We hope our latest bulletin finds you safe and well. While the country is hopefully past the peak of the Covid crisis, it’s clear there is no room for complacency. This week we alert you to another threat - a phishing scam preying on those applying for the Self Employed Income Support Scheme now in its fourth round of grants. Please beware.
If you need assistance with any of these updates, do get in touch.
HMRC have issued guidance on a temporary 3 year carry-back of trading losses for limited companies and unincorporated traders instead of the normal one year carry-back. This will potentially allow loss making businesses to obtain a refund of tax paid in those years. CLICK HERE for further details
Possible Reductions in Tax 2021 - Self-Employed
This alert applies to any person taxed as a self-employed trader during 2020-21 – it includes non-incorporated property businesses (buy-to-let owners for example). CLICK HERE for further details.
Averaging Profits for the Creative Sector
A special relief is available for creators of literary or artistic works under which they can claim to add together their profits for 2 years and be taxable on the average of those profits if certain conditions are met. This helps to even out fluctuating tax charges for creative persons who may pay little tax one year but perhaps higher rates of Income Tax the following year. CLICK HERE for further details.
Gateway Open for 4th SEISS Grant
The online service for the fourth grant is now available. The Self-Employed Income Support Scheme (SEISS) has been extended to September 2021 and details of claims for the fourth grant have now been released. This fourth grant covers February, March and April 2021. There will then be a fifth grant covering May to September 2021. The latest grant allows the self-employed to claim 80% of their average profits for the period up to 2019/20 and is again limited to £2,500 a month. DOWNLOAD Barringtons help sheet. CLICK HERE to access the Government website.
Are You Missing Out On Additional Tax Relief
HMRC offer Corporation Tax incentives to businesses who are investing in scientific or technology advancements. Many people believe this relief is for companies who undertake scientific research in a laboratory. Although these companies often do qualify, there are many other companies who may not realise it but could benefit from this generous tax relief. For further details download Barringtons Help Sheet
New 95% Mortgage Guarantee Scheme
The Government’s Mortgage Guarantee Scheme is now open to support a new generation in realising the dream of home ownership. This will increase the availability of 95% loan-to-value mortgage products, enabling more households to access mortgages without the need for prohibitively large deposits. Access Government website
Should You Register for UK GDPR
Everyone in business that handles personal data must register for data protection purposes with the Information Commissioners Office and most business will need to pay an annual fee. Understanding whether you are processing personal data is critical to understanding whether the UK GDPR applies to your activities. Download Barringtons GDPR information leaflet. For further details visit the Information Commissioners Office website.
How to Pay VAT Deferred Due to Coronavirus
Information has been added on penalties or interest that may be charged if you do not pay in full, or make an arrangement to pay, and how you may still be able to avoid these charges. The following webpage details how to pay VAT payments deferred between 20 March and 30 June 2020. You can pay now or join the new VAT deferral payment scheme. CLICK HERE for more information.
CJRS - Other Types of Employees You Can Claim For
The guidance on contractors engaged with the public sector, or by a medium or large-sized organisation, in scope of off-payroll working (IR35) rules has been updated. You can claim other types of employees - as long as they’re paid via PAYE. For further information on Coronavirus Job Retention Scheme please CLICK HERE
Beware Bogus HMRC Phishing Scams
HMRC is aware of a phishing campaign telling customers they can claim for the fourth Self-Employment Income Support Scheme (SEISS) grant as support during the coronavirus pandemic. Do not reply to the emails and texts, do not open any links in the messages and be aware that the emails & texts have been issued in various formats. CLICK HERE to access the Government website.
Review Your Profit Extraction Strategy for 2021-2022
This alert is a reminder that a new tax year has started and it may be prudent to review the way you extract funds from your company in the tax year 2021-22 e.g. salary, dividends and directors' loans etc. It is also important to note that extracting profits from your company may trigger a further tax and National Insurance charge. If you do not need the profits for personal use, consider leaving them in the company to extract later when this can be done more tax efficiently. For further details download this help sheet or drop us an email, email@example.com
Companies House Same Day Service - Update
You can use a same day service to electronically file a change of company name or incorporate a company (software filing only). You must apply before 11am. If you apply after 11am, your application will not be processed until the next working day. CH have suspended all other same day services until further notice. CLICK HERE for further details.
Up To £6,000 One-Off Cash Grant
The Government has called on councils to do their bit to continue supporting businesses. The Restart Grant scheme supports businesses in the non-essential retail, hospitality, leisure, personal care and accommodation sectors with a one-off grant, to reopen safely as COVID-19 restrictions are lifted. Eligible businesses in the non-essential retail sector may be entitled to a one-off cash grant of up to £6,000 from their local council. CLICK HERE to check if you are eligible for a Coronavirus Restart Grant.
Keep Your Business in The Pink
At Barringtons we put clients at the center of our business, offering advice to increase efficiency and profitability. As the health crisis subsides and the business side of life gets busier, perhaps now is the time to look at ways of refining your offering, reviewing your business systems and scheduling a tax planning meeting before your year end. CLICK HEREfor further details. Barringtons can advise you on all aspects of UK taxation and will assist you with compliance reporting obligations and any investigations by the tax authorities. Support covers all business tax matters, including preparing income and/or corporation tax computations and submitting your self-assessment returns, whether they be individual, partnership or company. You can also access a range of taxation advisory services, including assistance with wills, estate and financial planning and insurance for professional fees incurred during any investigation. Our specialist Tax and VAT service ensures that our clients have access to advice and support in a wide variety of areas.
Business Recovery Loan Scheme Update
The Recovery Loan Scheme supports access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic. Up to £10 million is available per business. The actual amount offered, and the terms are at the discretion of participating lenders. The Government guarantees 80% of the finance to the lender. As the borrower, you are always 100% liable for the debt. The scheme is open until 31 December 2021, subject to review. Loans are available through a network of accredited lenders listed here and please visit the British Business bank's website for further details.
A Reminder About Working From Home
Employers should decide whether it is appropriate or possible for people to work from home, CLICK HERE for further details. Guidance on the Government website outlines steps that an employer should take when considering who needs to come into the workplace. These steps include considering those at higher risk from COVID-19 and consulting with their workforce.
Guidance for Food Businesses
This has been updated for allowing hospitality businesses to serve food outdoors. Added information on ventilation and asymptomatic testing programmes is now also included. This guidance is intended for all workplaces involved in the manufacturing, processing, warehousing, picking, packaging, retailing and service of food. This also includes important information about the risk of community transmission of coronavirus (COVID-19) from circumstances or activities related to the workplace such as transportation and accommodation arrangements. For further details please CLICK HERE
Ventilation of Indoor Spaces
This Government information provides guidance on the ventilation of indoor spaces to stop the spread of coronavirus (COVID-19). Ventilation is the process of introducing fresh air into indoor spaces while removing stale air. Letting fresh air into indoor spaces can help remove air that contains virus particles and prevent the spread of coronavirus (COVID-19). Follow the link to the Government website
Download our FREE Business App and stay ahead of Government updates. It's FREE to download and FREE to use and is packed with business tools including a GPS mileage tracker and a COVID-19 help zone.
Working Safely During Covid
These 14 guides cover a range of different types of work. Many businesses operate more than one type of workplace, such as an office, factory and fleet of vehicles. You may need to use more than one of these guides as you think through what you need to do to keep people safe. Follow this link for further information.
The Government is now carrying out public health self-isolation compliance checks on individuals who have a legal duty to self-isolate (also known as quarantining) for 10 days following international travel. This means that if you are required to self-isolate, you may receive a visit from someone employed by a company on behalf of the government to make sure you are complying with your legal duty. CLICK HERE for further information.
Red List Travel Ban Countries
Countries from which entry to the UK is banned - 'red list' countries has been updated. If you have been in or through any of the 'Red List' countries in the previous 10 days, you will be refused entry to the UK. If you are a British or Irish National, or you have residence rights in the UK, you will be able to enter. You must quarantine in a Government approved hotel for 10 days.
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