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Reduction in the lifetime limit for entrepreneurs’ relief

2020-04-01T19:34:16+01:00April 5th, 2020|Categories: Blog, Limited Company, Taxation|Tags: , , , |

At Budget 2020 the Chancellor of the Exchequer announced that the lifetime limit of entrepreneurs' relief (ER) would be reduced from £10 million to £1 million for ER qualifying disposals made on or after 11 March 2020. Rules will also apply the revised limit to certain arrangements and elections that seek to apply the earlier £10 million lifetime limit. These rules are: - forestalling arrangements involving uncompleted contracts; and - elections made under TGCA 1992, s 169Q in connection with a share reorganisation or exchange. There are no transitional rules for disposals that take place after 11 March 2020, including where: [...]

Homeworking flat rate allowances increased

2020-04-01T19:15:38+01:00April 2nd, 2020|Categories: Blog, Limited Company, Self Employment|Tags: , , , |

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. 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 [...]

Deferral of VAT payments due to coronavirus (COVID-19)

2020-03-27T21:06:38+00:00March 27th, 2020|Categories: Blog, COVID-19|Tags: , , , |

The Chancellor announced a VAT payments deferral on 20 March to support businesses with cash flow during the COVID-19 pandemic. This means that all businesses with a UK VAT registration have the option to defer VAT payments due between 20 March and 3‌0‌‌ June. You therefore have until 3‌1‌‌ March 2021 to pay any VAT deferred as a result of this announcement. You do not need to inform HMRC if you wish to defer payment. You can opt in to the deferral simply by not making VAT payments due in this period. If you pay by Direct Debit you [...]

Covid-19 Self Employed Income Support Scheme Announced

2020-03-26T20:04:21+00:00March 26th, 2020|Categories: Blog, COVID-19|Tags: , , |

Chancellor Rishi Sunak has announced the Self-Employed Income Support Scheme to help Britain's 5m self-employed get through the coronavirus pandemic. Below is a quick summary which may help you navigate the announcement (you can read the full text here), but please note things are changing very quickly so what's accurate right now, might not be so in a few days time! We are aiming to keep this page on our website as up to date as possible so it is worth checking every so often. If you are self employed, you don't need to do anything right now Those eligible for the [...]

Coronavirus Job Retention Scheme

2020-03-25T11:55:45+00:00March 25th, 2020|Categories: Blog, COVID-19|Tags: , , , |

The Government has announced its plans for financial assistance to help employers retain employees for an extended period of time, although offering no work, and avoid lay-offs. It is called the Job Retention Scheme and, while little information has been published as to how it will work, we have set out below what we do know, which will be updated as more details are released. What is the Job Retention Scheme? It involves employers placing their employees on “furlough”. This is a term which is typically used in the US and essentially means putting employees on temporary leave of [...]

Covid-19 – Support for UK Businesses – Important Update

2020-03-25T11:43:31+00:00March 20th, 2020|Categories: Blog, COVID-19|Tags: , , , , |

Since our blog post yesterday covering some of the key changes made by Government likely to affect UK businesses (you can access the blog post here) there have been several additional measures announced. Please see below for details. If a business is concerned about being able to pay their tax as a result of the Coronavirus crisis they can call HMRC on 0800 015 9559. Though please be aware that HMRC are experiencing heavy demand at the moment, so it may take some time to get through. Should you like to read the Chancellor’s full speech you can do [...]

Covid-19 – Support for UK Businesses

2020-03-25T11:43:47+00:00March 19th, 2020|Categories: Blog, COVID-19|Tags: , , , , , , |

The Chancellor has set out a package of measures to support public services, people and businesses through this period of disruption caused by COVID-19. This includes a package of measures to support businesses including: Statutory Sick Pay relief package for SMEs 12-month business rates holiday for all retail, hospitality and leisure businesses in England Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000 A Business Interruption Loan Scheme [...]

Curtailment of letting relief

2020-03-10T12:12:24+00:00March 10th, 2020|Categories: Blog, Property|Tags: , , , |

Landlords have been hit with a number of tax hikes in recent years, and this trend shows no signs of abating. From 6 April 2020, lettings relief – a valuable capital gains tax relief which is available where a property which has at some point been the owner’s only or main residence is let out – is seriously curtailed. Now Under the current rules letting relief applies to shelter part of the gain arising on the sale of a property which has been let out as residential accommodation and which at some time was the owner’s only or main [...]

VAT and Brexit

2020-02-11T22:21:09+00:00February 16th, 2020|Categories: Blog, VAT|Tags: , , |

HMRC have not yet issued any guidance as to how imports and exports to the EU and out with the EU should be recorded for VAT return purposes after 31 January 2020, what happens with the reverse charge, and what should be recorded in boxes 8 & 9 of the VAT return. The last guidance given was in the case of a no deal Brexit and we are monitoring any new advice as it is issued. HMRC have said: - There will be NO requirement to complete an EC sales list for sales after 1 January 2021. - Intrastat returns [...]

Increased National Minimum Wage rates from April 2020

2020-02-11T22:17:18+00:00February 14th, 2020|Categories: Blog, PAYE|Tags: , , , |

Some three million workers are set to benefit from increases to the National Living Wage (NLW) and minimum wage rates for younger workers from 1 April 2020. The compulsory NLW is the national rate set for people aged 25 and over. The NLW is enforced by HMRC alongside the national minimum wage (NMW), which they have enforced since its introduction in 1999. Generally all those who are covered by the NMW, and are 25 years old and over, will be covered by the NLW. These include: - employees; - most workers and agency workers; - casual labourers; - agricultural [...]

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