2nd SEISS grant now open for applications (started 17 August 2020)

2nd SEISS Grant Applications – NOW OPEN!

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2nd SEISS grant now open for applications (started 17 August 2020)

The Government previously announced that, much like the furlough scheme, the Self-Employment Income Support Scheme (‘SEISS’) is to be extended for a second period and in fact it’s now open for applications.

If your business has been adversely affected as a result of COVID-19 on or after 14th July 2020 you can make a claim from 17th August 2020 for the second and final grant.

You can make a claim for the second grant, if you’re eligible, even if you did not make a claim for the first grant. 

Your eligibility for the 2nd SEISS grant must meet the same criteria as those outlined for the 1st grant:

  • you must have traded in the tax year 2018/19 and submitted your Self Assessment tax return on or before 23 April 2020;
  • you must have traded as self-employed in the tax year 2019/20;
  • you must have all intentions to trade as self-employed in the tax year 2020/21;
  • your average trading profits must be less than £50,0000;
  • your trade must have been adversely affected by coronavirus.

Like the first SEISS grant, the second SEISS grant is a taxable one. However, this time, it is based on 70% of your average monthly trading profits. It will be paid out in a single instalment, based on a 3-month period of average profits, and is capped at a maximum of £6,570.

Taxfile will be in touch with clients to remind them. Now that the 2nd grant is available, do feel free to call us if you’d like our assistance in helping you to make your claim.

Please remember the deadline for claiming the first SEISS grant was 13 July 2020. You can start claiming the second SEISS grant now, as it opened to applications on 17 August 2020.

Please call Taxfile on 020 8761 8000 if you need help to make a claim for either of these SEISS grants and we’ll be happy to help. Alternatively, fill in and submit the form below and we’ll be in touch to help you.

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    [Article updated 17 August 2020].

    First SEISS Grant Application Deadline Day Looms

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    First SEISS Grant Application Deadline Day Looms

    Back in April, as a result of the Coronavirus pandemic, the Government announced the Self Employment Income Support Scheme (‘SEISS’), a taxable grant to support self-employed individuals and businesses affected by COVID-19.

    The deadline for claiming this initial grant has been set as Monday 13 July 2020.

    After this date you will no longer be able to claim for this first SEISS grant.

    The 1st SEISS grant covered a 3 month period, for loss of income due to COVID-19, from April to June 2020. If you are eligible for this grant, you only have until Monday 13th July 2020 to make the claim. After this date the applications will close and you will have no means of applying.

    Need Help?

    If you have been putting it off, have not checked your eligibility status, or are unsure how to do so, then please call Taxfile on 020 8761 8000, and we can help you. Alternatively, fill in and submit the form below and we’ll be in touch.

    (Interested in the 2nd SEISS grant? Click here).

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      Tax Returns for Self-Employed Londoners - Special Offer

      Tax Returns for Self-Employed Londoners – Special Offer!

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      Tax returns for self-employed Londoners - Special Offer!
      Are you self-employed? Are you late filing your 2018/19 Self-Assessment tax return? If so, now is the time to get Taxfile to sort it out for you.

      There are 4 important reasons why you should file your tax return now:

      1. Save money, with our special offer!

      For a very limited time, we are offering to do 2018-19 Self-Assessment tax returns for self-employed Londoners for just £199 + VAT (our usual pricing is from £277 + VAT). That’s a saving of nearly £94 including VAT.

      2. Stay eligible for Government Help during the lock-down

      Self-employed people who are struggling financially during the coronavirus lock-down may be eligible for financial help from the Government. This is in the form of their recently announced Self-Employed Income Support Scheme (‘SEISS’). However, to remain eligible, you must have filed your 2018/19 Self-Assessment tax return by 23 April. If you miss that deadline, you will no longer be eligible for that Government assistance.

      3. Avoid severe fines from HMRC for being so late

      The original deadline for submission of your 2018/19 Self-Assessment tax return was actually 31 January 2020. So, if you didn’t already file your tax return by that date, you already owe HMRC a fine of £100 minimum. That’s nothing, though, compared to the penalties they will start charging you after April. From 1 May, you will owe an additional £10 per day, every day from that date if you still haven’t filed your 2018/19 tax return. So, for example, after a week you’ll owe the original £100 plus an additional £70 as a minimum, or the £100 plus a further £140 after two weeks and so on. You may also be charged interest on top of all of that if you owed HMRC a tax payment on the original 31 January deadline and still haven’t paid it.

      4. You may be due a tax rebate

      Some self-employed people may be due a tax rebate. This depends upon your

      Read more

      Wandsworth Council chooses Taxfile for its Tax Return Support Scheme

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      In an extraordinary measure to help its community, Wandsworth council has set up a Tax Return Support Scheme for those needing to do a 2018/19 tax return in order to qualify for the Self-employment Income Support Scheme (SEISS).

      In response to COVID-19, SEISS will provide direct cash grants worth 80% of trading profits up to a maximum of £2,500 per month for self-employed individuals with profits of less than £50,000 per annum.  To be eligible for this scheme, you will need to have submitted your tax returns for 2018-19 by the extended deadline of Thursday 23 April.

      To assist the community captured by Wandsworth council, the scheme is to help members submit tax returns when they otherwise might not have been in a position to do so.

      At Taxfile we are delighted to be considered as one of their ‘local accountants’ who will advise and assist residents to complete their 2018/19 tax returns.   This service is provided by Wandsworth council for FREE, as the council covers the cost.

      The submissions need to be sent to HMRC by no later than 23/04/20, so the council has placed a cut-off date 17/04/2020 to take advantage of their free support.

      To be eligible for Wandsworth council’s Tax return Support Scheme you must;

       

      • Be a Wandsworth resident
      • Be self-employed (sole trader, freelancer or CIS contractor)
      • Have a Unique Tax Reference number (UTR)
      • Have made a profit of less than £50,000 or less in the 2018/19 tax year
      • Not yet have submitted your 2018/19 tax return
      • Not be a director of your own limited company

      [UPDATE: Please note that the Wandsworth council’s scheme has now ended].

      If you would like any advice, we offer a free 20-minute consultation, please call us on 020 8761 8000.

       

      Coronavirus: Government Support for the Self-Employed

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      Rishi Sunak, the UK Chancellor of the Exchequer has announced the self-employed and those who run a business as a partnership are to receive 80% of earnings, calculated from the mean average of their trading profits for the 3 previous tax returns (2016/17, 2017/18, & 2018/19).  The trading profit is the taxable profit that is calculated as part of your income tax return, from either self-employment or as part of a partnership.

      The scheme is called the Self-Employment Income Support Scheme (SEISS).

      The average is determined by adding the trading profits for the three years, then dividing by three (if you’ve only been trading for two years, the government will add those two years and divide by two instead).  This average can then be divided by 12 to calculate you monthly income average.  80% of this average will be what the government will offer you as a grant which is taxable (-meaning it will need to be declared in your 2020/21 tax return as income received).

      The grant is capped at £2,500 p/m and last only for 3 months (although this may be extended depending on how the coronavirus pandemic plays out in the UK).

      For you to be eligible, more than half of your income must come from your self-employment. In other words, you can’t claim if more than half your income come comes from another source, such as full-time employment.

      Similarly, if more than 50% of your income comes from other sources usually included on your Self-Assessment tax return, such as investment or rental income, then you are not eligible.

      Furthermore, you aren’t eligible for the grant if the 2018-19 trading profit is equal to or greater than £50,000, and the average profits for previous years starting in 2016-17 are equal to or greater than £50,000.

      If you have not yet submitted your 2018/19 tax return (that was due 31/01/20), you will NOT be eligible for the grant.  If you were self-employed during this period (06/04/2018-05/04/2019), then you have till the 23rd of April to submit your tax return and qualify for the SEISS.  Contact us at Taxfile to help submit your 2018/19 tax return on 020 8761 8000.

      Who isn’t eligible?

      You are not eligible for the SEISS grant if any of the following applies:

      • Your trading profits are equal to or more than £50,000 – for both tax year 2018/19 and when averaged across the tax years you traded in during last three full tax years starting in 2016/17.
      • You aren’t self-employed or in a partnership at the moment, or don’t intend to be in the future. It’s not enough to merely be enrolled for Self Assessment and to have undertaken self-employment work or have a role in a partnership at some point in the past year. You must be trading now and intend to do so in the 2020/21 tax year too.
      • You failed to submit a Self Assessment tax return for the 2018/19 tax year before 23 April 2020.
      • You haven’t lost trading profits due to the coronavirus outbreak.
      • Less than 50% of your income comes from your self-employment or partnership.

      To apply for the SEISS, the government will contact you (via post) and invite you to apply online, using details they have via your self-assessment registration.  It is estimated that the scheme will be available from June 2020, and that will be the earliest that the grant will be available to the self-employed.

      Other coronavirus measures for self-employed workers

      There are other coronavirus emergency measures that the government has put in place that might help you, as a self-employed individual or member of a partnership.

      Deferred income tax payments

      Self Assessment payments due on 31 July 2020 (that is, income tax payments on account) can be deferred until 31 January 2021.

      Anybody who fills in a Self Assessment return and who is liable for payments on account can make use of this, not just the self-employed.

      Time to Pay

      If you’re self-employed and struggling to meet outstanding tax obligations due to financial difficulties, you can contact HMRC to see if you’re eligible for support via the existing HMRC Time to Pay Scheme.  This allows more time to settle financial obligations if you can demonstrate a reasonable ability to pay in future. Contact HMRC on the special coronavirus helpline: 0800 0159 559.

      Universal Credit increases

      Because of the coronavirus outbreak, the government has increased Universal Credit amounts beyond the already anticipated yearly increase as of April 2020.

      The standard allowance will be £409.89 per month.

      Grants for businesses that pay little or no rates

      If your business operates from a property and is registered for the Small Business Rate Relief (SBRR), or Rural Rate Relief (RRR), then it will receive an automatic grant of £10,000 from your local authority.

      You don’t need to do anything to receive this (note: the requirements differ depending on where in the UK your business is located).

      However, if your business doesn’t pay any rates, you may need to contact your local authority to ensure it has your bank details for the payment.

      Coronavirus Business Interruption Loan Scheme

      Businesses can apply for a loan with approved lenders. The government will underwrite 80% of the loan, making the loan more widely available to those who might not normally be able to apply.

      It will also pay the interest for the first six months.

      MOTs have been suspended

      Those who use a vehicle for their self-employed work will be pleased to hear that MOTs have been suspended for six months, provided the MOT falls after 30 March 2020.

      The vehicle must be kept in a road-worthy condition but the exemption is automatic, so there’s no need to apply for it.

      If in your self-employment business you use a lorry, bus or trailer then there are different rules – MOTs are suspended for three months as of 21 March 2020.

      This again is automatic, although you may need to apply under certain conditions.

      Deferral of VAT Payments

      If you are a VAT registered business in the UK and have a VAT payment to make between 20/03/20 & 30/06/20, this payment can be now deferred till 31/03/2021 without any penalties or charges imposed.  If you pay via Direct debit, this needs to be cancelled with your bank for the deferment to occur.   More information can be found at deferral of VAT payments due to coronavirus (COVID-19).

      Landlords & Property Investors Take Note: New Capital Gains Tax Rules for 2020

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      The new capital gains tax (CGT) rules will come into effect on April 2020, which will more than likely impact the sales of most additional properties in the UK.

      CGT is paid on profits from the sale of investment properties that are not the sellers main place of residence. The amount of CGT paid is dependent on the annual income of the individual.  Current capital gains tax rates on property for 2019-2020 are 18% for basic rate taxpayers (£12,001-£50,000) and 28% for higher rate taxpayers (£50,001+).

      The changes coming into effect in 04/2020 are threefold:

      1. The timing of when you pay the CGT to HMRC
      2. The amount of tax relief you can claim if you previously lived in the property
      3. How the letting relief will work

      Timing:
      Previously a UK resident CGT has been calculated & submitted alongside their self assessment income tax irrespective of the completion date for the sale of the investment property. From April 2020, sellers will need to pay the full amount owed within 30-days of the completion of the sale and failure to pay within the 30-day limit will result in penalties.

      Tax Relief:
      The private residence relief (PRR) applies to landlords selling a property where in the past they have used that property as their main place of residence.

      Currently, you are exempt from paying tax on the final 18-months that you owned the property, regardless of whether it was being rented. From April 2020 it is expected to be halved to 9-months.  So once you have not lived in a property that was once your main place of residence for longer than 9-months, you will probably be required to pay some CGT on the profits when it is sold.

      Lettings Relief:
      As a landlord, if you have qualified for PRR, then it may also be possible to claim lettings relief.

      Letting relief can currently be claimed if you used to live in the property being sold, and have also let out part or all of it for residential accommodation.

      You can claim the lowest of the following:
      the same as the amount of PRR you will receive
      £40,000
      the chargeable gain you make from the period you let out the property

      When the new rules come in from April 2020, you will only be able to claim this relief if you live there when it is being sold  (i.e if you share occupancy with your tenant).

      Under current rules there are certain costs that can be deducted from your CGT:

      • Stamp duty paid on the purchase of the property
      • Estate agent fees
      • Solicitor fees
      • Improvement costs that added value to the property (such as extensions)
      • Qualifying buying and selling costs (such as surveyor fees)

      Aside from this, capital gains tax is only payable on property that is owned by individuals. If the property is owned by a limited company, corporation tax is applied instead of CGT.

      Corporation tax is currently 19%, but the current government hinted at a reduction to 17% for 20/21 but we await the confirmation from the Chancellor budget due in the Spring of 2020.

      If you have any queries around CGT or need an accountant to calculate & submit your CGT, please don’t hesitate to contact us.  We offer a free 20-minute consultation.

      Over 400 tax returns submitted

      We Submitted Over 400 Tax Returns in January!

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      Over 400 tax returns submitted

      Taxfile prepared and submitted more than 400 Self-Assessment tax returns for clients during January. That’s about a hundred a week and goes to show just how busy it gets for us during January, the busiest month in our accounting calendar.

      Did you submit your tax return on time?

      The deadline for submission of your tax return (and payment of any tax due) was 31st January at midnight. Did you manage to submit yours in time? If not, you’re already into the ‘penalty’ period where HMRC basically fine you for being late. The penalty comes in the form of an initial £100 fine but that increases, potentially very significantly, as you get later and later with your tax return submission. If you look at the table below, it’s safe to say that you can end up owing a thousand pounds or more if you bury your head in the sand and are 3 months late, or more.  If you continue to leave your tax payment and tax return submission outstanding for six months or more, the penalty is £1300 as a minimum – perhaps more (it depends upon how much tax you owe).

      Late return penalties by HMRC

      Is your tax return & tax payment late? Taxfile can help!

      If you are late submitting your tax return or paying tax and don’t know how to straighten things out, don’t Read more

      Your Tax Return - All Wrapped Up for Christmas!

      Your Tax Return – All Wrapped Up for Christmas!

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      Your Tax Return - All Wrapped Up for Christmas!

      Urgent: rather than waiting until January, start sorting out your Self-Assessment Tax Return out right now.

      Why now? Well, because every tax expert and accountant in the land is about to hit their busiest month in the accounting year — January. For tax professionals, January is a frantic time because everyone wants their tax matters sorted out at the same time due to HMRC’s deadlines. So, we have to take on extra staff, extend our opening hours and open at weekends — just to keep up with the demand. All of this costs extra money, so we have to increase charges a little during January to cater for the enormous increase in workload. January also becomes quite a bottleneck. In January alone, we are likely to have to prepare and submit around 500 Self-Assessment tax returns for our customers and that’s a very tall order.

      So — act now & save money on your tax return

      You can avoid extra charges by coming in to see us for your tax return now — well before January. It makes sense to come in early in November or December if you can. That way, we can have your tax affairs sorted in time for Christmas, avoiding the bottleneck. You can then relax in the knowledge that your tax matters have been sorted, ahead of the rush, at the best possible price.

      Saturday opening

      We’re open Saturday mornings at Tulse Hill from 9am until 1pm for a limited time. So, make the most of this opportunity and book a weekend appointment now, while it costs nothing extra.

      Get a tax refund for Christmas!

      We can help prepare and submit your Self-Assessment tax return and let you know the all-important amount of tax you need to pay or, indeed, may even be owed by HMRC. If you’ve overpaid tax, we could even get your refund for you in time for Christmas — what a Read more

      HMRC’s Anti-Money Laundering Fees Increase

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      In December 2018, the Financial Action Task Force (FATF), an organisation founded on the initiative of the G7 to develop policies to combat money laundering, stated;

      ‘…the UK had a well developed & robust regime to effectively combat money laundering & terrorist financing.  However, it needed to strengthen its supervision, & increase the resources of its financial intelligence unit.’

      The FATF conducted an assessment of the UK’s anti-money laundering & counter terrorist financing (AML/CFT), and as a result of this assessment HMRC has decided to inject money into the unit to increase supervision for those organisations that are not supervised by a professional accounting or tax body for AML purposes.

      Such businesses are required to register for supervision with HMRC, which promises to provide in return more staff available with face-to-face and desk-based intervention with registered and un-registered businesses.  They will also aim to provide more educational products and activities, including webinars & online learning programs.  They hope the education will help businesses to approach all AML activities correctly from the outset.

      The new fees for anti-money laundering supervision, which came into effect on 1st May 2019, has disgruntled many tax & accounting businesses.

      • the annual registration fee increased from £130 to £300 per premises for businesses with a turnover of £5,000 or above
      • the annual registration fee increased to £180 for businesses with a turnover below £5,000
      • the charge for fit and proper (F&P) testing increased to £150 from £100.
      • the approval check fee will remain at £40

      On 15th April 2019, the Treasury issued a consultation of the introduction of EU’s Fifth Money Laundering Directive (5MLD) into UK’s national law.  The consultation closes on 19th June 2019 & the impact of this will highlight where accountants may have to further tighten their AML compliance.  The 5MLD will expand the definition of a tax adviser in terms of money laundering compliance, as well as highlight diligience around electronic money & individual identification, based on FATF recommendation to understand the ownership & control structure of customers.