Taxation

Self assessment penalties

Remember there is a 5% unpaid tax surcharge if your personal tax remains unpaid at the end of February, July and the following January. There is also a £10 daily penalty if your personal tax return is not filed by 30th April of the following year up to a maximum £900. There is then an additional 5% or £300 (whichever the greater) charged if your tax return is still not filed by the end of July and again by [...]

HMRC installment plan

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

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 [...]

Directors loans and Taxation

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

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 [...]

Winter Economic Plan

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 [...]