fbpx

The 2021 Budget – At a glance

Here is a 10 minute summary of the Chancellor, Rishi Sunak’s 2021 Budget :

In the Chancellor’s budget today, Rishi Sunak addressed the country, with supportive but realistic measures, to help steer the economy onto the road to recovery.
He went on to say, the amount of financial support needed, being higher in the first and second world wars.

He highlighted a 3 step process, to guide the economy out of the pandemic:

  1. To protect our economy and do what it takes
  2. To fix our public finances, on our way to recovery
  3. To build a robust economy, for the future

Coronavirus Job Retention (Furlough) Scheme extended to 30 September 2021 

If your employees were employed on 30 October 2020, you can claim up to 80% of your employees gross wages, for hours not worked, until July 2021.

For August 2021, employers will need to contribute 10% of the employee’s gross wages.
For September 2021, employers will need to contribute 20$ of the employee’s gross wages.
Employers can make the claims as per usual via your government gateway account.

Self Employment Income Support Grant extended to September 2021

Support for the self employed has been extended also to fall in line with the furlough support measures, for the employed.

A fourth grant will be available for the self-employed, based on 80% of the average 3 month profits, covering February to April 2021. Capped at £7,500, paid in one single payment. Covering
Available from mid April 2021 to 31 May 2021

The fifth grant available from July, will be based on 80% of the average 3 month profits, for those with a turnover reduction of more than 30%.

30% of 3 months average profit, for those with a turnover reduction of less than 30%, capped at £2,850. Covering May to September 2021 and available from late July 2021.

Newly self-employed are now eligible for SEISS forth and fifth grant

If you have just become self employed for the 2019/20 and filed a tax return by 28 February 2021, you are eligible for the fourth and fifth SEISS grant, as mentioned above.
So more people will be eligible for support that slipped through the cracks.

Coronavirus Job Retention (Furlough) Scheme extended to 30 September 2021 

Apprenticeship incentive payments double to £3,000

The cash incentive payment to employers, for hiring an apprentice, has been doubled.Previously if employers took on apprentices aged:

  • 16 to 24 years old, employers would receive £2,000
  • Aged over 24 years, employers would get £1,500

The scheme has been extended to 30 September 2021, and employers will receive £3,000 per hire, regardless of age.

The Restart Grant

The aim of the Restart Grant is to help businesses reopen and get going again.

This new cash grant will see non essential retail businesses, closed due the lockdown, receive up to £6,000 per premises.

Those businesses in the leisure, hospitality and tourism sectors, including personal care and gyms, who will open later, due to restrictions will be able to claim grants, up to £18,000 per premises.

The New Recovery Loan

Even with the new restart scheme some businesses will also need loans to see them through as the bounce back loan, and CBILS come to an end.
The New Recovery Loan, means any businesses of any size can apply for loan from £25,000 up to £10 million, through to the end of this year and the government will provide a guarantee to lenders on 80% of the loan amount.

Apprenticeship incentive payments double to £3,000 for employers

Business rates holiday

100% business rates relief extension, for the first three months of the financial year, to 30 June 2021.
With the remaining nine months, the business rates will be discounted to 2/3 of the amount due, to April 2022.

VAT – 5% reduced rate for hospitality, holiday accommodation and attractions

A 5% reduced VAT rate will be extended for 6 months to 30 September 2021.

From October 2021, there will be an interim VAT rate of 12.5% for another 6 months to 31 March 2022.
From 1 April 2022, the rate will only then return to 20%, for standard rated taxable supplies.
The VAT threshold at £85,000 for compulsory registration remains unchanged.

Stamp Duty Land Tax (SDLT) holiday

The 0% SDLT rate, for property purchases up to £500,000 will be extended from 31 March 2021 to 30 June 2021.
Please note 3% SDLT rate will be added, for additional properties.

There will be a transition phase, from 1 July 2021 to 30 September 2021. Where 0% SDLT rate will apply, for property purchases up to £250,000. 
Then, from 1 October 2021 the 0% SDLT rate will return, for property purchases up to £125,000.

Personal tax thresholds

The Income tax personal allowance, will increase to £12,570 as of April 2022 and will stay at that level until April 2026.
The higher rate threshold, 40% Income tax rate, will increase to £50,270 as of April 2022 and will be frozen until April 2026 
National Insurance rates remain the same.
The Inheritance tax threshold, the pensions lifetime allowance the annual exempt amount for capital gains tax remains unchanged.

Corporation Tax

In an effort to plug the gap in the public finances, the government is looking to business for help 
Chancellor Rishi Sunak said it was “fair and necessary” for business to contribute to the economic recovery.
There will be an increase in corporation tax from the current 19% to 25%, from April 2023.

Corporation Tax – New Small Profits Rate

For businesses with profits of less than £50,000, the current rate of 19% will remain unchanged.

Corporation Tax – Margin relief

For companies with profits between £50,000 to £250,000 will pay tax at 25% but will be able to claim marginal relief.
Profits above £250,000 will be taxed at the new full rate of 25%, from April 2023.

Temporary extension for carrying back losses

Unused tax losses, up to a maximum of £2,000,000 can be carried back 3 years and offset against profits. Claiming additional tax refund up to £760,000.

For Sole Traders:
The losses must have been made in the 2020/21 and 2021/22 tax years to carry back

For Companies:
The maximum amount of £2,000,000 loss which can be carried, applies when the unused loss has been carried back to the previous tax year first.Losses must have been made in accounting periods between, 1 April 2020 to 31 March 2021 and 1 April 2021 and 31 March 2022.

The Super Deduction and 50% first year allowances

Businesses investing in qualifying plant and machinery from 1 April 2021 to 31 March 2023, which are main rate pool assets, will qualify for a 130% Super Deduction

Investments in special rate pool assets, will qualify for a 50% first time allowance.

Sunak said: “Under the existing rule, a construction firm buying £10m of new equipment could reduce their taxable income in the year they invest by just £2.6m. With the super deduction they can now reduce it by £13m. We’ve never tried this before in our country, the [Office for Budget Responsibility] have said it will boost business investment by 10 per cent, around £20bn more per year.”

Businesses investing in qualifying plant and machinery from 1 April 2021 to 31 March 2023, which are main rate pool assets, will qualify for a 130% Super Deduction

Help to grow scheme

The government is offering training and support for SME’s for MBA style management and digital skills training, in an effort to help close the gap with rival nations.
To register your interest:
https://helptogrow.campaign.gov.uk/

If you require any additional information regarding any of the above, please contact us at enquiries@pennyhills.com or call us on 0208 064 0969.

Please follow and share

Processing…
Success! You're on the list.

The UPDATED Self Employed Income Support Scheme (SEISS)

Here is a 1 minute summary of the Chancellor, Rishi Sunak’s Updated SEISS :

Today, the Chancellor, acknowledged the need to increase the support UK businesses and compliment the package for The New Job Support Scheme to help self employed business owners, across the UK.
Especially, those self employed businesses, who are experiencing a drop in demand as a direct result of COVID-19.
The news has been warmly welcomed, with repect to the difficult winter months ahead, by adding extra measures to the support package, announced last month.

The government is providing extra support by:
– Providing two taxable SEISS grants – one in November 2020 and another in February 2021.
– Available to anyone who was eligible for the previous SEISS grants and meet the current eligibility criteria.
– SEISS grant have been increased from 20% to 40% of average trading profits.
– The capped maximum grant will increase from £1,875 to £3,750.
– Payable in two lump sum installments – cover 3 months:
– The first grant will cover 1 November 2020 to 31 January 2021.
Based on 40% of three month’s average trading profits, capped at £3,750.
– The second grant will cover 1 February 2021 to 30 April 2021.
The second grant is based on a government review and the amount will be set
in closer to the time.

SEISS grant have been increased from 20% to 40% of average trading profits.

Who is eligible?

Anyone who was eligible for the previous SEISS grants that were made.
This was any self employed person who had submitted a self assessment income tax return by 31 January 2020.

What is covered?

Two SEISS grants.
The first grant covers the period, November 2020 to January 2021, covering 40% og three month’s average trading profits, capped at £3,750.

The second grant will cover February 2021 to April 2021.
The level of funding is yet to be announced. The level will be set by the Chancellor closer to the time.

Employees must bThe first grant will cover 1 November 2020 to 31 January 2021.Based on 40% of three month’s average trading profits, capped at £3,750.

How to claim?

HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.

If you require any additional information regarding The New Job Support Scheme, please contact us at enquiries@pennyhills.com or call us on 0208 064 0969.

Please follow and share

Processing…
Success! You're on the list.

The New UPDATED Job Support Scheme

With the furlough scheme coming to an end on 31 October 2020, the Chancellor Rishi Sunak presented, its replacement: The New Job Support Scheme.
Today, the government has acknowledged the need to increase it’s support to help businesses and employees, across the UK, to survive local lockdowns. The news has been welcomed, with repect to the difficult winter months ahead, by adding extra support measures to The New Job Support Scheme, announced last month.

The government is providing extra support by:
– Increasing their contribution to wage costs.
– Reducing employer contributions from 33% to 5%.
– Reducing the number of eligible employee working hours to 20%.
– Expanding business grants to those in high alert level areas.
– Doubling grants for the self employed, to 40%.

Here is a 3 minute summary of the Chancellor, Rishi Sunak’s Updated New Job Support Scheme:

The Job Support Scheme (JSS)

Coming into effect on 1 November 2020 until April 2021.
Employers will only contribution 5% of the employee unworked hours.
To be eligible for the scheme, employees only need to work 20% of their contracted normal hours. So someone can now works for 1 day a week and still be eligible for the scheme. (If working a 5 day week)

So how does the new scheme compare?

The Furlough Scheme
The government contributes 60%.
The employer contributes 20%
The employee loses 20% of their wages.

The Old Job Support Scheme (Announced in September 2020)
The employee gets paid for 33% from the employer.
The government contributes 22%.
The employer contributes 22%.
The employee loses 22% of their wages..

The New Job Support Scheme (For Tier 3 lockdown)
The government contributes 67%
The employer contributes 0%.
The employee loses 33%.

The New Job Support Scheme (For all other businesses facing restrictions)
The employee gets paid for 20% from the employer.
The Government contributes 49%.
The employer contributes 4%.
The employee loses 27% of their wages.

The New Job Support Scheme (For all other businesses facing restrictions)The employee gets paid for 20% from the employer.The Government contributes 49%.The employer contributes 4%.The employee loses 27% of their wages.

Who is eligible?

EMPLOYERS
All employers with a UK bank account and UK PAYE schemes can claim the grant.
Neither the employer nor the employee needs to have previously used the
Coronavirus Job Retention Scheme.

EMPLOYEES
Employees must be on an employer’s PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020

In order to support viable jobs, for the first three months of the scheme the
employee must work at least 20% of their usual hours. After 3 months, the
Government will consider whether to increase this minimum hours threshold.

What is covered?

For every hour not worked by the employee, both the Government and employer
will pay a third each of the usual hourly wage for that employee. The Government
contribution will be capped at £1,541.75 a month.

Grant payments will be made in arrears, reimbursing the employer for the
Government’s contribution. The grant will not cover Class 1 employer NICs or
pension contributions, although these contributions will remain payable by the
employer.

Employers must pay employees their contracted wages for hours worked, and the
Government and employer contributions for hours not worked.

Employees must be on an employer’s PAYE payroll on or before 23 September 2020, in order to claim.

What does reduced hours actually mean?

The employee must be working at least 20% of their usual hours..
For the time worked, employees must be paid their normal contracted wage.
For time not worked, the employee will be paid up to two-thirds of their usual
wage,
Employees cannot be made redundant or put on notice of redundancy during the
period within which their employer is claiming the grant for that employee.

How to claim?

The scheme will be open from 1 November 2020 to the end of April 2021.
Employers will be able to make a claim online through Gov.uk from 8 December 2020. They will be paid on a monthly basis

If you require any additional information regarding The New Job Support Scheme, please contact us at enquiries@pennyhills.com or call us on 0208 064 0969.

Please follow and share

Processing…
Success! You're on the list.

The New Job Support Scheme

With the virus spreading and more local lockdowns, business viability is adversely affected. The Chancellor, Rishi Sunak added to the measures taken in the 2020 Budget , payment holiday and The Chancellors Summer Statement in an effort to provide more support to local businesses.

Here is a 2 minute summary of the Chancellor, Rishi Sunak’s New Job Support Scheme:

The new job support scheme – what is it?

The scheme has been set up to protect employees currently in work, by supporting employers who are facing depressing demand during the winter months, to pay their wages. It replaces the Coronavirus Job Retention Scheme (CJRS), from November 2020 to April 2021.

The company will continue to pay it’s employees for the time worked, but pay for the hours worked will be split between the Government and the employer, through wage support.

The Government will pay a third of hours not worked up to a cap, with the
employer also contributing a third. This will ensure employees earn a minimum of
77% of their normal wages, where the Government contribution has not been
capped.

The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. So emplyees earn a minimum of 77% of their normal wages.

The scheme will open on 1 November 2020 and run for 6 months, until April 2021

Employers on the Job Support Scheme canl also claim the Job
Retention Bonus
, providing they meet the eligibility criteria.

Who is eligible?

EMPLOYERS
All employers with a UK bank account and UK PAYE schemes can claim the grant.
Neither the employer nor the employee needs to have previously used the
Coronavirus Job Retention Scheme.

EMPLOYEES
Employees must be on an employer’s PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020

In order to support viable jobs, for the first three months of the scheme the
employee must work at least 33% of their usual hours. After 3 months, the
Government will consider whether to increase this minimum hours threshold.

What is covered?

For every hour not worked by the employee, both the Government and employer
will pay a third each of the usual hourly wage for that employee. The Government
contribution will be capped at £697.92 a month.

Grant payments will be made in arrears, reimbursing the employer for the
Government’s contribution. The grant will not cover Class 1 employer NICs or
pension contributions, although these contributions will remain payable by the
employer.

Employers must pay employees their contracted wages for hours worked, and the
Government and employer contributions for hours not worked.

Employees must be on an employer’s PAYE payroll on or before 23 September 2020, in order to claim.

What does reduced hours actually mean?

The employee must be working at least 33% of their usual hours..
For the time worked, employees must be paid their normal contracted wage.
For time not worked, the employee will be paid up to two-thirds of their usual
wage,
Employees cannot be made redundant or put on notice of redundancy during the
period within which their employer is claiming the grant for that employee.

How to claim?

The scheme will be open from 1 November 2020 to the end of April 2021.
Employers will be able to make a claim online through Gov.uk from December 2020. They will be paid on a monthly basis

Example

• Anita normally works 5 days a week and earns £350 a week. Her company is
suffering reduced sales due to coronavirus. Rather than making Anita redundant, the
company puts Anita on the Job Support Scheme, working 2 days a week (40% of her
usual hours).
• Her employer pays Anita £140 for the days she works.
• And for the time she is not working (3 days or 60%, worth £210), she will also earn
2/3, or £140, bringing her total earnings to £280, 80% of her normal wage.
• The Government will give a grant worth £70 (1/3 of hours not worked, equivalent
to 20% of her normal wages) to Anita’s employer to support them in keeping Anita’s
job.

If you require any additional information regarding The New Job Support Scheme, please contact us at enquiries@pennyhills.com or call us on 0208 064 0969.

Please follow and share

Processing…
Success! You're on the list.

The Chancellor’s Summer Statement – 8 July 2020

Further economic stimulus was announced by the Chancellor, Rishi Sunak today, to the 2020 Budget and payment holiday measures.

Here is a 2 minute summary of the Chancellor, Rishi Sunak’s Summer Statement:

The job retention scheme

£1,000 payment to employers for bringing back furloughed employees from Nov 2020 to Jan 2021 paying a minimum of £520/month.

£1,000 payment to employers for bringing back furloughed employees from Nov 2020 to Jan 2021 paying a minimum of £520/month.

Kickstarter scheme

From next month employers who employ 16-24 year olds, the government will pay the wages up to 6 months. Up to a max of £6,500.

Trainees

The government will pay employers £1,000 per trainee they take on.

Apprentices

The government will pay employers who take on apprentices within the next 6 months £2,000 per apprentice
Plus a bonus of £1,500 if the apprentice is 25+ years of age.

Green homes grant

Homeowners will be able to apply for grants to make their homes more energy efficient. £5,000 per household.

Stamp Duty

Cut in stamp duty of 0% from homes under £500,000
For transactions up to 31 March 2021.

VAT

Cut in VAT for the hospitality sector:
– Food
– Accomodation
– Attractions
From 20% to 5% effective now until 12 January 2021.

Cut in VAT for the hospitality sector : From 20% to 5% effective now until 12 January 2021.

Eat out to help out scheme

For the month of August only.
For eating out between Monday to Wednesday food will be 50% off, up to a value of £10/ head rebate from the government.

Consumers, which includes adults and children. You will need to register through a website to make a claim and the government will refund you directly into your bank account.

For the month of August only.For eating out between Monday to Wednesday food will be 50% off, up to a value of £10/ head rebate from the government.

Please follow and share

Processing…
Success! You're on the list.

Payment Holidays

The Financial Conduct Authority (FCA) introduces a temporary freeze on Credit Card, Loan and Motor Finance repayments?

Due to the adverse affects of Covid-19 on household finances, as of 9 April 2020, the FCA has announced that there will be a temporary freeze on loan, credit card and motor finance payments, for those experiencing financial dificulties.

The FCA has stressed that those who can afford to pay and keep up with repayments, should continue to do so.

Credit Card Repayments

Credit card providers will be able to offer a three month payment holiday, to consumers negatively affected by the Coronavirus.
The payment freeze will not affect the consumer credit file.

Consumers will need to contact their respective credit card providers directly.
Information regarding applying, will be on the providers websites by Tuesday 14 April 2020.

Overdrafts

Customers who already have an arranged overdraft on their main personal current account, will be able to have 0% interest on overdrawn balances up to £500, for up to a three month period.

Loans repayments

Consumers who have personal and business loans will be able to apply for a payment holiday, with a freeze on repayments, up to three months.

Similarly consumers will need to contact their banks and lenders directly, information should be available on their websites and social media posts.
The payment holiday will not adversely affect consumers’ credit file.

The payment holiday will not adversely affect consumers’ credit file.

Mortgage repayments

Homeowners and buy-to-let landords are able to apply for a mortgage payment holiday, which will need to be applied for directly with the lender.
It is important to bear in mind, that if you take a three month payment holiday, the total amount outstanding will be based on your loan term, minus the three months.
Which means that your monthly payments will increase.

The payment holiday will not adversely affect consumers’ credit file.

When applying for a payment holiday over the phone, it will be worth noting down the representatives name and the time of the call. To ensure, in the event of the lender reporting a missed payment, during the payment holiday. The consumer will have enough information to retrieve details about the call, to prove the holiday had been sanctioned.
This may become problematic when trying to remortgage, if you have a blemish on your credit file.

Motor Finance Repayments

To compliment the other measures the FCA has announced, consumers who are facing financial dificulties, are now able to apply for a three month freeze on motor finance and lease payments.

The payment holiday will not adversely affect consumers’ credit file.

Pennyhills®

Pennyhills® are london bases accountants, specialising in accounting and tax services for entreprenuers, with their businesses across the UK.

Please follow and share


Processing…
Success! You're on the list.

How to furlough employees

What is the Job Retention Scheme?

It is a temporary support measure to help all UK employers, pay their employees whilst their business is closed, directly as a result of the Coronavirus.
Such as Dentalpreneurs working in dental practices, for at least 3 months, starting from 1 March 2020 to 31 May 2020.

How much can I claim?

Employers can claim 80% of the wages costs up to a maximum of £2,500 per employee per month.
Including Employers National Insurance contributions and the minimum auto enrolment employer pension contributions.

Who is eligible?

All UK Employers who started their PAYE scheme on or before 28 February 2020 can access the scheme. Employers must have a UK Bank Account.

Furloughed employees

To claim the Job Retention Scheme, employers must furlough their respective employees.
A furlough employee is one that is on temporarily leave of absence.

They can be:
Full time
Part time
Employees on agency contracts
Employees on zero hour contracts
All of which must have been on the payroll as at 28 February 2020.

Can furloughed employees still work?

The furloughed employee cannot work for that organisation.

Is the grant tax free?

The grant will still be subject to tax and payroll deductions.

What do employers need to do?

Employers need to write to employees who will be furloughed, communicating the process moving forwards.

What if your employee is on unpaid leave?

Only employees after 28 February on unpaid leave can be furloughed. Not before.

What if your employee is on Statutory Sick Pay?

Employees who are self isolating and/ or are on sick leave, will get Statutory Sick Pay first.
They can be furloughed thereafter.

The grant you will get from HMRC is the lower of:80% of your employee’s gross monthly wages and £2,500 per month, not including any bonuses or commission.The 80% calculation is based on the employees wages as at 28 February 2020.

What if your employee has more than one job?

Employees must be furloughed for each employer they work for.

What if your employee is on Maternity leave or Paternity leave?

Employees who qualify for Statutory Maternity Pay, will be eligible for 90% of their average weekly earnings for the first 6 weeks, followed by 33 weeks of pay paid at 90% of their average weekly earnings or the lower of statutory flat rate,  currently £148.68 a week, rising to £151.20 a week from April 2020.

How to work out what you can claim

The grant you will get from HMRC is the lower of:
80% of your employee’s gross monthly wages and £2,500 per month, not including any bonuses or commission.
The 80% calculation is based on the employees wages as at 28 February 2020.

What if my employee’s wages vary?

If the employee has been employed for greater than 12 months.
You can claim the higher of:
1) Wages on average for the 2019/20 tax year
2) Wages on the same month in the prior year

If your employee was employed for less than a year.
You can claim 80% of the average pay over the period employed.

What will I need to make a claim?

  1. your ePAYE reference number
  2. the number of employees being furloughed
  3. the claim period (start and end date)
  4. amount claimed (per the minimum length of furloughing of 3 weeks)
  5. your bank account number and sort code
  6. your contact name
  7. your phone number

How do I make a claim?

You will be making a claim outside of the PAYE system. The new online portal will be the system that is used to make your claim. Which will be available at the end of April.

You can submit one claim every 3 weeks, which is the minimum length an employee can be furloughed for. Claims can also be backdated to 1 March 2020.

What happens when you have claimed?

HMRC will pay the grant to your nominated UK bank account via BACS.You need to make the claim based on your payroll amount per employee.
You must pay the employee all of grant received and not deduct any commission or fees.

Income tax and National Insurance

Furloughed employees 80% grant of their wages will subject to Income tax and the employer will be responsible for  Employer National Insurance contributions and auto enrolment contributions. Which will be received from the Grant’s additional payment.           

The Tax treatment of The Coronavirus Job Retention Scheme

The payments received must be included as income, in the businesses calculation of taxable profits and deduct employment costs in the normal way.

Please follow and share


Processing…
Success! You're on the list.

The 2020 Budget – Business Tax

Deferral of tax payments

Business owners will be able to defer tax payment over an agreed period of time from today. There will be a dedicated helpline with 2,000 staff standing ready to help, due to the Coronavirus outbreak.

Coronavirus Business Interruption Loan Scheme

This loan scheme is set up to help small business owners with any cashflow isssues they may be facing. Offering a generous guarantee on those loans, up to £5m, covering up to 80% of losses with no fees to the bank.

Check you business rateable value here:
https://www.gov.uk/correct-your-business-rates

Statutory Sick Pay (SSP) for Business

For businesses with less than 250 employees, they can claim a full refund from the government, for the cost of providing SSP to employees off of work, due to Coronavirus, for 14 days.

Employment Allowance

Will increase from £3,000 to £4,000, from 6 April 2020.

Cash Grants

For the business who claim Small Buiness Rates Relief (SBRR) a £10,000 cash grant will be available and £25,000 cash grant for businesses in the hospitality and leisure sectors, like pubs.

Corporation tax

Will remain at the rate of 19% from 6 April 2020.

Research and Development

The R&D expenditure credit will increase from 12% to 13%.

The Job Retention Scheme

Taxable grants will cover 80% of your employee wage bill, up to a maximum of £2,500 per month per employee.

VAT Holiday

Business will be able to defer VAT liability from June 2020 until January 2021.

Self Assessment Holiday

The July 2020 POA will be deferred until January 2021.

VAT on digital e-books, journals, newspapers

Will be 0% from 1 December 2020, so they are in line with paper formats, in time for Christmas.

Business rates Holiday

Business rates will be scrapped with a retail rateable value of less than £51,000 for 12 months. Including businesses in the retail, hospitality and leisure industries.

You can check your rateable value here:

https://www.gov.uk/correct-your-business-rates

About Pennyhills®

London based Accountants specialising in accounting and tax solutions for Entrepreneurs, with their businesses, across the UK

We are a Silver-status partner with Xero and our practice regulated by the Association of Chartered Certified Accountants (ACCA).

We are authorised by ACCA to carry out a range of investment activities.

Please follow and share


Processing…
Success! You're on the list.

The 2020 Budget – Personal Tax

Income tax and National Insurance

The personal allowance is £12,500.

With the higher rate of 40% becoming effective on income above £50,000.

The tax threshold for National Insurance Contributions will rise from £8,632 to £9,500.

Non-UK Residents
Will see new stamp duty surcharge at a rate of 2%, effective from April 2021

Statutory Sick Pay (SSP)

Self employed workers will be able to claim SSP from day one and will have access to the Contributory Employment and Support Allowance.

Deferral of tax payments

Self-employed business owners will be able to defer tax payment over an agreed period of time today. There will be a dedicated helpline with 2,000 staff standing ready to help. Due to the Coronavirus outbreak.

Stamp Duty Land Tax

First Time Buyer’s Relief in England and Northern Ireland will be extended so that all qualifying shared ownership purchasers can benefit, even if they have not elected to pay SDLT on the full purchase price ofthe property. This is backdated to include purchases since 22 November 2017.

Non-UK Residents

Will see new stamp duty surcharge at a rate of 2%, effective from April 2021

Capital Gains Tax
– Entrepreneurs Relief

The reform will see the annual lifetime allowance reduced from £10m to £1m.

– Lettings Relief

Lettings relief can reduce capital gains tax due on the sale of a property as you can claim up to £40,000 individually or up to £80,000 if a partner or spouse jointly owns the property.

The final period of exemption relief can be applied to a property up for sale, provided the property is sold within 18 months of the owners moving out. The final period of exemption will be reduced to 9 months, and it will increase the capital gains tax liability for anyone selling their main residence and who has accrued a period of private residence relief.

Pensions

The taper annual allowance threshold increased to £200,000 from £110,000. Also the minimum amount that can be tapered has been reduced from £10,000 to £4,000.

About Pennyhills®

London based Accountants specialising in accounting and tax solutions for Entrepreneurs, with their businesses, across the UK

We are a Silver-status partner with Xero and our practice regulated by the Association of Chartered Certified Accountants (ACCA).

We are authorised by ACCA to carry out a range of investment activities.

Please follow and share


Processing…
Success! You're on the list.

The 2020 Budget – Overview

Overview

The newly appointed Chancellor Rishi Sunak, delivered his first budget speech, this afternoon.

Promising to boost the economy and get the country through the Coronavirus outbreak.

Changes to Entrepreneurs Relief, bringing down the lifetime allowance, was also on the agenda.

This morning, the governor of the Bank of England, Mark Carney, announced an emergency reduction of interest rates from 0.75% to 0.25%. In an effort to support growth and promote spending.

But how does this affect me and my business, I hear you say?

Due to the Coronavirus outbreak, employees who need to self isolate can claim statutory sick pay as of today. Together with self employed workers, who were not eligible, will be able to claim contributory Employment Support Allowance (ESA) from today.

Self employed workers will be able to defer tax payments over an agreed timeframe. With 2,000 additional, dedicated staff from HMRC to support this.

The Chancellor also spoke to support employers, with a Coronavirus Business Interuption Loan Scheme. This will help to plug any temporary cash losses and allow employers to claim back any statutory sick pay paid out.

Changes to Entrepreneurs Relief, bringing down the lifetime allowance, was also on the agenda.

Changes to National insurance relief for NHS dentists and doctors, saw changes to the tapered relief scheme.

All in all, it was a positive budget, with something for everyone, really promoting business. It is important to note, how smooth the process will be for businesses and dentalpreneurs to liaise with HMRC during this Coronavirus outbreak.

A summary of all the key tax takeaways follows overleaf. We look forward to receiving more detail on all measures announced and expect the Finance Bill to be published on 11 July 2020.

Pennyhills® Dental Accountants?

London based Accountants specialising in accounting and tax solutions for Entrepreneurs, with their businesses, across the UK

We are a Silver-status partner with Xero and our practice regulated by the Association of Chartered Certified Accountants (ACCA).

We are authorised by ACCA to carry out a range of investment activities.

Please follow and share


Processing…
Success! You're on the list.