree the plan or telephone them.
Budget 2021 Main points – Furlough scheme extended to 30/09/21 at 80% of pay until 30/06/21 and then 70% until 31/07/21 and then 60% for the remaining 2 months SEISS grant announced for Feb-April again at 80% of profits and then from May the grant will lower if your profits are not reduced by more than 30% of usual. This is available to all the self employed who have submitted a 2020 tax return Business rates holiday for retail and hospitality is [...]
From 1st March all vat registered CIS registered companies will be paid net of VAT by their contractors. The vat will be shown as withheld on the invoice. This will have an immediate impact on cashflow but with a VAT rebate likely due, the cashflow should be the same over a quarter. Some larger companies may consider monthly VAT returns if this is a concern.
If you withdraw more money from your Limited company than there are profits, this is known as a Directors loan. If this loan is not repaid within 9 months of your year end your company is charged Corporation tax on this amount at 32.5% rather than the usual 19% and also the amount gets added to your personal tax return and you are personally taxed at your prevailing tax rate
Local lockdown furlough payments. From 1st November 2020 for 6 months, if your business has been forced to close in a local lockdown area due to coronavirus, you can claim 2/3rds of your staff members salary as a furlough payment up to £2,100 per month per staff member. The business must be closed due to government guidelines to claim not just affected by coronavirus. There will also be up to £3,000 per month in grants for a business to apply [...]
Yesterday the Chancellor announced the Jobs support scheme to replace the furlough scheme from 1st November. This scheme is to support Employers that are having to reduce staff hours due to the Corona Virus. From 1st November any small company can access this scheme for 6 months. The Employer will pay the Employee as usual for any worked hours. For any remaining unworked hours the Employer will pay 1/3, the Government 1/3 and the Employee will suffer the remaining [...]
Employees may be able to claim tax relief if they are working from home for their Employer. From April 2020 you may claim £6 per week (£312 per year) without having to keep any records. Please check if you can claim at www.hmrc.gov.uk and search “claim tax relief for your job expenses” – Remember you cannot claim if you are self employed or a company director and we are already claiming “Use of Home” expenditure in your accounts