If anyone has had to work from home during the 20/21 tax year for even one day, HMRC are allowing you to claim £6 per week for every week as an allowable expense, saving the basic rate tax payer £62 in tax. This should be claimed via your personal 2021 tax return.
Directors Loans – If a director takes non PAYE wages from a Limited company either as a loan or if the profits are not there to pay a Dividend, then the Director has received a loan. If the loan was greater than £10,000 and the loan is not repaid within 9 months of your year end, then the company is taxed at 32.5% on the outstanding loan and the Director is taxed as having taken a Dividend. A Directors loan [...]
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 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.