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Self-Employed get second grant from Government

2020-06-02T23:06:52+01:00June 3rd, 2020|Categories: COVID-19, Self Employment|Tags: , , , , , , |

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. [...]

Self-employment Income Support Scheme (SEISS)

2020-04-26T01:01:23+01:00April 26th, 2020|Categories: Blog, COVID-19, Self Employment|Tags: , , , |

The government has announced its intention to provide further support for the self-employed (including members of partnerships) in the form of a Taxable cash grant but does not need to be repaid. The scheme allows individuals to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the 3 months from March to May 2020. This may be extended by the government if needed. The taxable cash grant will be in the form of a single lump sum to cover the three months from March to May 2020. HMRC is [...]

Should I incorporate my business?

2020-05-15T19:37:27+01:00December 27th, 2019|Categories: Blog, Business, Limited Company, Self Employment|Tags: , , |

As things currently stand, the expected cut in the main rate of corporation tax to 17% from April 2020 is unlikely to happen, but current corporation tax rates remain pretty favourable. There are also other areas where company formation may help save tax. The costs and regulations involved with running a company are usually greater than trading as a sole trader or in partnership, and should not be overlooked. In addition, incorporation generally means an increase in administration, which some businesses may find burdensome. The starting point for dealing with companies and company directors is to remember that a limited company [...]

Spare time earnings may be tax-free

2019-08-23T16:22:36+01:00August 7th, 2019|Categories: Blog, Self Employment|Tags: , , |

The new trading tax allowance for individuals of £1,000 was introduced from 6 April 2017 and applies for the 2017/18 tax year onwards. In broad terms, the allowance means that individuals with trading income below the annual threshold may not need to report it to HMRC and may not need to pay tax on it. This allowance may be particularly useful to individuals with casual or small part time earnings from self-employment, for example, people working in the ‘gig economy’ (Deliveroo workers and such like), or small-scale self-employment such as online selling (maybe via eBay or similar). It means [...]

Making use of the trading allowance

2019-09-01T23:07:09+01:00November 18th, 2018|Categories: Blog, HMRC, Self Employment|Tags: , , , |

The introduction of the new trading and property allowances for 2017/18 onwards mean that those with low levels of income from these sources may not need to report it to HMRC. The trading allowance is £1,000 for 2017/18 and 2018/19. Broadly, those with trading income of less than £1,000 a year, no longer need to report it to HMRC. This may be particularly useful for people with casual or small part time earnings from self-employment, for example, someone who up-cycles old furniture for resale on eBay or similar. Where the trading income is more than £1,000, the trader has the [...]

Class 2 NICs to remain

2019-09-01T22:08:17+01:00October 20th, 2018|Categories: Articles & Guides, Blog, HMRC, Self Employment|Tags: , , , , |

Self-employed earners (i.e. sole traders or partners) over the age of 16 and below state retirement age are currently liable to both Class 2 and Class 4 National Insurance contributions (NICs) unless specifically excepted by provisions contained in the Social Security Contributions and Benefits Act 1992. Former Chancellor, George Osborne, made proposals to abolish Class 2 NICs and reform the system for paying Class 4 NICs. The proposals were designed to simplify the tax system for the self-employed and offer them more equal access to contributory benefits. However, the Treasury recently announced that it will not now proceed as [...]