In The News

HMRC has updated the guidance on how to work out national insurance contribution (NIC) payments for directors. Directors have to use an annual earnings period to work out their liability for Class 1 NICs. This figure must include all the director’s earnings when working out NICs, including fees and bonuses. Directors are classed as employees […]

HMRC recently said that they were going to use email to communicate about the change in VAT direct debit payments. HMRC have also sent an email to a number of established self-employed traders on 26 February 2021 asking them to prove they are still trading before they can claim the next two grants. This use of

The online service for applications for the self-employment income support scheme (SEISS) is now open. It is expected that up to 600,000 self-employed individuals will be able to apply for the support scheme. Claims must be submitted by 1 June 2021. To be eligible for the fourth grant you must be a self-employed individual or

Smaller businesses can apply for grants of up to £2,000 to help them adapt to new customs and tax rules when trading with the EU. Businesses that solely trade with the EU and are new to importing and exporting processes, are encouraged to apply for the grants. You can use the grant for training on:

As we all start to lift our heads again and peer at the horizon HMRC is starting to change gear and its normal plumage is starting to return and the “Mr nice guy” feathers start to drop off. The rhetoric is beginning to move away from helping to keep businesses afloat, to checking that these

Off-payroll working (IR35) The off-payroll working rules come into force for the private sector on 6 April 2021. The rules aim to ensure that PAYE is accounted for where a contractor would have been an employee of the client, but for the fact that the client has a contract with the contractor’s personal service company

Directors need to be careful to avoid paying illegal dividends or they could become personally liable for company liabilities. Many directors of owner managed businesses, including ourselves, pay a portion of their income as dividends and the end of the tax year is a time when dividend will often be considered, even if it is

The Office for Budget Responsibility has predicted a default rate of 40.4% on bounce back loans (BBL) and Coronavirus business interruption loans (CBIL), with £27.2bn of loans expected to be written off. It has been suggested that 59% of businesses have borrowed more than 20% of their turnover, a significant measure which according to some,

The government’s new capital allowance ‘super-deduction’ hopes to boost business investment and productivity, but good planning and record-keeping are essential for businesses hoping to take advantage. It also only applies to companies. For two years from April 2021, companies’ investments in plant and machinery will qualify for a 130% capital allowance deduction, providing 25p off

The Chancellor, Rishi Sunak, delivered his second budget on 3 March. We have set out below some of the highlights that we think will interest people on our patch. Please feel free to contact us if you have any questions about how the budget provisions will affect you. Government Initiatives Freeports These will be areas