Wednesday, 8 April 2020

Claiming 80% of Furloughed Pay

We want to make everyone aware of this in case you need to take action.

If you are a Hillmans client and we prepare your payroll for you, you can rest assured we will take care of this for you. You also do not need to read the rest of this post if you have not furloughed any employees.

Coronavirus Job Retention Scheme - Claiming 80% of Furloughed Pay

You will be able to claim funding from the government using a new portal if you have furloughed any of your employees.  Although we have not yet been given full guidance from HMRC, it appears that the funding will need to be claimed through the government gateway service for employers. You will, therefore, need to make sure you have access to your PAYE online account.

In order to make sure that you can claim as soon as possible (it has been suggested that the launch will be on 20 April) please take the following action now.

If you already have a government gateway account, please log in to make sure it works, and your password is correct or is renewed.  Then ensure that PAYE Online for Employers is listed as a service that you can use.  If it is not, please follow the instructions to add it.  You will need your PAYE reference number and accounts office reference number to hand when you do.

If you do not have a government gateway account already, please visit https://www.gov.uk/log-in-register-hmrc-online-services to do so.  

An activation code will need to be posted to you which is why we suggest you action this now.

Please do not hesitate to contact us if you require any assistance with PAYE online services – we would be delighted to help. 

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
https://www.hillmans.co.uk/covid-19-updates 

Claim working from home allowance during the coronavirus

HMRC have announced that it will increase the maximum flat rate tax deduction available where employees incur additional household costs where they work at home under homeworking arrangements, from £4 per week to £6 per week. This will take effect from April 2020.

If your employer requires you to work at home, you can make a claim, this is particularly relevant in the current environment due to the coronavirus. 

Broadly, no tax liability arises where employers make payments to employees for reasonable additional household expenses, which the employee incurs in carrying out duties of the employment at home under 'homeworking arrangements'.

'Homeworking arrangements' are arrangements between the employee and the employer under which the employee regularly performs some or all of the duties of the employment at home. There is no requirement for any part of the employee's home to be used exclusively for the purposes of the employment - in fact, if any part of the home is used exclusively for work, problems could arise on the future sale of the house as part of the capital gains tax exemption on private residences may be lost.

HMRC have stated that they will accept that homeworking arrangements exist where:

- there are arrangements between the employer and the employee; and
- the employee works at home regularly under those arrangements.

Monday, 6 April 2020

Coronavirus and High Income Child Benefit Charge

The coronavirus (COVID-19) pandemic is causing many people to see a reduction in their income. This can mean there are knock-on effects to your tax position.

If your income falls below £60,000, your liability to the High Income Child Benefit Charge (HICBC) may change or be eliminated completely. Where this is the case, if you do not currently claim child benefit, you may wish to consider claiming it. If you have opted out of receiving payment, you may wish to restart payments.

To restart your Child Benefit, either:

1. Fill in an online form. You need a Government Gateway user ID and password to fill in the online form. If you do not have a user ID, you can create one when you fill in the form.

2. Contact the Child Benefit Office on 0300 200 3100. Have your National Insurance number or Child Benefit number with you when you call.

Please drop us a line if you need any support with this.

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
https://www.hillmans.co.uk/covid-19-updates

Important Changes to Capital Gains Tax

Changes to Capital Gains Tax, Private Residence and Letting Reliefs  

From today, 6th April 2020, the government is making a number of changes to Capital Gains Tax, Private Residence and Letting Reliefs on properties.

The changes can be summarised as follows:
  1. 30 days to tell HMRC and pay any CGT Tax owed on property sales 
  2. Transfers between married couples equalised 
  3. Final period of ownership reduced from 18 months to nine months 
  4. Lettings relief unavailable for periods where owner is not occupying
Broadly, all of the above changes apply to transactions undertaken from 6th April 2020.

Friday, 3 April 2020

Weekly Update – 3rd April 2020

Weekly Update - 3rd April 2020

In this constantly changing and challenging environment, I thought it might be useful to drop you a quick update with all the main HMRC and tax updates we’ve seen over the past week. 

Please don’t hesitate to drop me a line if you have any queries or require support. 


COVID-19 Small Business Grant applications now live for all local councils

Over the past few days we have seen all the local Councils launch their online grant application forms. For more information visit our website here: https://www.hillmans.co.uk/covid-19-business-grants

Below are the links to the online grant forms for all the local Councils:

North Somerset Council:
https://forms.liberata.com/business-rates/covid19-grant-request/north-somerset

Sedgemoor District Council:
https://www.sedgemoor.gov.uk/COVID19grants

Somerset West and Taunton Council:
https://www.somersetwestandtaunton.gov.uk/business-rates/business-grants-covid-19-response/ 

Bristol City Council:
https://www.bristol.gov.uk/business-rates/grant-funds-application-form


Thursday, 2 April 2020

Business Rates COVID-19 Grant Request Form

Business Rates COVID-19 Grant Request Form

If you’ve recently applied for the Business Rates Grant via email to North Somerset Council, we’ve noted that an online grant request form is now live on the Council website.

The website link is here:
https://forms.liberata.com/business-rates/covid19-grant-request/north-somerset

To complete the grant process, it appears you need to complete this form using the same details you previously emailed to the Council. You’ll need to upload a copy of a bank statement, paying in slip or cheque to confirm the account details for the grant to be paid into.

Please drop me a line if you need any help or advice.

Stay safe.

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
www.hillmans.co.uk/covid-19-updates 



Monday, 30 March 2020

Directors and Furlough

There is one question we have been asked more than any other by directors since the furloughing guidelines were issued…

Can I furlough myself? 

We would like to share our updated thoughts on this subject and why you don’t have to (completely) make your mind up just yet. 

Basically, you are asking two questions…

1. Can I Furlough myself? 
2. Can I claim back 80% of my salary from the government?


Saturday, 28 March 2020

Coronavirus Job Retention Scheme

We thought it would be useful to share our understanding of the recently announced Coronavirus Job Retention Scheme. Please feel free to share this information with anyone who might need it.
  
Coronavirus Job Retention Scheme

Firstly, it is important to remember we are not employment lawyers and you should always seek formal legal advice before taking any action. 

Under the new Coronavirus Job Retention scheme, government grants will cover 80% of the salary of PAYE employees who would otherwise have been laid off during this crisis. The scheme, open to any employer in the country, will cover the cost of wages backdated to 01 March 2020 and will be open before the end of April. It will continue for at least three months and can include workers who were in employment on 28 February 2020.


Friday, 27 March 2020

Government Help for the Self-Employed

Government Help for the Self-Employed:

Last night the Chancellor announced financial support for the self-employed – i.e. sole traders and partners. 

Unfortunately the support excludes company directors who earn dividends from their own limited company.

An online petition has been started to encourage the Government to give the same support to company directors, you can view the petition here: https://www.change.org/p/uk-parliament-small-ltd-company-directors-to-get-government-support-like-the-employed-and-self-employed

Support for sole traders and partners

Here are the details we know so far for sole trader and partners:-

-It’s based on your taxable profits in the three years to 05 April 2019. 
-You will receive 80% of your average monthly earnings over that period, up to £2,500.  Initially for the three months i.e. 3/12ths of your average annual earnings. 
-It will be paid in June.  It comes in the form of a grant, meaning it is not repayable.

The full government rules on the self-employed are set out here:-

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme


Thursday, 26 March 2020

New Self-Employment Income Support Scheme

The Chancellor has just announced a new Self-Employment Income Support Scheme to help the self-employed through the coronavirus pandemic.

Whilst we don’t have the full details of the scheme yet, the key points to note are….

• A grant will be payable to the self-employed to cover 80% of monthly profits
• This will be calculated using the average profits for the past 3 years
• Capped at £2,500 per month
• The system is expected to be live in June – please be aware of this for your cashflow
• Self-employed with trading profits above £50,000 appear to be excluded
• Newly self-employed persons since April 2019 appear to be excluded
• Self-employed can continue to work whilst in receipt of the grant
• HMRC will contact the self-employed directly in order to make a claim
• It appears that this still ignores Directors of limited companies who are paid a basic salary with the balance as dividends – but we will await the guidance for confirmation

I will be reading the full details when published and be updating our clients with a full overview ASAP.

In the interim if you have any queries or concerns please don't hesitate to drop me a line.

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant
https://www.hillmans.co.uk/covid-19-updates

North Somerset Council Business Grant Schemes Open

Just a quick update to advise North Somerset Council has opened the application process for the COVID-19 Business Grant Schemes.
To apply to receive the grant you must email: n-somersetnndr@liberata.com and provide the following information:
• business name (i.e. sole trader or limited company name),
• property address,
• company registration number (as registered with companies house),
• VAT registration number (if applicable),
• account details (bank account number, sort code, business account name),
• your business rates account reference (the number on the business rates bill beginning with 7000, or 06) and;
• a full contact name, number and email address.

You can read full details here at the North Somerset Council website:
https://innorthsomerset.co.uk/support-for-those-affected-by-covid-19

If you need any support please don't hesitate to drop me a line.

Best wishes,

Steve

Steven Hillman ACA
Chartered Accountant

Tuesday, 24 March 2020

Coronavirus (COVID-19) - Rumours of statutory payments for the self-employed

The rumours in the press and online of the self-employed getting the lower of £2917 or 80% of net earnings over last 3 years have not been confirmed by the Government. This information has been taken from an amendment to a parliamentary bill that did not get enough support in parliament to get approved.
We are in a similar position with the 80% Coronavirus Job Retention Scheme and whether this is applicable to directors, unfortunately we are still awaiting confirmation from the Government on this.
However, I am hopeful that we will hear an announcement very soon confirming the position for the self-employed and directors.
I will provide an update as soon as I receive news.
In the interim if you need any business or personal support please don’t hesitate to drop me a line.
Best wishes,
Steve
Steven Hillman ACA
Chartered Accountant
Read our latest COVID-19 updates here: https://www.hillmans.co.uk/covid-19-updates

Saturday, 21 March 2020

COVID-19 Update 21-03-2020

Last night the Chancellor stood in 10 Downing Street and announced some new support for small businesses.  They can be summarised as…

Coronavirus Job Retention Scheme

HMRC will reimburse 80% of furloughed (basically another word for redundant) workers wage costs, up to a cap of £2,500 per person per month. HMRC are working urgently to set up a system for reimbursement as currently their systems are not able to facilitate payments to employers.

We haven’t noted any detail in the announcement as to whether this reimbursement will apply to company directors in owner managed businesses. There is an argument that a company with no directors working in the business is no longer a trading business. We should get more detail from HMRC next week, and we will advise further as soon as we can on this. 

While HMRC is working urgently to set up a system for reimbursement, we understand the existing system is not set up to facilitate payments to employers. 

Business that need short-term cash flow support, may benefit from the VAT deferral announced below and may also be eligible to apply for a Coronavirus Business Interruption Loan.

Friday, 20 March 2020

COVID-19 Update 20-03-2020

Chancellor has just finished speaking and...

-Government will pay 80% of wages for company employees who are not working, up to £2,500 a month.
-No VAT payments until after June.
-Payment on account tax payments due on 31 July 2020 deferred until 31 Jan 2021.

Will be reading the full details when published, and be updating our clients with a full overview ASAP.

In the interim if you have any queries or concerns please don't hesitate to drop me a line.

Best wishes,

Steve

Steven Hillman
Chartered Accountant

Thursday, 19 March 2020

Coronavirus (COVID-19) - An update for all of our clients

In light of the ever-changing situation around Covid-19 Coronavirus, I wanted to share with you what support and help there is available. Apologies for the general nature of this message but I wanted to get something out ASAP. I am available for you on an individual basis so please don’t hesitate to get in touch.

Friday, 28 February 2020

February 2020 Tax Tips & News


Welcome...

To February's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice in your own specific circumstances. We're here to help!                        

February 2020
· Loan charge repayments deferred
· CGT on cryptoassets
· Increased NMW rates from April 2020
· VAT and Brexit
· February questions and answers
· February key tax dates

Friday, 31 January 2020

January 2020 Tax Tips & News


Welcome...

To January's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice in your own specific circumstances. We're here to help!      
               
January 2020

· What does the General election mean for tax?
· HMRC advisory fuel rates from 1 December 2019
· Another IR35 loss for HMRC
· Business mergers and changes of ownership – payroll issues explained
· January questions and answers