Remember to pay your second payment on account for personal 2020 tax by 31st July. Personal tax payments are made up of three different payments. One half in January and one half in July of that year and then if there is a balance due following submission of your tax return, this is payable in January of the following year.
Furlough scheme – from 1st July staff can be furloughed part time on a daily basis instead of the current 3 week minimum furlough period. Also from 1st August you will not be able to claim for furloughed staff employers NI and pension contributions. From 1st September in addition to this, the furlough wage reclaim lowers to 70% and then from 1st October 60%, until totally ceasing 31st October.
Keep checking your emails for all updates regarding the corona virus and business and tax advice. Including the PAYE and self employed job retention schemes, government grants, government backed bank loans and the fact that VAT and personal tax is deferred.
The biggest points to affect a small business in yesterdays budget were : A Tax cut for 31 million people by increasing the National Insurance threshold from £8,632 to £9,500 Emergency base rate interest rates cut from 0.75% to 0.25% Business rates for small firms in leisure and retail with a rateable value of less than £51,000 will be scrapped Statutory Sick Pay (SSP) will be available to all employees advised to self isolate due to the Corona virus. Employers with less than [...]
From 6th April 2020 the way you declare your Capital Gain Tax (CGT) to HMRC when selling a second property changes. Instead of just including the sale in your end of year personal tax return you must also now personally declare the gain online at www.hmrc.gov.uk and pay the tax due within 30 days of the sale. There is an online calculator to help you pay the correct tax. The sale must also still be included on your end of [...]
If you are an employer and employee staff over 22 years old or earning over £10,000 you must offer them a company pension scheme, even if they wish to opt out. If you do not set up a pension scheme the regulator may fine you up to £5,000 per company. Please note that this is the responsibility to set up, enrol and reenrol, of the director not the accountant.
If your husband or wife does not use their £12,500 tax allowance then they may transfer £1250 of their allowance to their basic rate paying partner, reducing their tax bill by up to £250. If you wish to apply then the person with the lower income should go to www.hmrc.gov.uk/marriage-allowance/how-to-apply. This may also be backdated to 2015.
Many clients are set up to pay the minimum tax and National Insurance, by paying a low wage and a monthly dividend. Whilst this is the most tax efficient way to pay yourself, if this is continued for many years there is a possibility you will under pay National Insurance and possibly not receive a full pension. If this is the case you can voluntarily top up your National Insurance contributions. Please check your NI contributions are ok by [...]
From April 2020 HMRC are changing the way rule IR35 is viewed, which determines if you are an employee or sub contractor. The responsibility is going to now be down to the contractor or employer to decide the correct decision. Obviously, tax wise, it is better for someone to be a sub contractor, but the rules are tightening. After discussions with HMRC and governing accounting bodies, it seems that the all important criteria is if an individual has the [...]
Normally if you sell your business the proceeds are split between Sale of Assets and Goodwill. The Profit or Loss on the sale of the assets will depend upon the sale and the value in your accounts, but the remaining money received will be for Goodwill and you will have to personally declare this for Capital Gains Tax (CGT). CGT is at 10% for basic rate tax payers and 20% for upper rate tax payers, although you may qualify [...]