Directors – do you know the most tax efficient way to pay yourself?

As a director of a limited company, you are probably keen to know the most tax efficient way to take money from the company personally. This is usually by taking a combination of salary and dividends from the limited company. The salary is paid in the same way you’d pay a regular employee and needs to be reported via the HMRC’s Real Time Information (RTI) rules.

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Have you been required to work from home, even for one day since 6 April 2020? Then you may be entitled to claim for expenses for the whole of the 2020-21 tax year

You have always been able as an employee to claim expenses for working from home if your employer requires you to work at home. This has become much more relevant during the 2020/21 tax year due to the COVID-19 pandemic. HMRC has confirmed that claims from employees working at home due to coronavirus measures, if their usual workplace is closed, count as working from home for tax purposes.

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HMRC’s new creditor status – how will it affect you?

From 1st December, under the Finance Act 2020, HMRC will regain its status as a ‘preferential creditor’ meaning it will be repaid certain outstanding taxes, including Employees’ PAYE and National Insurance Contributions, VAT and CIS, ahead of lenders’ floating charges and suppliers if a business becomes insolvent.

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Further Furlough Guidance for Claim Periods from 1st November 2020 – CJRS

The government has published further guidance regarding the extended furlough scheme today (11th November 2020). The basic workings of The Coronavirus Job Retention Scheme have not changed – the scheme will remain open until 31 March 2021. From 1 November 2020 you can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month.

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Two further SEISS Grants available for sole traders whose business has been negatively affected by Covid19

The Self-Employment Income Support Scheme grant extension provides critical support to the self-employed in the form of 2 further grants, each available for 3 month periods. Grant 3 covering November 2020 to January 2021 and Grant 4 February 2021 to April 2021.

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Lockdown 2.0 SEISS: What support is there if I am self-employed?

URGENT UPDATE: 3.40pm Monday 2nd November – The third SEISS grant for November has just been increased from 40% of your average monthly profits to 80% – December and January 2021 are still currently at 40%

If you are self employed you still have access to two more SEISS grants as part of the Winter Economy Plan with the third SEISS grant for November covering 80% of your average monthly profits.

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Extension to the Coronavirus Job Retention Scheme (CJRS) – will you now be eligible?

On Saturday 31st October, Boris Johnson confirmed that the CJRS, also known as the furlough scheme, will be extended to cover the period up until the 2nd December 2020. However, it is likely that, if National lockdown restrictions are extended, the furlough scheme will be extended with it.

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