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

2020-05-04T22:18:28+01:00May 5th, 2020|Categories: Blog, COVID-19|Tags: , , , |

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 [...]

HMRC Release Details of SEISS Scheme

2020-05-04T22:32:00+01:00May 4th, 2020|Categories: Blog, COVID-19|Tags: , , , , , |

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 [...]

Government Announces “Bounce Back” Loans

2020-04-28T18:01:13+01:00April 28th, 2020|Categories: Blog, COVID-19|Tags: , , , |

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 [...]

Government to provide cash grants for frontline charities

2020-04-28T17:56:14+01:00April 28th, 2020|Categories: Blog, COVID-19|Tags: , , |

Charities across the UK will receive a £750 million package of support to ensure they can continue their vital work during the coronavirus outbreak, tens of thousands of charities will benefit from direct cash grants to ensure they can meet increased demand as a result of the virus as well as continuing their day-to-day activities supporting those in need. Highlights: £750 million available for frontline charities across the UK – including hospices and those supporting domestic abuse victims £360 million direct from government departments and £370 million for smaller charities, including through a grant to the National Lottery Community [...]

Profit extraction in 2020/21 – What is the optimal salary?

2020-04-01T20:00:49+01:00April 15th, 2020|Categories: Blog, Limited Company, PAYE|Tags: , , , , , |

A popular tax-efficient profit extraction strategy used by personal and family companies is to take a small salary and extract further profits as dividends. Where this approach is adopted, the starting point is to determine the optimal salary. While this will depend on personal circumstances and there is no excuse for not doing the sums, there are some general guidelines. Where the director does not have the requisite 35 qualifying years to provide access to the full single tier state pension paying a salary at least equal to the lower earnings limit for Class 1 National Insurance purposes (set [...]

HMRC urge people to prepare for CGT payment change

2020-04-01T19:40:32+01:00April 12th, 2020|Categories: Blog, HMRC, Taxation|Tags: , , , , |

Property owners are being urged to get ready for changes to the deadline of capital gains tax (CGT) payments. Broadly, from 6 April 2020, a UK resident who sells a residential property in the UK will have 30 days to tell HMRC and pay any CGT Tax owed. HMRC are currently developing a new online service to allow taxpayers to report and pay any CGT owed. A CGT report and accompanying payment of tax may be required where the taxpayer sells or otherwise dispose of: - a property that they have not used as their main home; - a holiday [...]

INCREASE IN WORKING TAX CREDITS

2020-04-09T21:16:48+01:00April 9th, 2020|Categories: Blog, COVID-19, Personal Finance|Tags: , , |

The government has announced that Working Tax Credits payments will be increased from 6 April 2020. As part of a number of measures to support the country during the COVID-19 pandemic, the basic element of Working Tax Credit has been increased by £1,045 to £3,040 from 6 April 2020 until 5 April 2021. The amount a claimant or household will benefit from will depend on their circumstances, including their level of household income. But the increase could mean up to an extra £20 each week. The government is also uprating Child Benefit, other tax credits rates and thresholds, and [...]

How To Claim For Your Employees’ Wages Through The Coronavirus Job Retention Scheme (CJRS)

2020-04-09T00:12:48+01:00April 9th, 2020|Categories: Blog, COVID-19|Tags: , , , |

The Government recently provided more details on how the CJRS works. Please note the online service you will use to claim is not open yet – we will let you know when it is. We have the capability to calculate and submit your CJRS Claim so please let us know if we can help. Overview of the scheme The principle behind the CJRS is that If you cannot maintain your current workforce because your operations have been severely affected by coronavirus (C19), you can furlough employees and apply for a grant that covers 80% of their usual monthly wage [...]

Changes to off-payroll working rules delayed until 2021

2020-04-01T19:37:57+01:00April 8th, 2020|Categories: Blog, HMRC, Limited Company|Tags: , , , |

Amid concerns about their potential impact during the coronavirus pandemic, the government has announced a one year delay to changes to the off payroll working rules, due to take effect from April 2020. In an announcement at the end of the parliamentary debate on the Budget speech, Steve Barclay, chief secretary to the Treasury, said that the government is postponing the reforms to the off payroll working rules (known as the IR35 rules) from April 2020 to April 2021. Off-payroll working rules, known as IR35, were introduced in 2000 to ensure that someone working like an employee, but through their [...]

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: [...]

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