The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. You will get a taxable grant based on your average trading profit over the 3 tax years:
A new Capital Gains Tax reporting and payment on account system was introduced for residential property disposals by UK resident taxpayers from 6 April 2020. The new system as originally announced required the disposal to be reported and any Capital Gains Tax on the disposal to be paid on account within 30 days of completion.
The latest Finance Bill includes important changes to private residence relief that took effect from 6 April 2020. The first change is to limit to just 9 months the period prior to disposal that counts as a period of deemed occupation and thus exempt from CGT even though the owners are not living in the property during that period.
With many employees and the self-employed being furloughed, being made redundant or making lower profits their income for 2020/21 may well fall below the £50,000 limit at which child benefit starts being taxed. The charge is 1% for every £100 that adjusted net income exceeds £50,000 multiplied by the child benefit claimed in respect of the children.
The Coronavirus Job Retention Scheme claims portal opened on Monday 20 April and early indications are that it seems to be working smoothly but with a few teething problems as you would expect from a brand-new system.
Some businesses will prosper during the Pandemic (e.g. those that are already online), and some will need to repurpose or “pivot” into new areas. Others will need to hibernate and regrettably some will not survive the Pandemic. Last week we talked about “Cocooning a business” and this week we focus on “pivoting or repurposing”, we have written a paper on this please follow the links if you wish to download.
HMRC have issued some more details relating to the claims for the Self-Employed Income Support. The latest guidance was issued by HMRC on 1 May and information around this can be found here. As with many HMRC “guidance notes” issued recently, these tend to be quite basic, and, unfortunately, leave many questions unanswered.
You can claim if you are a self-employed individual or a member of a partnership and you carry on a trade which has been adversely affected by coronavirus; you traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year and you traded in the tax year 2019 to 2020
you intend to continue to trade in the tax year 2020 to 2021
In outline the Self-Employed Income Support Scheme allows the self-employed to claim 80% of their average profits for the period up to 2018/19 limited to £2,500 a month, initially for a three-month period.
In a statement to the Commons, Chancellor Rishi Sunak announced a new ‘bounce back’ small loan scheme for businesses affected by Covid-19. The Chancellor announced the launch of a new “micro loan” scheme providing a simple, quick easy solution for those in need of small loans, which he termed “bounce back loans”.
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