sunleyandco

Self-Assessment threshold change

mary@sunleyandco.co.uk (Mary Beavis) — Tue, 26 Sep 2023 11:29:55 GMT

From tax year 2023 to 2024 onwards, the Self-Assessment threshold for taxpayers taxed through PAYE only will change from £100,000 to £150,000.  

Affected individuals do not need to do anything now as the Self-Assessment threshold for 2022 to 2023 tax returns remains at £100,000.  They will receive a Self-Assessment exit letter if they submit a 2022 to 2023 return showing income between £100,000 and £150,000 taxed through PAYE and they do not meet any of the other criteria for submitting a Self-Assessment return.

For the 2023 to 2024 tax year onward taxpayers will still need to submit a tax return if their income taxed through PAYE is below £150,000 but they meet one of the other criteria for submitting a Self-Assessment return, such as:

receipt of any untaxed income,
partner in a business partnership,
liability to the High Income Child Benefit Charge, or
self-employed individual and with gross income of over £1,000.

How much is my business worth?

Wed, 19 Jul 2023 11:07:44 GMT

This is a question many of our clients want answering! The truth is, it depends on so many factors. The ultimate value of a business is the price a willing buyer is prepared to pay for it. Valuing private businesses is definitely an art and not a science!

The prevailing economic climate and state of the business’ sector can affect company valuation for better or worse, as can your reasons for selling. If you need a fast sale due to ill health, for instance, the value may be lower than if a sale was taking place under more favourable circumstances.

Valuing a business is a complex process and we, along with fellow professionals (e.g. solicitors), are available to support you throughout.

So, what are the most common methods of valuing a business?

Price to earnings ratio (P/E)

The price to earnings ratio uses multiples of profit, so may be an appropriate valuation method if you own a well-established business with a good track record of profits. ‘Price’ refers to the company’s current share price, and ‘earnings’ to the earnings per share (EPS). The P/E ratio indicates the business’ expected growth in earnings per share in the future.

Discounted cash flow

Discounted cash flow relies on estimating future cash flows for the company, and a residual business value, and may be suited to businesses with few assets.

Entry cost

Entry cost valuation involves calculating how much it would cost to build your business to the stage that it’s reached now, including start-up and recruitment costs, marketing, and the value of assets. Any savings that could have been made should then be deducted to arrive at the valuation.

Asset valuation

The asset valuation method may be suitable if your business is well established and owns high levels of tangible assets. The Net Book Value (NBV) of assets is calculated, then adjusted to take account of external factors such as depreciation and inflation.

Valuation based on industry

Some businesses are valued based on the industry in which they operate. The retail industry is one such example, where the number of outlets is an important element for consideration. Industry ‘rules of thumb’ use factors specific to an industry and can provide a more accurate calculation in some cases.

Other considerations when valuing your business

Intangible assets are a key factor when valuing a business. Intellectual property, goodwill, business reputation, and even a premium business location, can all add considerable value in the eyes of potential purchasers.

Spotlighting these intangible assets also allows you to improve their value where appropriate – for example, registering ownership of a trademark or patent, building up their reputation even further, or improving the condition of your business premises.

Deadline for voluntary National Insurance contributions extended to April 2025

Thu, 06 Jul 2023 11:44:38 GMT

The UK government is giving people more time to pay National Insurance contributions towards their State Pension.

Taxpayers now have until 5 April 2025 to fill gaps in their National Insurance record from April 2006 that may increase their State Pension - an extension of nearly 2 years.

Extending the voluntary National Insurance contributions deadline until 2025 means that people have more time to consider whether paying voluntary contributions is right for them and ensures no-one need miss out on the possibility of boosting their State Pension entitlements.

The original deadline was extended to 31 July 2023 earlier this year, and tens of thousands of people have taken the opportunity to pay voluntary contributions to HM Revenue and Customs (HMRC) since then. The revised deadline is expected to enable tens of thousands more to do the same.

See: Deadline for voluntary National Insurance contributions extended to April 2025 - GOV.UK (www.gov.uk)

HMRC raises the interest charge on late payment of tax

Tue, 23 May 2023 10:43:45 GMT

The Bank of England Monetary Policy Committee announced on 11 May 2023 that it would increase the Bank of England base rate to 4.5% from 4.25%. HMRC interest rates are linked to the Bank of England base rate. Because of the change in the base rate, HMRC interest rates for late payment and repayment will increase.

These changes will come into effect on 31st May 2023 and will be as follows:

· Late payment interest rate – 7%

· Overpayment interest rate – 3.5%

If you already have your tax money saved then it may be worth considering paying your tax early as it is rare to find a business account with this rate of interest.

Similarly if you have arrears, make sure you are accessing the cheapest finance available as ‘borrowing from HMRC’ can no longer be considered ‘cheap’ as it may have been in the past.

See: Rates and allowances: HMRC interest rates for late and early payments - GOV.UK (www.gov.uk)

HMRC Scams - Don't get caught out

Mon, 24 May 2021 11:09:48 GMT

Sadly the amount of scams appears to be on the increase - please be extra vigilant!

As reported by HMRC, and from our own experience, there are increases in scam phone calls, emails and texts. The calls can often be quite aggressive and upsetting and certainly make you anxious.

If someone contacts you claiming to be from HMRC saying that you owe tax and face arrest, are due a tax refund, that your National Insurance number has been compromised or asking you to transfer money or give bank or other personal details, it might be a scam. Please contact us if you are not sure how to proceed but do not provide any details.

We will have been advised if there is any proposed action, we will also have told you if you are due a refund. HMRC will never contact you by phone about these matters.

The advice from HMRC is as follows:

Search GOV‌‌‌‌.UK for our 'scams checklist' and to find out how to report tax scams. You can also access the National Cyber Security Centre’s new guide on how to stay secure online and protect yourself or your business against cybercrime by searching 'Cyber Aware'.

If you have any concerns whatsoever please do call us in the first instance.

Client meetings

Fri, 14 May 2021 15:50:30 GMT

As the world slowly returns to 'normal' we are looking forward to being able to meet clients face to face again. Of course our priority remains to keep our wonderful clients and team safe so we are starting by only accepting pre-booked appointments at the moment and only a set number per day - unfortunately no 'walk in' appointments will be possible.

We are happy to continue with video and telephone meetings where clients are more comfortable with this.

If you would like an appointment please do contact the office and we will arrange this for you.

It goes without saying these days - please do not attend the office if you are feeling unwell or have any coronavirus symptoms.

Self Employed Grants 4 & 5

mary@sunleyandco.co.uk (Mary Beavis) — Fri, 05 Mar 2021 14:08:01 GMT

The fourth grant will be available to claim soon - get ready!

You will soon be able to make a claim for the fourth self employed income support grant if your income is still being impacted by the ongoing pandemic. Although notification has come late in the day you should be able to make claims from April.

The criteria is slightly different this time and details are included below. If you haven't been able to claim before you may now be entitled to claim so it is definitely worth checking.

As with the previous grants it is really important that you are able to prove your business has been impacted by coronavirus and you must keep evidence of these - HMRC will be starting checks later this year (they have employed a lot more officers to help with this). A fifth grant will be available later in the year and this grant actually places a condition on how much income will have had to drop to determine what the size of your grant will be - record keeping is going to be more important than ever!

Some of the following detail may be updated over the coming weeks as HMRC finalise the legislation.

Eligibility for the fourth grant

HMRC will first look at your 2019/20 Tax Return recently submitted. You will not qualify for this grant if your 2019/20 Tax Return has not been submitted by 2nd March 2021.

For the 2019/20 year, your trading profits must be no more than £50,000 and non-trading income must not exceed your trading income. If you do not qualify based on this, then HMRC will next look at your 2016/17, 2017/18 and 2018/19 Tax Returns. Other criteria to meet are:

· You must have traded in the two years 2019/20 (and had your Tax Return submitted by 2nd March 2021), and 2020/21

· You must either:

o be currently trading but are impacted by reduced demand due to coronavirus

o have been trading but are temporarily unable to do so due to coronavirus

· You must be able to declare that:

you intend to continue to trade
you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus

HMRC will contact you mid-April if you are eligible and will give you your personal claim date.

The above also means that those who are newly self employed in the 2019/20 tax year can now benefit from the 4th grant if you have been affected by Coronavirus between February and April 2021.

About the Grant

The grant will be calculated at 80% of 3 months’ average trading profits, focussing on the years 2019/20, 2018/19 and 2017/18. Now that 2019/20 is being taken into the calculations, this may change the amount of grant you receive and may even change your eligibility. The grant will be capped at £7,500 and will paid in one instalment. As HMRC are still processing 2019/20 Tax Returns that have recently been submitted, the claim cannot be made until late April and you will have until 31st May to do it.

Fifth Grant

There is due to be a fifth and final grant for the months of May to September that will be available to claim from late July. The eligibility on this one relates to your turnover in the year April 2020 to April 2021 and will be worth:

· 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more

· 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%

Further details will be provided on the fifth grant in due course.

If you make a claim, it is strongly recommended that you record how you have been impacted by Coronavirus and keep evidence along the way, in case of future investigations by HMRC.

VAT deferral scheme

mary@sunleyandco.co.uk (Mary Beavis) — Fri, 19 Feb 2021 09:25:50 GMT

Do you need to set up a time to pay arrangement?

If you deferred VAT payments last year due to Coronavirus and you cannot settle in full by 31st March you must apply for time to pay to ensure that this is settled by 31st January 2022. Below is the guidance issued this week by HMRC:

VAT deferral new payment scheme – opt in from the end of February 2021

If businesses deferred VAT due from 20 March to 30 June 2020 and still have payments to make, they can opt into the VAT deferral new payment scheme to pay their deferred VAT over a longer period.

The payment scheme is expected to open on 23 February 2021 and close at the end of June 2021. If your client opts in, they can make up to 11 smaller monthly instalments, interest free.

Your client can opt in to the scheme online without the need to call. Go to VAT deferral for more information, your client can opt in quickly and simply online when the scheme opens. Please note that HMRC is unable to provide an agent service for this scheme.

If your client can pay their deferred VAT by 31 March 2021 they should do so.

Businesses that need more help to pay their deferred VAT should contact HMRC

Self employed - third grant available - but be careful of the small print!

Fri, 27 Nov 2020 08:42:02 GMT

As we come to the end of lockdown 2.0 so the ability to claim the third self employed income support grant will start.

This grant is to be paid at the same level as the first grant - 80% of three months average profits based upon previously submitted Tax Returns. It is however really important that claimants of this grant take the time to assess the new criteria for making the claim. Previously a business had to be able to say that it has been adversely affected by coronavirus, now you have to be able to demonstrate and evidence a reduction in income, not an increase in expenses.

HMRC have made it clear that the y will be looking carefully at 2020/21 Tax Returns and expecting to see a reduction in income from those who have made grant claims.

If you were not eligible for the first and second grants, you will not be eligible for the third.

Usual criteria for all grants:

· Must be a self employed individual or part of a partnership

· Must have traded in the tax years 2018-19 and 2019-20 (with Tax Returns submitted to HMRC by 23rd April 2020)

· Trading income must not exceed £50,000 in any one year from 2017/18 to 2019/20

· Non-trading income in total for the tax years 2017/18 to 2019/20 must not exceed your trading income in total for those years

· You must either be:

o Currently trading but are impacted by reduced demand due to Coronavirus

o Temporarily be unable to trade due to Coronavirus

· You intend to continue to trade

The additional criteria relating to this grant and replacing 'adversely affected' is:

· You must make an honest assessment and declare that you reasonably believe your business to have a significant reduction in profits

· Your business must have had a new or continuing impact from Coronavirus from 1st November 2020 to 29th January 2021

If you are eligible, the claim portal will open from 30th November 2020 and you will have until 29th January 2021 to make the declaration and claim.

Income from all three grants received in this current tax year must be included in your 2020/21 Tax Return and tax and NI be paid on them accordingly.

As the new criteria is suggesting that you forecast your profits for the next couple of months you could choose to delay your claim until nearer the claim deadline to be sure of your position. It has been made clear as mentioned above, that HMRC will expect to see a reduction in profits for the tax year to be satisfied that your claim was valid, and respective reviews will take place. HMRC have also commented that a significant increase in expenditure (such as PPE) that result in reduced profits does not count for this grant to be valid.

Currently, there is still due to be a fourth grant proposed covering the months February to April 2021 and further guidance on this will be released nearer the time.

Extended support for the self employed

Thu, 05 Nov 2020 15:41:30 GMT

After several changes in the last week alone it has been announced that the next grant for the self employed will be increased to cover 80% of average earnings for three months - a maximum of £7,500. Previously this was to be only 40%. We understand that applications will open on 30th November with grants paid from the 14th December.

We are still awaiting the formal Treasury Direction for confirmation as to the criteria and timing of this payment and updates will be made in due course.

A fourth grant will be made available in the first quarter of next year but no detail has yet been announced with regard to this.

Lockdown v2.0 - What help is available? Edited 6th November 2020

Mon, 02 Nov 2020 09:34:07 GMT

What assistance is available for businesses under lockdown v2.0?

What help is available is a question everyone wants to know the answers to. As before this is constantly changing, this week alone we have had three different incarnations. Below is the information we know today as at 6th November. Later articles will cover more up to date information.

Employers
What we know right now is that the furlough scheme is to be extended until the end of March. The previously announced Job Support Scheme (JSS) will be on hold and the Job Retention Grant has disappeared (for the time being). The main points to note so far are:

Minimum furlough period of 7 days
Eligible employees must have been on the payroll between 20th March and 30th October
Employees don't have to have been furloughed under the original scheme to be eligible for this
80% of unworked hours will be funded. Employers are responsible for national insurance and pension
Flexible furlough can be applied

Businesses forced to close
The local authorities have control over grants for businesses forced to close. Details can be found on local council websites.

Grants will initially be based upon rateable value and paid per 2 weeks of closure.
Rateable value up to £15,000 = £667 per two weeks
Rateable value £15,001 to £50,000 = £1,000 per two weeks
Rateable value £51,000 + = £1,500 per two weeks

Self employed
As announced on the 5th November a further grant of 80% of average profits will be paid to cover the period November to January. A fourth grant will be available covering February to April but details will be announced later as to what value this will be. Details of how to claim will be published on 23rd November and we believe that payments will be made from 14th December.

A maximum of £7,500 will be paid for the period November through to January and is based on previous eligibility even if you did not make a claim.

Job Support Scheme - UPDATED NOW POSTPONED

Mon, 26 Oct 2020 16:55:10 GMT

Further changes and extensions to the Job Support Scheme have been announced

DUE TO THE EXTENSION OF THE FURLOUGH SCHEME THE JOB SUPPORT SCHEME HAS NOW BEEN POSTPONED. IT IS NOT KNOWN IF THIS WILL FOLLOW THE FURLOUGH SCHEME ENDING IN MARCH 2021 OR IF IT WILL BE WITHDRAWN ALTOGETHER.

As per the previous post, the UK government have been trying to put in place further help for employers for when the Furlough Scheme comes to an end on 31st October 2020. Regular changes and updates have been occurring even up to last week (22nd October), the scheme was always supposed to be flexible but the changes have been difficult for businesses to keep up to date with.

From 1st November, the government will be launching two new schemes, the “Job Support Scheme – Open”, and the “Job Support Scheme – Closed”. The schemes will run for six months to 30th April 2021 and employers do not need to have used the previous furlough scheme to apply for either of the following:

Job Support Scheme – Open

This is directed at businesses that can remain open and have some hours available to staff when not all usual hours can be worked in the hope to save potential redundancies. The employee must work at least 20% of their “usual hours” to qualify for a claim. The reduction in hours must be agreed in writing with the employee. A calculation will need to be made to determine the “unworked hours”. The employer must then pay the hours worked AND an additional 5% of the unworked hours to the employee, PLUS the governments contribution which will be an additional 61.67% of the unworked hours. This will then mean the employee is paid at least 73% of their normal wage. A claim can then be made to HMRC for their 61.67% contribution after salaries have been paid. This is a reimbursement of wages to the employer.

Conditions applied and further details:

Employees must be on the payroll between 6th April 2019 to 23rd September 2020 and an RTI submission has been made to HMRC informing payment to the employee has been made in that time.
Staff on any type of contract are eligible for this scheme, including those on zero hour contracts.
Pension and NI contributions must continue to be paid at the cost to the employer.
Communications with the employee, and calculations for usual and worked hours must be kept for 5 years and be made available at HMRC’s request.
Calculations for “usual hours” are based on the same methodology used for the Furlough claims. Please see here (section 5.2 Usual Hours and onwards) for further guidance.
The employers 5% payment will be capped at £125 per month and HMRC’s contribution of 61.67% will be capped at £1,541.75 per month.
The employer can top the employee’s wages up further if they choose, at their own cost.
Employees can switch on and off the scheme where needed, and working patterns/hours can change from month to month but they must have a minimum of 7 consecutive days.
The online portal for the first grant does not open until 8th December and all future claims will be paid on a monthly basis. Agents are authorised to do this on employers behalf if normal payroll duties are usually carried out for them.

Job Support Scheme – Closed

This is for those businesses that have been forced to close due the Coronavirus restrictions put in place by the UK government. It includes businesses that have been restricted to takeaway and collection only services, and businesses that have been restricted to only providing food and/or drinks outdoors. It is to support those employees whom cannot work and potentially save a redundancy situation in the hope that business can resume when the restrictions are lifted. Those employees that cannot work during this time will be paid two thirds of their “usual pay” from the employer and this will be 100% reimbursed to the employer by HMRC by making a claim once the salary has been paid. The two thirds payment will be capped at £2,083.33 per month meaning no further salary needs to be paid after this value for the month. If the employer wishes to pay more to the employee, that is to their discretion and cost.

Conditions applied and further details:

Employees must be on the payroll between 6th April 2019 to 23rd September 2020 and an RTI submission has been made to HMRC informing payment to the employee has been made in that time.
Staff on any type of contract are eligible for this scheme, including those on zero hour contracts.
A claim cannot be made for any employee that has been made redundant or is serving contractual or statutory leave during the claim period.
A written agreement must be in place with each employee whereby work has temporarily ceased.
Communications with the employee, and calculations for usual pay must be kept for 5 years and be made available at HMRC’s request.
Pension and NI contributions must continue to be paid at the cost to the employer and claims cannot be made until these payments, and the salary itself, have been made.
The online portal for the first grant does not open until 8th December and all future claims will be paid on a monthly basis. Agents are authorised to do this on employers behalf if normal payroll duties are usually carried out for them.

The conditions of the above schemes will be reviewed by the government in January 2021 and so if there are any changes you need to be informed of, we will communicate this to you in due course.

It has been noted that HMRC intend to publish the names of all employers using either of the above schemes and so the public can report, with evidence, if they believe an employer has used the scheme fraudulently.

Winter Economy Plan

mary@sunleyandco.co.uk (Mary Beavis) — Thu, 24 Sep 2020 15:11:10 GMT

Job Support Scheme and further help for self employed

NEW JOB SUPPORT SCHEME ANNOUNCED

To start from 1 November 2020 and designed to replace the current Job retention (“furlough”) scheme which ends 31 October 2020, this scheme will be available to all small and medium-sized businesses, larger businesses must show their turnover has fallen during the pandemic. We understand that employers can use the new scheme even if they have not previously used the furlough scheme.

The scheme will last for six months to 30 April 2021 and to be eligible employees will need to be working a minimum of 33% of their hours. For the remaining hours not worked the Government and employer will pay one third. of wages each.

This means:

Employers will continue to pay the wages of staff for the hours they work - but for the hours not worked, the government and the employer will each pay one third of their equivalent salary.

Employees who can only go back to work on shorter time will still be paid two thirds of the hours for those hours they can’t work.

The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.

We await the guidance as to how this will work in practice.

SELF-EMPLOYED INCOME SUPPORT SCHEME

To ensure the self employed will also get further support, the existing self-employed grant (SEISS) will also be extended on the same basis as the job support scheme.

An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but continue to be adversely affected by coronavirus. The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of £1,875.

An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April.

VAT CUT FOR HOSPITALITY SECTOR CONTINUES

The reduction in VAT to 5% for the hospitality and tourism sector will be extended until 31 March 2021.

DEFERRAL OF VAT BILLS

Up to half a million businesses who deferred their VAT bills will be given more time to pay through the New Payment Scheme, which gives them the option to pay back in smaller instalments. Rather than paying a lump sum in full at the end March next year, they will be able to make 11 smaller interest-free payments during the 2021-22 financial year.

SELF-ASSESSMENT TAXPAYERS – TIME TO PAY EXTENSION

Approximately 11 million self-assessment taxpayers will be able to benefit from a separate additional 12-month extension from HMRC on the “Time to Pay” self-service facility, meaning payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.

BOUNCE BACK LOANS - FLEXIBILITY GIVEN TO PAY BACK AMOUNTS BORROWED

More than a million businesses who took out a Bounce Back Loan will get more repayment time through a new Pay as You Grow flexible repayment system.

This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses.

The Government also intends to give Coronavirus Business Interruption Loan Scheme lenders the ability to extend the length of loans from a maximum of six years to ten years if it will help businesses to repay the loan.

The chancellor also announced an extension in applications for the government’s coronavirus loan schemes until the end of November.

Further guidance will be issued in due course.

See: https://www.gov.uk/government/news/chancellor-outlines-winter-economy-plan

Second self employed grant is now available

mary@sunleyandco.co.uk (Mary Beavis) — Mon, 17 Aug 2020 10:31:41 GMT

This is a subtitle for your new post

The second self employed grant is now available to claim. The claim window will be open until 19th October 2020. You can make a claim for this grant based upon the same conditions as the first grant plus you must be able to demonstrate that you have been adversely affected by coronavirus on or after 14th July 2020. There is no quantifiable amount by which you must have been affected but you must maintain records to demonstrate this and claims will be reviewed over the next 5 years.

You do not need to have claimed the first grant to be eligible. There is also provision for payments to be made to parents who took time out to have children, there is more information for new parents on gov.uk

This grant is for 70% of average trading profits, the grant payment will be based upon three months worth of trading profits and capped at a maximum of £6,750.

Reduction in VAT rates for hospitality businesses

mary@sunleyandco.co.uk (Mary Beavis) — Mon, 13 Jul 2020 11:34:31 GMT

Changes to VAT rates from 15th July

From 15th July a reduced rate of VAT will apply to certain supplies in the hospitality sector. Rather than 20% VAT a lower 5% rate will be applied to food and drink consumed onsite, with the exclusion of alcohol, hot take away food, overnight accommodation and tourist attractions.

Businesses must make sure that they are ready to apply these new rates and that changes have been made to their VAT records, till systems and software where applicable.

Please do contact us if you need further information on how these changes will affect you.

Eat Out to Help Out Scheme

Mon, 13 Jul 2020 11:26:15 GMT

Register now if you want to be involved

As announced last week, the Eat Out to Help Out scheme is available from 3rd to 31st August to encourage people back to restaurants and other eating establishments.

A 50% discount, up to £10 per diner, can be given and refunded through this scheme. It can be applied on Mondays, Tuesdays and Wednesdays only and applies to on premise consumption only. It does not include take away food, alcoholic drinks or private parties.

Establishments must register to use the scheme and this can be done from 13th July. As agents we cannot do this for our clients.

For more details please see the HMRC guidance - here .

Flexible Furlough starts on 1st July

mary@sunleyandco.co.uk (Mary Beavis) — Thu, 25 Jun 2020 10:57:49 GMT

Flexible Furlough starts on 1st July

From 1st July the Furlough scheme is changing (see earlier posts for more detail) to try and encourage businesses to begin, or increase, their trade again. Over the coming months the funding will also be reduced until the scheme ends on 31st October.

Flexible furlough means that employers will have the ability to bring back workers part time if needed and take people on and off furlough more easily.

The calculations of pay under this new arrangement are however very complex and if you are completing these claims yourself we recommend following the HMRC guidance carefully - or getting professional advice.

Please follow this link https://clientresources.co.uk/coronavirus-job-retention-scheme/ for more detailed guidance.

Here is a link to the HMRC guide for employers https://www.gov.uk/government/publications/coronavirus-job-retention-scheme-step-by-step-guide-for-employers

Client Resources - dedicated site

Thu, 11 Jun 2020 13:47:18 GMT

Resources to help you at this time

The good people at 2020 Innovation have allowed us to share a website entirely devoted to resources to assist our clients through these difficult times. Please look around this site as it contains a whole host of resources to help you, and check back regularly for updates.

https://clientresources.co.uk/

Changes to Coronavirus Grants

Mon, 01 Jun 2020 08:32:54 GMT

Further changes and extensions have been announced to both the Coronavirus Job Retention Scheme (CJRS) and the Self Employed Income Support Scheme (SEISS)

As per announcements made on the 29th May and 12th June, the following changes are being made to the CJRS and SEISS as follows:

CJRS

The scheme will continue at the current funding rate throughout June and July 2020
No new claims can be made after 30th June, this means that workers will have to have been furloughed on or before 10th June to be eligible
From 1st July it will be possible to bring workers back on a part time basis and use the CJRS to make up their usual hours based upon the 80% funding previously in place
From 1st August employers will no longer be able to reclaim for employers NI and pension contributions
From 1st September the funding will drop to 70% of wages costs, employers will be required to make this up to 80%
From 1st October the funding will drop to 60% of wages costs, employers will be required to make this up to 80%
On 31st October the scheme will be withdrawn

SEISS
The government will provide a further 3 month grant for the self employed to cover earnings through June, July and August where your trade has been adversely affected by the coronavirus pandemic. This grant however will fall to 70% of average monthly profit (based on the previous three Tax Returns 2016/17-2018/19) capped at a maximum of £6,570.

You do not have to have claimed the first grant to be able to claim this second grant.

Applications will be made in August.

The scheme will then be withdrawn.

Self Employed Income Support Grant

Mon, 04 May 2020 14:14:23 GMT

Get ready to make your claim

HMRC will shortly start contacting eligible tax payers inviting them to make their claim for the self employed grant (from 13th May). To facilitate this tax payers will need a Government Gateway account. If you don't have one, get signed up now in good time (see link below).

Tax payers with self employed income below £50,000, averaged over the last three tax years (or less if a younger business), for whom self employment made up more than 50% of their total income and who have suffered a loss in income as a result of the Coronavirus pandemic, are entitled to make a claim.

The grant claim will be equal to 80% of three months average profits based upon the last three years submitted Tax Returns.

Agents will not be able to complete the claims for you.

Check if you are eligible here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme After entering your UTR and NI number you can continue and set up your Government Gateway account from here so you are ready to make your claim.

When you make the claim keep a note of your reference number, print or screen shot the calculation shown, and also keep records as to how your business was adversely affected by the coronavirus. Claims will be subject to review by HMRC in the future.

When making the claim you will be asked to answer three questions:

Did you trade in 2019/20?
Do you intend to trade in 2020/21?
Has your business been adversely affected by the coronavirus pandemic?

Additional grant funding may be available

Mon, 04 May 2020 13:49:51 GMT

Additional grant funding may be available to businesses who previously did not qualify for local authority grants. On 2nd May the following announcement was made https://www.gov.uk/government/news/top-up-to-local-business-grant-funds-scheme giving hope to some business owners. Keep an eye on your local authorities website if you think this may benefit you. For York residents see here: https://www.york.gov.uk/news/article/178/council-gets-ready-for-new-grants-scheme

Covid-19 - What Support is Available?

Mon, 30 Mar 2020 10:09:45 GMT

Updated 14th May 2020

Please find below a summary of the measures that are available to help businesses and the self employed throughout this extraordinary and worrying time. Legislation is being updated and clarified daily and as such this article will be updated as soon as possible after such clarifications. Please be aware that a lot of the reliefs and help available is automatic, or instigated by you, and as such please be extra cautious of unsolicited calls and emails as the level of fraud and 'scams' surrounding this situation is, sadly, high:

Self employed grants are available where self employment made up more than 50% of your taxable income on your 2018/19 Tax Return and earnings from self employment were less than £50,000 (average over last three years). A grant will be paid based upon average monthly profits over the last three years (up to a maximum of £2,500 per month) as reported on submitted Tax Returns. As of the week commencing 4th May HMRC are starting to contact eligible taxpayers. To facilitate payment of the grant a Government Gateway account will be needed. Where an accountant has always submitted your Tax Returns on your behalf you may not have your own Government Gateway. You can check eligibility here https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference

If a 2019 Tax Return has not been submitted no claim for a self employment grant can be made, HMRC will contact eligible taxpayers in June (update - they manage to open the scheme early! Claims can be made from 13th May). There is an extension to get this up to date and secure eligibility.

Statutory Sick Pay (SSP) will be funded from day one up to two weeks for illness in connection with the coronavirus.

If you are eligible for small business rates relief on your business premises (rateable value less than £15,000) a grant of £10,000 will be made. If you are in the retail, hospitality or leisure sectors and have a rateable value of between £15,000 and £51,000, this grant will be £25,000. The local authority will contact you directly if you are eligible in April. N.B. for businesses based in York, we are aware that the Council has now received its funding and has written to eligible businesses. You can instigate the application for your grant at https://www.york.gov.uk/news/article/123/council-ready-to-process-40m-coronavirus-support-grants-to-local-businesses

York Council are offering grants to micro businesses who are not eligible for any of the other government grants available. The grant is worth up to £1,000. You need to be able to demonstrate a reduction in income and explain what you will spend the grant on. https://www.york.gov.uk/COVIDMicroGrant

Additional grant funding is to be made available for businesses not able to benefit from the original council grants. Details can be found here: https://www.gov.uk/government/news/top-up-to-local-business-grant-funds-scheme

Coronavirus Job Retention Scheme will fund 80% of an employee's employment costs (up to a maximum of £2,500 per month) for employees for which employers can no longer provide work to avoid the need to make the employee redundant. The employee must remain on the payroll and be paid as normal with a claim for grant funding made separately (the portal to make an application is not yet available). The employee cannot undertake any work for the business during the furlough period. The portal opened on 20th April to make grant claims with payments expected six working days later. The scheme has been extended through to October but we understand revisions will be made - we await details on this.

The Job Retention Scheme can be applied to Directors in relation to their salary payments only. As noted above, a director who is furloughed must do no work for the company that is revenue/fee generating. Statutory administration duties will be allowed. Extreme care must be taken if a Director is placed on furlough, grants will be audited we are told.

VAT payments due between 20th March and 30th June can be deferred up to the end of the tax year, if you pay by direct debit you must cancel this and ensure you remember to set it back up again.

July 2020 Self Assessment Tax payments can be deferred until January 2021.

You can apply for a three month mortgage holiday - other types of debt are also being considered.

Bounce Back Loans available for amounts between £2,000 and £50,000. No personal guarantees required, no fees, interest or loan repayments for the first 12 months. Repayment term up to 6 years.

Business Interruption loans are being made available. Please contact your bank or speak to us for further details.

Time to pay arrangements can be put in place on most business taxes.

Our revised working hours

Tue, 24 Mar 2020 15:09:23 GMT

Following the Prime Minister's announcement of a national emergency and ordering all of us to stay at home, please read below to find out what we are doing.

From 8.30 pm on Monday 23rd March we were all instructed to stay at home to help beat Covid-19. Of course as a nation we must pull together and do what we can by making only essential journeys and staying inside in line with the guidance we have been given.

As a business we need to be there to support our clients - fellow businesses - through these turbulent times. Compliance obligations need to be met alongside a need to discuss options as things develop over the coming weeks.

Our team have been moved to work from home and I would ask that if you need to contact any particular member of the team you email them and request a call back when it is convenient for you. The office will be open for a few hours every morning where we can accept post, take calls and accept records. If you need to drop records in to the office, if at all possible, please ring ahead to ensure that someone will be here and how to safely leave the records with us whilst making minimal contact and maintaining the recommended social distance.

If you call and the office is not manned at that point, please leave a message and your call will be returned. Alternatively please email a member of the team and they can call you back. We are very much still working for you, please be patient with us if we cannot get immediate responses to you, we really are all in this together.

Stay safe and stay at home where possible.

Coronavirus (Covid-19)

Thu, 19 Mar 2020 16:58:32 GMT

We are all living through worrying times, whether you are worried about your own health, your vulnerable relatives or the survival of your business, everyone is affected by this invisible enemy.

Like everyone we are monitoring the situation with Covid-19 closely. Working with businesses from all sectors we understand the devastating impact some of the announced measures will have on people and their livelihoods. As always we are here to support our clients and offer advice and support as it is needed – please do not be afraid to pick up the phone. We are very much all in this together and want to help where we can.

Further information and clarification on support measures are being released constantly and we are of course keeping as up to date as we can - we want to help you get through this. Ultimately our business depends upon your business, no one is immune.

We have taken all necessary steps to protect and support our team which of course includes increasing our office hygiene further and practicing social distancing as advised by our Government. Our office will remain open during office hours as long as it possibly can. We are no longer taking face to face meetings to protect both our team and our clients, but of course we can still ‘meet’ in many other ways as convenient to you. At times members of our team may work from home, we will endeavor to ensure that this does not impact the service that we provide to you. If our office hours do need to change then details will be posted here.

You are still welcome to come to the office to drop in books and records, please do not be offended if we do not shake hands and keep the recommended distance, this is to protect you and our team so we can continue to offer a normal service for as long as possible. If you have any concerns regarding the delivery of books, records or signed documents then please do speak to us, we are happy to put alternative arrangements in place wherever possible.

If you are have questions with regard to paying your employees, paying your suppliers or meeting your financial liabilities - speak to us, even if that supplier you are struggling to pay is us. Wherever it is possible to do so we will try and work with you.

At times like this it is important that we all take care of our mental health too. Particularly when you are self employed or run your own small business you can feel isolated and lonely - even before you are instructed to self isolate. Please feel free to call us, sometimes a sympathetic ear and someone to discuss the difficult decisions with can make you feel better.

Ultimately we hope that you and your loved ones stay safe and healthy.

Bold Business Bites Podcast with Ros Jones

mary@sunleyandco.co.uk (Mary Beavis) — Tue, 02 Apr 2019 08:16:40 GMT

I was honoured to be interviewed by Ros Jones Business Coach back in January for her podcast series - Bold Business Bites. This was published on Thursday 28th March and I would be delighted if you had a listen - not just to me but to the many great guests Ros has interviewed over the series.

It has been great to listen to the experiences of many local business people and understand the challenges that they have faced.

From my perspective, although we set out with no agenda, I was delighted to be able to talk about my amazing team and how we all work together to make sure we deliver the best service possible to our clients.

The podcast can be found on all the usual podcast apps or by following this link .

You can contact Ros at https://actioncoach.co.uk/coaches/ros-jones/

Setting Goals

mary@sunleyandco.co.uk (Mary Beavis) — Thu, 04 Oct 2018 09:09:15 GMT

Why do we do this and what do we want?

Do you remember why you set up your business in the first place? If you are just considering starting to trade, do you really understand why you are doing it?

I've always believed that everyone must remember that your business is set up to serve you personally - not the other way around. No matter how much passion you have for your work and how much you love the people you work for, the business has to support you and your family unit, nothing is more important to you. By that I don't simply mean financially but also in terms of freedom, flexibility and simply the ability to enjoy life.

Many businesses have a plan when they start up (I also see many that have none whatsoever) but once you are up and running how often do you review these goals? How often do you question whether your business is providing everything that you thought it should?

None of us would set off on a car journey without some idea where we are headed. Occasionally we make take a wrong turn or a traffic jam might cause a diversion or delay, but ultimately we end up where we were aiming to get to. Business is no different. If we don't have an idea of what we want to achieve then how do we know that the decisions that we are making along the way are helping us to achieve what we want? That may simply be earning X amount per year until you are ready to retire or building a brand that you can sell at some point in the future.

Take some time and really think, is your business giving you everything that you wanted from it? Do you know what your end goal is? Is your business helping you achieve your personal life goals or hindering it because you never have enough time or money?

I ask clients what is the 1 year plan / 5 year plan / end goal? Your accountancy and tax planning can help support you in reaching your goal - we are not simply a compliance tool that ensures all the ticks are in the right boxes. I work alongside many great financial advisers and planners as well as business coaches, all of which can help you get where you want to be. But first you need to have some idea of your destination - we can all help you plan the journey. Enjoy!

Class 2 National Insurance - What is going on?

mary@sunleyandco.co.uk (Mary Beavis) — Fri, 07 Sep 2018 10:22:50 GMT

First it is scrapped, then delayed, now not going anywhere!

So what is happening and what even is Class 2 National Insurance?

Class 2 National Insurance is paid by self employed people and contributes towards state pension years and certain other state benefit entitlements. The current rate is £2.95 per week and is the cheapest form of national insurance available. Self employed individuals are subject to Class 2 and Class 4. Class 4 contributions are paid only when profits exceed £8,424 and are at a rate of 9% on earnings up to £46,350 (2018/19) and 2% at earnings above that - they are in fact tax by another name! Class 4 contributions have no contributory rights towards state benefits.

Class 2 contributions are only payable when earnings exceed £6,205 but can be paid voluntarily for those earning below this meaning that they are still able to get a state pension credit for the very reasonable sum of £153.40 per year. For non-self employed with no earnings the only option is to pay class 3 contributions at a rate of £14.65 per week (£761.80 per year) to get the same benefit - you can see that Class 2 contributions appear to be a bargain!

It was initially proposed that Class 2 contributions were withdrawn from April 2018 and instead Class 4 contributions would be amended to be contributory. This was delayed until April 2019 as the details as to how this would work had not been agreed. The main concern was that for those earning below £8,424 the only option to make national insurance contributions would have been to pay the much more expensive Class 3 - when the individual is clearly a low earner this would have been an additional burden and left more people not making any contributions at all, receiving lower state pensions as a result.

Scrapping the withdrawal and reverting back to the tried and tested system can therefore be seen as a positive for the lower earners who relied on this for their state pension.

I have read reports in the press saying that the self employed are being hit again as they are now not getting the benefit of not having to pay these contributions i.e. they will be £153.40 per year worse off than they expected to be. What these reports do not say is that there was an inevitability that if Class 2 was to be withdrawn Class 4 would be increased to compensate. In addition is it not better that a self employed person pay voluntary Class 2 contributions of £153.40 rather than voluntary Class 3 contributions of £761.80?

I am sure this will be up for debate again but for the time being let's just stay as we are!

To VAT or not to VAT

mary@sunleyandco.co.uk (Mary Beavis) — Fri, 17 Aug 2018 15:50:37 GMT

Should you be VAT registered?

So your turnover hasn't yet hit the VAT registration threshold of £85,000 but you understand you can claim the VAT back that you pay on expenses - should you therefore be VAT registered?

To help make up your mind consider the following points:

Are you likely to exceed the threshold soon? If you are perhaps it is better to register now and avoid missing the point at which you are obliged to register - and the penalties that can bring with it!
Who are your customers? If they are VAT registered businesses who won't care whether you are VAT registered or not (as they will claim it back) then it might be worth considering. However if you act for domestic customers and small businesses who can't claim VAT back then your price will appear to go up by 20% - would they move to a competitor who is now 20% cheaper?
Is the service you are providing or product you are selling a standard rated supply? If you provide exempt services or sell exempt products you can't register anyway - or if it is a mix of standard rated and exempt supplies, your claim for VAT on your expenses is likely to be restricted.
Being VAT registered means that you will have to complete quarterly VAT returns - do you want the extra administration that that this will entail - how good are your books and records? You don't want to be giving H M Revenue & Customs the opportunity to raise more penalties!

Once your turnover in ANY twelve month period exceeds £85,000 you must register for VAT so do keep a careful check on your income and take advice in good time.

Corporation Tax Payments - no statements?

Wed, 08 Aug 2018 00:00:00 GMT

As all corporation tax must now be paid electronically we understand that HMRC have decided not to send statements to remind you when your tax is due – this has caught many people out and HMRC are very quick to send their debt collection letters!

Once you are advised of your liability make sure you write it in the diary, on the calendar or in your phone so you don’t forget to send the payment!

Making Tax Digital for VAT

Wed, 08 Aug 2018 00:00:00 GMT

Are you VAT registered? Does your turnover exceed £85,000? Do you know that with effect from April 2019 for the first VAT period commencing after 1st April your business records must be maintained in software and the VAT Return prepared and submitted directly from that software?

HHMRC have been very slow to provide businesses with any notification that this major change will shortly be upon them. All our clients have been made aware of this continually over the last two years since it was first announced – but what about the unrepresented taxpayer?

If you meet the criteria you must start to consider your options now. You don’t want to be swapping from one system to another mid year so you need to make sure your transition date is planned, you know which software you want to use and you know how to use it

HMRC have said that there will be a ‘soft landing’ period in terms of penalties for the first year so please don’t panic. However they have said that there will be no such ‘soft landing’ for those who make no effort and hope it will go away – so make sure that you do something!

Any of the team would be happy to talk through what you need to do and by when so feel free to give us a call.

Digital Accounting

Wed, 08 Aug 2018 00:00:00 GMT

From April 2019, VAT registered businesses with turnover above the VAT threshold (currently £85,000) will need to keep Digital records that allows them to prepare and submit their VAT Return digitally. Submission using the Government Gateway account will no longer be allowed.

From a date yet to be agreed, it is proposed that HMRC will also require businesses to update HMRC quarterly in respect of their accounting data for Corporation Tax, Income Tax and National Insurance.

Eventually this will replace the requirement to complete Tax Returns as all information will be held within individual and business digital tax accounts.

For many this is a significant change and means that you may need to move from existing manual or spreadsheet record keeping to a digital accounting package.

The good news is that we are able to help you with this and have designed tailored packages to support you through these changes.

Digital accounting software has many advantages over traditional bookkeeping. Most digital accounting packages are now online or cloud based

· You can see a clear picture of your current financial position and performance in real time

· Being cloud based means you no longer have to install software, back up your data or install updates

· Your records are available to you across all devices that are internet enabled

· No upfront set up costs, online packages are via monthly subscription

· Your bank transactions can feed daily into your software

· You can send invoices to clients electronically and keep track of who owes you money

· You can take pictures of receipts and store these within the software

· Share information with us more easily allowing us to provide real time advice and information

The good news is that we are able to help you with these changes and have designed tailored packages to support you through your first year and beyond. Please get in touch with any of the team to discuss what digital accounting means for you.

July 2018 Payments on Account

Mon, 16 Jul 2018 00:00:00 GMT

The payment date of 31st July is almost upon us – it comes round fast I hear you say!

Make sure that you set up your payment in a good time to avoid any interest being added.

Remember that a payment on account is only an estimate of the tax due and therefore if you have legitimate grounds to think that your tax liability will be less, the payment may be able to be reduced. Make your application before 31stJuly to avoid being chased – if you are a client of ours please get I touch and we can discuss with you your options.