Resources

Covid-19: Business rate help for smaller businesses

As the Government’s response to the Covid-19 pandemic evolves, various measures have been announced to help business struggling to cope with the impact of the virus. The measures include help through the business rate system for smaller businesses and those in certain sectors. Grants for businesses eligible for small business rate relief Full (100%) small…


Making tax-free payment to employees working from home

As a result of the Coronavirus (COVID-19) pandemic, many workers have been forced to work from home. While working from home saves the costs of commuting to the workplace and perhaps allows workers to adopt a more relaxed dress code, there are also costs associated with working at home. Workers may need to equip themselves…


Claiming the National Insurance employment allowance for 2020/21

The National Insurance employment allowance is available to eligible employers and can be set against the employer’s secondary Class 1 National Insurance liability. In the 2020 Budget, the Chancellor announced that the allowance would be increased to £4,000 for 2020/21. However, from 6 April 2020, it is only available to employers whose Class 1 National…


Profit extraction in 2020/21 – What is the optimal salary?

A popular tax-efficient profit extraction strategy used by personal and family companies is to take a small salary and extract further profits as dividends. Where this approach is adopted, the starting point is to determine the optimal salary. While this will depend on personal circumstances and there is no excuse for not doing the sums,…


Help for Self Employed

New self-employed income support scheme Bad news for company owners!Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes. Speaking live from Downing Street, the Chancellor says that…


Winding up your personal service company

Where the personal service company is not needed, the question arises as how best to wind it up and extract any remaining cash. Striking off Striking off can be an attractive option where the personal service company can pay its debts and has less than £25,000 left in the company to extract. The advantage of…


COVID-19 Update From HMRC

It seems that anywhere we look, we can’t escape the blasted Corona! Here’s the latest announcement by the chancellor, Rishi Sunak on Friday 20th March. COVID-19: support for businessesCOVID-19: guidance for employees COVID-19 support for businesses The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and…


IR35 changes for the private sector DELAYED for at least a year

On Tuesday 17th March 20200, in a surprise announcement, the Government agreed to defer the changes to IR35 and the private sector for another year. This was as a result of the negative impact caused by the COVID-19 pandemic.  Perhaps the most important point to make is that the underlying principles of IR35 will remain unchanged….


Budget 2020: In Detail

Personal Tax Rates and allowances for 2020/21 As already legislated for, the personal allowance remains at £12,500 and the basic rate limit at £37,500. Indeed, all income tax rates and allowances remain the same as for 2019/20 apart from cost of living increases to blind person’s allowance and married couple’s allowance. This applies equally across…


Budget 2020: First Thoughts

In the first Budget of the decade and the first one in over 50 years outside of the EU, the new Chancellor, Rishi Sunak, appeared to unveil, against the backdrop of the ever-growing Coronavirus outbreak, a series of giveaways. This was headed by a £30million investment to mitigate the impact of the virus. In a further…