Weekly Update - 9th April 2020
Below I have summarised all the main tax updates we’ve seen this week from HMRC:
• HMRC release details of how to claim 80% of Furloughed pay
• Important changes to Capital Gains Tax
• Coronavirus and the High Income Child Benefit Charge
• Claim working from home allowance during the coronavirus
As always if you need any support or advice please don’t hesitate to contact me.
Wishing you a Happy Easter and have a good bank holiday weekend.
HMRC release details of how to claim 80% of Furloughed Pay
HMRC has suggested that their online portal to claim the 80% of furloughed pay will launch on the 20th April. This will require the use of an online PAYE account.
If we prepare your payroll for you, you can rest assured we will take care of this for you.
For full details read our blog post here: https://blog.hillmans.co.uk/2020/04/claiming-furloughed-pay.html
Important changes to Capital Gains Tax
From the 6th April 2020 HMRC made a number of changes to Capital Gains Tax, Private Residence and Letting Reliefs on properties.
The changes can be summarised as follows:
• 30 days to tell HMRC and pay any CGT Tax owed on property sales
• Transfers between married couples equalised
• Final period of ownership reduced from 18 months to nine months
• Lettings relief unavailable for periods where owner is not occupying
You can read the full details on our blog post here: https://blog.hillmans.co.uk/2020/04/important-changes-to-capital-gains-tax.html
Coronavirus and the 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.
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. Read more details here: https://blog.hillmans.co.uk/2020/04/claim-working-from-home-allowance.html
If I can be of any assistance please drop me a line.
Stay safe and well.
Steven Hillman ACA