Personal Taxes
Furloughed workers
If your employer cannot cover staff costs due to COVID-19, they may be able to access support to continue paying part of your wage, to avoid redundancies.
If your employer intends to access the Coronavirus Job Retention Scheme, they will discuss with you becoming classified as a furloughed worker. This would mean that you are kept on your employer’s payroll, rather than being laid off.
To qualify for this scheme, you should not undertake work for them while you are furloughed. This will allow your employer to claim a grant of up to 80% of your wage for all employment costs, up to a cap of £2,500 per month.
You will remain employed while furloughed. Your employer could choose to fund the differences between this payment and your salary, but does not have to.
If your salary is reduced as a result of these changes, you may be eligible for support through the welfare system, including Universal Credit.
We intend for the Coronavirus Job Retention Scheme to run for at least 3 months from 1 March 2020, but will extend if necessary.
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees
2020 Budget Report
This Report, which was written immediately after the Chancellor of the Exchequer delivered his Budget Speech, is intended to provide an overview of the latest announcements and recent measures most likely to affect you or your business.
See the full report at https://planpractice.co.uk/budget-2020/
More Property Tax and Mortgage Interest Relief but No Flying
Episode 2 Uploaded to YouTube
End of Tax Year Considerations
With a month to go before the end of the 2019/20 tax year, just some reminders for provisions to consider before the 5th April.
ISA allowance. If you haven’t used up your £20k this year, now is the time to think about moving funds into your ISA. You can put it straight into a cash ISA and then transfer it to another type after the year end without losing out or using up any of next year’s allowance.
Pension contributions. The annual tax free allowance is £40k. Particularly if you are a limited company there are significant tax savings to be made by making company contributions into your personal pension. To benefit you must make the payment as you can not make a tax-deductible provision in the accounts. There is a corporation tax saving of up to £7,600 per person to be made for 2019/20
It’s budget day next Wednesday. We’ll be listening and will communicate any adjustments to be made this tax year although we are not expecting any surprises. Then we can turn our attention to 2020/21.
Off Payroll Working (IR35)
As the 6th April is getting closer confusion over the implementation of the new rules applying to the private sector remains with HMRC updating guidance, changing the application of the rules and providing assurances that are resulting in more anxieties.
How HMRC will view and treat your position can found with the new and updated employment status checker.
https://www.gov.uk/guidance/check-employment-status-for-tax
Here you will find links to further guidance whether you are an employer, an intermediary or working through your own PSC.
Budget 2020
Not long now for Mr Javid’s Mr Sunak’s budget. We’ll have a full summary and report on 11th March one day!
Property Allowance
If your allowable expenses against property income is less than £1,000 you can elect to use the property allowance as partial relief against the income. This allows you to deduct £1,000 from your rental income and is beneficial if your costs are minimal. If the property is owned jointly then each of the joint owners can claim the allowance. If your rents are minimal (less than £1,000) then you can claim full relief and may not even need to complete a self assessment return. You can’t create a loss from the property allowance to carry forward but might be worth considering depending on your circumstances.
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
Property Disposal Returns
Sneaking under the radar come the new tax year is the Property Disposal Return. These have been in place for non-resident landlords for a few years now but from the 6th April will affect all UK residential property owners making a disposal of a property that is not their main residence. The tax due remains unchanged ( subject to next month’s budget of course) but will be payable within 30 days of completion along with a Property Disposal Return. This means that where you had 9 months from the end of the tax year in which the disposal was made, tax will have to be paid within a month of the sale!
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Help for Self Employed
Posted on
There will be more questions than answers and we’ll do our best to keep abreast of them to be up to speed on what is available and how to claim.
Welfare benefits of up to £1,800 per month. 80% of average earnings as declared over the last 3 years – up to £2,500 per month. Open to businesses with business profits up to £50K.
This scheme looks like it is to be adminstered by HMRC and will be up and running by the beginning of June – hopefully!
This entry was posted in Business Tax, News and Comments, Personal Taxes, Uncategorized and tagged Coronavirus, Help for Self Employed.