Vic's Bookkeeping

03/03/2021

The UK Government has today announced that the Self-Employment Income Support Scheme (SEISS) will continue until September with a fourth and fifth grant. We will contact customers who may be eligible for the fourth SEISS grant from mid-April to tell them how they can claim.

The fourth and fifth grants will take into account 2019 to 2020 tax returns and will also be open to those who became self-employed in the 2019 to 2020 tax year. This means that some customers may be able to claim, even if they were not eligible for previous grants.

To qualify, you must have filed your 2019-20 Self Assessment tax return by 2 March 2021, at the latest.

Fourth SEISS grant

The UK Government will pay a taxable grant which is calculated based on 80% of three months’ average trading profits, paid out in a single payment and capped at £7,500 in total. The value of the grant is based on an average of your trading profits for up to four tax years between 2016 to 2020, where available.

The grant will be available to claim by late April. As with previous grants, trading profits must be no more than £50,000 and at least equal to non-trading income in order to claim the fourth SEISS grant.

Eligibility for the fourth SEISS grant will depend on whether you experienced a significant financial impact from coronavirus between February 2021 and April 2021.

HMRC will take into account your 2019-20 return when assessing your eligibility for the scheme. This may also affect the amount of the fourth grant, which could be higher or lower than previous grants you have received.

For this period, you will need to make an honest assessment that there has been a significant reduction in trading profits due to reduced demand or your inability to trade. If you make a claim, you will need to keep appropriate records as evidence.

For further details of the changes to eligibility and calculation of the grant, please visit GOV‌‌‌.UK and search 'Self-Employment Income Support Scheme'.

What happens next

HMRC will contact you from mid-April if we believe you may be eligible for the fourth SEISS grant to tell you how you can claim. You will be provided with your personal claim date, which will be the earliest date you can submit a claim for the fourth SEISS grant.

Claims for the fourth SEISS grant must be made by 31‌‌ ‌May 2021, at the latest.

The UK Government has also announced that there will be a fifth and final SEISS grant, covering the period between May and September, which you will be able to claim from late July if you are eligible.

The amount of the fifth grant will be determined by how much your turnover has been reduced. The grant will be worth 80% of three months’ average trading profits, capped at £7,500, for those with a higher reduction in turnover (30% or more). For those with a lower reduction in turnover, of less than 30%, the grant will be worth 30% of three months’ average trading profits.

Further details will be provided on the fifth grant in due course.

25/01/2021

Self Assessment Tax Return deadline has been extended to the 28th Feb without a penalty, although we’re encouraged to complete by 31st Jan if possible! Interest charges on outstanding balance from 1st Feb though.

30/04/2020

IMPORTANT!

HMRC will never ask for personal or payment information by text or email.

Report scams here: https://www.gov.uk/report-suspicious-emails-websites-phishing?utm_source=HMRCgovuk&utm_medium=OwnedTwitter&utm_campaign=phishing via

15/04/2020

Update on HMRC Self Employed Income Support Scheme:

HMRC will contact you by the middle of May if it calculates you are entitled to a grant under the scheme. HMRC still anticipates this will be paid in early June.

The grant will initially be for three months.

Losses arising in the years 2016/17 to 2018/19 are deducted from profits before calculating the average profits for the grant.

If you have run more than one business in a year, those profits will be added together, losses deducted from profits, or losses added together as appropriate, to calculate the figure to use for each tax year.

A list of allowable expenses for trading profits, including office and travel costs, clothing expenses, staff costs, things you buy to sell on, financial costs, costs of your business premises, advertising or marketing, and any training courses related to your business.

15/04/2020

Urgent.

If you're self-employed, you must submit your already late 2018/19 tax return by Thu 23 Apr to be eligible for help. In early June, the Self-Employment Income Support Scheme will pay 3mths of grants worth up to 80% of self-employed profits, capped at £2,500/mth. To be eligible, you must have filed a 2018/19 tax return.

Most have, as we're already way past the usual 31 Jan self-assessment deadline, but it's been extended for coronavirus support purposes to 23 Apr. Miss it and you're not eligible for support. See self-assessment help or the charity TaxAid can give those on low incomes support if struggling to do it.

14/04/2020

SMALL BUSINESSES AND SOLE TRADERS

With all the Covid19 uncertainty, filing your 19/20 tax return can help if you are due a refund, but even completing them will help HMRC work out your average for your 80% due to you, so if you don’t have the time or uncertain what to do and don’t want to pay a big accountancy bill please get in touch.

14/04/2020

14/04/2020

Manual Bookkeeping Services Available for Small Businesses and Sole Traders, preparation of accounts for Tax Purposes, Quick Books and Zero Books available soon. Please get in touch to discuss your requirements