Asif, Author at PMA Accountants

About Asif

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So far Asif has created 209 blog entries.

Are workers employees?

Asif2020-10-07T22:55:00+01:00October 11th, 2020|Categories: Blog|Tags: Employed, Employers, PAYE, Self Employed, Workers|

It is important to know whether a worker is employed or self-employed as there are many differences in the way in which they will be taxed. Broadly, employees are taxed under the PAYE system with income tax and Class 1 national insurance contributions (NICs) being deducted from payments made to them. Class 1 NICs are also payable by employers. In contrast, the self-employed pay income tax and Class 4 NICs direct to HMRC, and are also currently liable to Class 2 NICs. Some important differences are that: currently, self-employed people have a lower liability to NICs than employees (especially [...]

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Recording directors’ expenses correctly

Asif2020-10-07T22:50:02+01:00October 9th, 2020|Categories: Limited Company|Tags: Directors, Entrepreneurs, Expenses, Limited Company, Tax Tips|

It is only permissible for a company to deduct expenditure in computing its taxable profits if incurred wholly and exclusively for the purposes of the trade. Since a company is a separate legal entity that stands apart from its directors and shareholders, it will not incur personal expenses. However, many companies, particularly 'close' companies (broadly a company under the control of 5 or fewer participants) pay for personal expenses of the directors. It is important to note that where payments, either made to or incurred on behalf of a director, do not form part of their remuneration package, these [...]

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Kickstart for employers

Asif2020-10-07T22:19:11+01:00October 7th, 2020|Categories: COVID-19, PAYE|Tags: Covid-19, Employers, Kickstart|

Under the new Kickstart programme, the Government hopes to create roles for as many as 250,000 young people who are currently receiving Universal Credit (UC). Initially announced in the July Economic statement, the details of the scheme have now been published and the first placements should be available from November. Kickstart allows employers to receive funding for six-month work placements for 16 to 24-year-olds currently receiving UC, who are seen to be among the most vulnerable to unemployment. Applications for funding must be for new jobs - with the funding conditional on the firm proving they are additional jobs. [...]

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The Coronavirus Job Retention Scheme (CJRS) is changing

Asif2020-06-02T23:22:51+01:00June 3rd, 2020|Categories: COVID-19, PAYE|Tags: CJRS, Coronavirus, Covid-19, Employers, Job Retention Scheme, PAYE|

UK Chancellor Rishi Sunak outlined changes to the furlough scheme during the daily press briefing (29 May 2020). The Chancellor stated that in June and July the furlough scheme will continue as before, but employers will be asked to cover National Insurance and employer pension contributions in August. By September, businesses will pay 10% of wages for furloughed staff, and in October 20%, the UK chancellor said. This means the subsidy will taper off from August, with businesses expected to pay a greater share of their staff salaries, starting with covering National Insurance and pension contributions. From September the [...]

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Self-Employed get second grant from Government

Asif2020-06-02T23:06:52+01:00June 3rd, 2020|Categories: COVID-19, Self Employment|Tags: Covid-19, Grant, Income Support Scheme, SEISS, Self Employed, Self Employment, Self Employment Income Support Scheme|

Chancellor Rishi Sunak has said self-employed workers across the UK will be able to access a second Grant from the government to cover lost income while the country is in lockdown. The grants paid out by the Self-Employment Income Support Scheme (SEISS) will be worth 70% of a self-employed person's average monthly trading profits to cover three months' worth of income. They will be capped at £6,570. The scheme so far has been used by 2.6 million people and has paid out £6.8bn in claims to self-employed who have been affected by the impact of coronavirus on the economy. [...]

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Chancellor Extends Furlough Scheme Until October

Asif2020-05-12T18:40:03+01:00May 12th, 2020|Categories: Blog, COVID-19|Tags: CJRS, Coronavirus, Covid-19, Employees, Furlough, Job Retention Scheme, Payroll|

The government’s Coronavirus Job Retention Scheme will remain open until the end of October, The key points announced by Chancellor Rishi Sunak are: Coronavirus Job Retention Scheme will continue until end of October furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500 new flexibility will be introduced from August to get employees back to work and boost economy The Government stated as we reopen the economy, we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with [...]

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Check if you can claim a grant through the Self-Employment Income Support Scheme

Asif2020-05-06T16:46:18+01:00May 6th, 2020|Categories: Blog, COVID-19|Tags: Covid-19, Grant, SEISS, Self Employed, Self Employment Income Support Scheme|

HMRC updated their guidance on 4th May to outline the process for applying for SEISS. Full details: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. You will get a taxable grant based on your average trading profit over the 3 tax years: 2016 to 2017 2017 to 2018 2018 to 2019 HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then [...]

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Business Bounce Back Loan (BBBL) Update and How to Apply

Asif2020-05-04T22:18:28+01:00May 5th, 2020|Categories: Blog, COVID-19|Tags: BLOG, Bounce Back Loan, Covid-19, Small Business|

Chancellor Rishi Sunak has written to accredited lenders about how the Government wants BBLS to be run. He makes the point that as a 100% guaranteed loan scheme, the price of BBLS is critical to its success and that the loans need to ensure that these loans are affordable and accessible. He has come to the decision that the interest rate should be set at 2.5%. Legislation and regulation Amending the regulatory perimeter The Treasury has made a statutory instrument (SI) that amends the Regulated Activities Order (RAO) so that providing regulated small business loans of £25,000 or less [...]

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HMRC Release Details of SEISS Scheme

Asif2020-05-04T22:32:00+01:00May 4th, 2020|Categories: Blog, COVID-19|Tags: BLOG, Covid-19, Grant, SEISS, Self Employed, Self Employment Income Support Scheme|

On Friday 1 May 2020 the Government issued the legislation by way of a Direction to introduce the Self-Employed Income Support Scheme. At the same time HMRC issued more detailed guidance on the operation of the scheme. The Self-Employment Income Support Scheme will allow taxpayers to claim a taxable grant of 80% of their average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. Key points that have changed since the previous version of the guidance: HMRC guidance sets out information required to make a claim The taxpayer has to claim [...]

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Government Announces “Bounce Back” Loans

Asif2020-04-28T18:01:13+01:00April 28th, 2020|Categories: Blog, COVID-19|Tags: BLOG, Bounce Back Loan, Covid-19, Government Support|

The Government has announced a new 100% Government backed loan scheme for small businesses. Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor announced yesterday. Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic. Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days. Loans will be interest free for the first 12 months, and [...]

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