Accountants for Small Business London – Hire Certified and Experienced at Unbelievable Rates

Accountants for Small Business London – Hire Certified and Experienced at Unbelievable Rates

Are you a small business owner or an entrepreneur with a start-up business in London? If so, then you might be aware that how important it is to find experienced accountants for your small business. Whether you have been in the business for 5 months or 15 months, managing your company’s accounts and other financial transactions with the help of accountants for small businesses in London is vital for the success of your business.

A small business accountant from a reputable firm like Affinity Associates can help you with a lot of things – from managing your accounts to tax preparation and VAT filing. He/she can also serve as a trusted advisor, offering professional assistance to help you manage your cash flow, assess risk, plan for growth and more. Affinity Associates has a team of certified and experienced tax accountants to offer highly accurate and professional accounting services to prevent any major financial blunders. Here’s the list of services you can expect from a small business accountant in London:

  • Bookkeeping
  • Tax accounting
  • VAT preparing and filing
  • Payroll
  • Strategic business planning
  • Succession planning
  • Incorporation Services
  • More

Hire Accountants for Small Business in London

Affinity Associates is known for offering highly professional accounting services in the UK to the small businesses of Staines, Leatherhead, Weybridge, Chertsey, Caterham, Dartford, Uxbridge, Harrow, Watford, Enfield, Loughton, Brentwood, and Romford. It’s been more than four decades since Affinity has been helping businesses grow considerably. If you are looking to hire a tax accountant for your business in London, then you can trust Affinity for your business. If you want to learn more about the pricing, hiring models and anything else, then feel free to contact Affinity at +44 20 8903 2077. Or fill out our contact form to schedule a free consultation.

Have Questions Before Hiring an Accountant? Ask Us.

Accounting is one of the most important aspects of business; hence, it is important that you pay equal focus on it as well. However, if you are occupied and not sure about how to manage your accounts, they hire small business tax accountants to take care of your company’s finances. The accountant you hire can help you with activities such as tracking all the expenses, developing a bookkeeping system, investigating import tax, setting up a payroll system, determining tax obligations and many more.

If you are in search of accountants for small business in London that can help you in the most efficient way possible by meeting all your queries, your search ends here at Affinity Associates. The latter offers the best small business accounting services in the UK at the most competitive prices. The first step to hassle-free business accounting starts by reaching out to one of our executives.

For a free quote, consultation, or advice, please contact us at +44-20-8903-2077 or visit https://www.affinityassociates.com. Let’s get connected over social networks – like us on LinkedIn and Facebook for daily updates.

Recent Tax Changes and Things to Be Aware of In the Future

Recent Tax Changes and Things to Be Aware of In the Future

Tax e-News

Welcome to our monthly newswire. In this issue we cover a number of recent tax changes and things to be aware of in the future. As usual contact us if you wish to discuss any matters further.

NEW PERSONAL SERVICE COMPANY RULES START THIS MONTH

The “off-payroll” working rules that apply to certain workers supplying their services to clients via their own personal service companies start from 6 April 2021.

Under this new regime end user businesses will be required to determine whether that individual would have been treated as an employee or not if directly engaged. This will be a significant additional administrative burden on the large and medium-sized businesses to whom the new rules apply. This is a complex area based on different decisions by the courts and HMRC suggest that end user organisations use the CEST (Check Employment Status for Tax) online tool on their website to help with the determination. The end user business is then required to issue the worker with a Status Determination Statement setting out the reasoning for their decision, a copy of which is also given to any agency supplying the worker if relevant.

The determination notifies the agency that PAYE and NIC should be deducted from payments to the worker’s personal service company. That information should be passed down the labour supply chain if other entities are involved, and the ultimate fee payer is liable for making the tax and NIC deductions. If HMRC are unable to collect the tax from the fee payer, the liability will pass up the labour supply chain thus encouraging the end user organisation to carry out due diligence to limit their exposure.

The 130% rate does not apply to equipment such as air conditioning and central heating that normally qualify for a 6% writing down allowance. Such “integral features” qualify for a special 50% first year allowance for the same two-year period.

Please contact us to discuss the tax implications of major capital expenditure decisions.

NEW ENHANCED LOSS RELIEF RULES MAY RESULT IN EXTRA TAX REFUNDS

In the March Budget it was announced that the normal one year carry back for trading losses would be extended to three years. This means that many businesses that have made losses during the COVID-19 pandemic may be able to obtain a repayment of tax paid in that three-year period. This enhanced carry back applies to unincorporated businesses as well as limited companies and the details are set out in the latest Finance Bill.

For corporation tax purposes the loss-making accounting period must end between 1 April 2020 and 31 March 2022 to qualify for the three year carry back. For unincorporated businesses, the trading loss must be incurred in 2020/21 or 2021/22.

Please contact us if you need assistance in complying with the new rules.

NO CHANGE FOR “SMALL” EMPLOYERS

“Small” businesses will be outside of the new obligations and services supplied to such organisations will continue to be dealt with under the current IR35 rules with the worker and his or her personal service company effectively self-assessing whether the rules apply to that particular engagement.

The definition of “small” is based on the existing Companies Act 2006 definition. That is where the business satisfies 2 or more of the following features:

  • Annual turnover of £10.2million or less
  • Balance Sheet total of £5.1 million or less
  • 50 employees or less

UBER DRIVERS ARE WORKERS NOT SELF EMPLOYED

The Supreme Court has ruled that drivers for the ride hailing App Uber are workers not self-employed individuals and hence are entitled to holiday pay, pension rights and the right to be paid the national minimum wage. This case will have implications for other workers in the “gig” economy and may also have a bearing on the tax status of such workers. HMRC will certainly be taking an interest in the Supreme Court ruling. Note that tax law doesn’t necessarily follow employment law, but the boundaries are becoming increasingly blurred making it difficult to determine an individual’s employment status with absolute certainty.

For example, if Albion Ltd incurred trading losses of £200,000 in year ended 31 December 2020 having made profits of £50,000 in year ended 31 December 2019 it would normally only be possible to relieve £50,000 of the losses.

The new temporary carry back rules would permit losses to be set against trading profits made in the years ended 31 December 2018 and then 31 December 2017 as well. If profits in those years were £150,000 or more then the company would be entitled to a £38,000 corporation tax refund (19% of £200,000).

CONSULTATIONS ISSUED ON “TAX DAY” BY TREASURY

The Treasury normally issue a bundle of tax consultation documents on Budget Day. This year however they chose to delay the publication until 3 weeks after the Budget. We were expecting the consultation documents to include major changes to CGT and IHT, but it would appear that these have yet again been delayed. The Treasury have accepted a number of recommendations by the Office of Tax Simplification (OTS) on simplifying IHT reporting. From 1 January 2022 over 90 per cent of non-taxpaying estates each year will no longer have to complete IHT forms for deaths when probate is required. The government will also consider introducing a new digital system for IHT and probate reporting.

Another consultation is seeking views on modernising the tax administration system including changes to the payment dates for those outside PAYE. It would appear that HMRC are reconsidering a possible Pay as You Go system for the selfemployed that was originally consulted on in 2016.

The court determined that the drivers were in a position of subordination to Uber. The only way the worker could increase their earnings would be to work longer hours as Uber set the fare charged to the customer. This indicates that the driver is under the control of Uber, a key factor in determining employment status. However, it could be argued that there is limited Mutuality of Obligation as the drivers are able to refuse certain rides, although that may result in sanctions by Uber.

MORE DETAILS ON THE NEW SUPERDEDUCTION FOR EQUIPMENT

In the Budget on 3rd March the Chancellor announced a new 130% tax relief for expenditure on new plant and machinery incurred between 1 April 2021 and 31 March 2023. It turns out that this new tax relief is only available to limited companies and the latest Finance Bill reveals a nasty sting in the tail when the equipment is sold, as the clawback on disposal is potentially at the same 130% rate. So, if a new item of plant cost £100,000 the company would be able to deduct £130,000 in arriving at taxable profits thus saving £24,700 in corporation tax at 19%. However, if the plant was sold for £80,000 on 1 April 2023 130% of the proceeds would be clawed back and £104,000 added to taxable profit which could result in up to £26,000 corporation tax payable at the new 25% rate. The claw-back rate reduces on a time basis from 1 April 2023 onwards so it would be advisable to retain the asset long term.

REVIEW OF BUSINESS RATES

Among the documents published was an interim report on the government’s Fundamental Review of Business Rates, which sets out a summary of responses to last year’s call for evidence. The final report will be published in the Autumn. The government will also legislate to tighten tax rules for second homeowners meaning they can only register for business rates (and business rates relief) if their properties are genuine holiday lets. This will close a loophole that allowed some second homeowners to avoid paying council tax on that property, and some were even claiming coronavirus support grants for their “business”.

DIARY OF MAIN TAX EVENTS

APRIL/MAY 2021

Date What’s Due
1/04 Corporation tax payment for year to 30/6/20 (unless quarterly instalments apply)
6/04 2020/21 tax year ended on 5th. 2021/22 tax year begins.
New “off-payroll” working rules start.
19/04 PAYE & NIC deductions, and CIS return and tax, for month to 5/04/21 (due 22/04 if you pay electronically)
1/05 Corporation tax payment for year to 31/7/20 (unless quarterly instalments apply)
19/05 PAYE & NIC deductions, and CIS return and tax, for month to 5/05/21 (due 22/05 if you pay electronically)

For Tax Accounting Services in the UK, Contact Affinity Associates at +44-20-8903-2077

For Tax Accounting Services in the UK, Contact Affinity Associates at +44-20-8903-2077

At Affinity Associates, we specialize in offering highly personalized tax accounting services in London, Harrow, Wembley, and also across the United Kingdom to local individuals, start-ups, and small businesses. If you are a local business in the UK finding it hard to complete your annual tax returns due to your hectic business schedules or you want your business accounts to be examined and handled by the team of experienced tax accountants in the UK, then our tax accounting services are designed to help you save both – time and money.

While it is normal and possible for local businesses in the United Kingdom to complete and file their tax returns, but there are many start-ups and businesses that find it complicated and time-consuming. Especially when you are a start-up, tedious tasks are an unwelcome burden, and as they are not familiar with the UK tax laws and accounting procedures, they often end up paying more tax than is strictly required. Being a business owner in the UK, if you want to make sure that you are paying your fair share and no more, you can contact Affinity Associates for Small Business Tax Accounting Services in the UK. We have affordable tax accounting services packages for local individuals and businesses in the UK.

Tax Accountants for Individuals in the UK

  • Get your Personal Tax Returns done on time and without any hassle.
  • We offer competitive pricing and an efficient process to minimise paperwork and maximise your tax return.
  • We will work with you to simplify your accounting and tax effectively grows your family wealth.

Tax Accountants for Small and Medium Enterprise in the UK

  • We offer packages of fixed fee services, tailored to fit your business and lifestyle.
  • Rid yourself of the burden of Accounting and Bookkeeping and take control of your business.
  • Engage with your local Bookkeeper and Accounting professional to help drive your business.

Tax Accounting Services in the UK

With more than 30+ years of experience, Affinity Associates is one of the leading small business accounting and bookkeeping firms in the UK. For years, we have been helping young entrepreneurs, start-ups, and small businesses in London and across the UK in keeping their accounts in order and to complete their company tax returns before deadlines. Our tax accounting team in London is comprised of highly experienced professionals who are committed to providing our clients with the best accounting and bookkeeping service possible. Our range of packages for tax accounting and bookkeeping services in the UK can be tailored to meet your specific needs and because we are a privately-owned accounting firm in London.

To find out more about our small business tax accounting services in the UK, please complete and submit our contact form at https://www.affinityassociates.com. We will get back to you with all the necessary information you need related to tax accounting services in the UK.

Covid – 19 BOUNCE BACK LOAN SCHEME (BBLS)

On 4 May 2020, Chancellor Rishi Sunak launched yet again another scheme to support the small businesses during these catastrophic times. Under these schemes, Government will provide 100% guarantee to lenders, thus will ensure least paperwork to be provided to lenders. Lenders will provide loans up to 25% (between £2,000 and £50,000) of business turnover at an interest rate of 2.5%. However, this interest and any associated fees will be paid by the government for the first 12 months. To provide even further help, the Government has decided that there will be no repayments for the first 12 months. These loans will be made for a fixed term of 6 years.

How to Apply

Small business owners including self-employed can apply online to accredited lenders (List of accredited lenders) by filling out a simple online form, with only seven questions. All eligible companies will be subject to standard customer fraud, anti-money laundering (AML) and Know Your Customer (KYC) checks prior to any loan being made.

Who is Eligible

Your business must be able to selfdeclare to the lender that it:

  • has been impacted by the coronavirus (COVID-19) pandemic
  • was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
  • is engaged in trading or commercial activity in the UK and was established by 1 March 2020
  • is not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility
  • is not in bankruptcy or liquidation or undergoing debt restructuring at the time it submits its application for finance
  • derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)

What Affinity Associates says

Being an experienced and well-established practice of Chartered Accountants in London for many years, we provide robust advice to our clients as and when requested. BBLS will mostly support all high street business to obtain much needed cash injection during and after the pandemic has made its way out. Many small businesses and Self-employed have already taken benefits from Covid-19 Job Retention Scheme to support their employees, however, they are not able to do much for their own survival. Affinity Associates are committed to assist you in evaluating your needs and apply for maximum possible government support. Call now for consultation on 02089032077 or submit your request in contact us.

Covid – 19 BOUNCE BACK LOAN SCHEME (BBLS)Contact us

Covid- 19 updates

Covid- 19 updates

With CJRS and CBILS in full flow, most of the businesses have now availed benefits provided under these schemes. Most of the employers have now claimed their wages paid to furloughed employee up to 30 April 2020, while small and medium business have geared up and applied for business interruption loans.

Coronavirus Bounce Back Loan

The Bounce Back Loan scheme is intended to help small and medium-sized businesses to borrow between £2,000 and £50,000. However, the scheme is not available for those who have already claimed grant Coronavirus Business Interruption Loan Scheme. The scheme is supposed to launch on 04 May 2020 where the UK Government guarantees 100% loan with no fees and interest payable for first 12 months. Although the full scheme is not yet declared, government has confirmed the loan term to be 6 years with no repayment to be made within first 12 months.

We at Affinity Associates believe that this scheme will support even the smallest business that are not able to claim benefits under other schemes due to weak financials. In particular, Sole traders and Partnerships with turnover below VAT threshold might be benefited with this scheme. Although HMRC has not confirmed anything, but Government guarantee suggests benefit to reach many small businesses with weak financials.

Financial support

Considering various schemes, it become difficult for business or individual to find out support that they can get from Government. We at Affinity Associates have visualized the sectors that will be worst affected by this pandemic and have already published blogs that can help making all possible claims for Grants and loans. If you are Self-employed, please  visit https://www.affinityassociates.com/covid-19-possible-action-self-employed-can-take-subsist/ . IF you are into Restaurants/Pubs/Clubs Business, which is one of the worst hit area within economy. Please visit https://www.affinityassociates.com/covid-19-sustainability-measures-restaurants-pubs-clubs/ to see how you can make best out of benefits and grants from government.

You may also use a support finder developed by HMRC. Just follow the link https://www.gov.uk/business-coronavirus-support-finder

Affinity Associates have an experienced team of Chartered Certified Accountants that can assist you in further understanding claim processes. You can also contact us to learn more about how those relief packages can be used to benefit your business amid the COVID19 pandemic. To schedule a free consultation, you can call us at +44 20 8903 2077 or email us your queries at info@affinityassociates.com. We will be more than happy to help you in this tough time.

Coronavirus Bounce Back Loan and Financial supportContact us

Covid – 19, Possible action that a Self-employed can take to subsist

Covid – 19, Possible action that a Self-employed can take to subsist

Current pandemic has forced the entire country to stand still. Along with registered businesses, Sole traders and partnerships have suffered an equal hardship to generate revenues to survive. The UK Government has established a way to support self-employed individuals and are in the process of designing an application method.

The scheme will allow individuals to claim a taxable grant worth 80% of the trading profits during the period of three month till June 2020. However, the claim amount is restricted to £2,500 a month. HMRC has set process in a way that they will contact individuals by mid May 2020 if they are eligible for the scheme and will invite them to apply online. Once your application is successful, HMRC will evaluate the eligible amount and confirm that with you.

Considering the above, it will be really a tough time for Self-employed and survival will become a major issue. We at Affinity Associates has worked out possible steps an individual should take in order to overcome this.

Firstly, a claim for Universal Credit can be made while you wait for the grant, but any grant received will be treated as part of your self-employment income and may affect the amount of Universal Credit you get.

Secondly, we can follow three step process as below:

Below 3 step process will help in taking right decision –

  1. Evaluating the loss of turnover during and after close down period. This can be achieved by estimating the loss in turnover per day (otherwise earned) by comparing it to historical data. A forecast need to be prepared keeping in mind that future revenues once the lockdown is over will also be minimal.
  2. Identification to be made between fixed costs and variable costs that can be avoided or curtailed. This step will help you to calculate the liquidity required for the business to survive. i.e. you will know your breakeven point.
  3. Once both above ‘projections and liquidity requirement are calculated, next step will be taking advantage of government funding and support. There are various schemes and grants offered by the UK Government which are as below –

Coronavirus Job Retention Scheme – This scheme will help you to cover major fixed cost (Salaries) that any business will have. If your business is registered for PAYE scheme, then you will be eligible to claim this benefit.  80% of the wages (up to £2,500) along with 80% of Employer’s NI and pension costs will be reimbursed by HMRC for March, April and May 2020. Employers will need to pay salaries for all three months and then by end of April 2020 HMRC will update on the process to obtain this relief.

VAT payments (if registered) due between April 2020 and June 2020 are now deferred until March 2021. Thus, liability can be settled anytime up to end of March 2021 and there will be no interest payable on due amounts.

Interim payment for tax year 05/04/2021 can be differed. Further if there are any liabilities pending to pay, we can request HMRC to defer those payments too.

Business rates relief – Your local council will forgo the rates for financial year 20/21. No application to be made.

an application can be made for Coronavirus Business Interruption Loan Scheme. This scheme helps small and medium-sized businesses affected by coronavirus (COVID-19) to access finance of up to £5 millionThe government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This means smaller businesses will benefit from no upfront costs and lower initial repayments. To check your eligibility and apply for loan please click here

Small Business Grants Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF) – Government has further announced that Local authorities will provide grants to business based on their rateable value. Under the Small Business Grant Fund (SBGF) all eligible businesses in England in receipt of either Small Business Rates Relief (SBRR) or Rural Rates Relief (RRR) in the business rates system will be eligible for a payment of £10,000. Further details can be found  here.

Affinity Associates Limited is committed to provide advice and support that is required in sustaining your business. We provide impeccable service in evaluating businesses and also preparation of management information (including projections). Call now for consultation on 02089032077 or submit your request in contact us.

Covid – 19, Possible action that a Self-employed can take to subsistContact us

Covid – 19 Sustainability measures for Restaurants, Pubs and Clubs

Covid – 19 Sustainability measures for Restaurants, Pubs and Clubs

The Foreign Secretary Dominic Raab on Monday, 13 April quoted that “the UK has not yet reached the peak of the virus”. He further indicated that countrywide lockdown may be extended by 3 weeks more for which decision will be taken by end of this week. Further lockdown will question the survival of businesses within leisure industry. It has become imperative for owners and managers of these businesses to evaluate the sustainability. We at Affinity Associates have prepared a small list of measures that can be followed to survive during this pandemic.

Below 3 step process will help in taking right decision –

  1. Evaluating the loss of turnover during and after close down period. This can be achieved by estimating the loss in turnover per day (otherwise earned) by comparing it to historical data. A forecast need to be prepared keeping in mind that future revenues once the lockdown is over will also be minimal.
  2. Identification to be made between fixed costs and variable costs that can be avoided or curtailed. This step will help you to calculate the liquidity required for the business to survive. i.e. you will know your breakeven point.
  3. Once both above ‘projections and liquidity requirement is calculated, next step will be take advantage of government funding and support. There are various schemes and grants offered by the UK Government which are as below –

Coronavirus Job Retention Scheme – This scheme will help you to cover major fixed cost that any business will have. 80% of the wages (up to £2,500) along with 80% of Employer’s NI  and pension costs will be reimbursed by  HMRC for March, April and May 2020. Employers will need to pay salaries for all three months and then by end of April 2020 HMRC will update on process to obtain this relief.

Business rates relief – Your local council will forgo the rates for financial year 20/21. No application to be made.

VAT payments due between April 2020 and June 2020 are now deferred until March 2021. Thus liability can be settled anytime up to end of  March 2021 and there will be no interest payable on due amounts.

Small Business Grants Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF) – Government has further announced that Local authorities will provide grants to business based on their rateable value.  Eligible businesses with a property that has a rateable value of up to and including £15,000 will receive a grant of £10,000 and with a property that has a rateable value of over £15,000 and less than £51,000 will receive a grant of £25,000.

Further details can be found  here.

Further an application can be made for Coronavirus Business Interruption Loan Scheme. This scheme helps small and medium-sized businesses affected by coronavirus (COVID-19) to access finance of up to £5 millionThe government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees. This means smaller businesses will benefit from no upfront costs and lower initial repayments. To check your eligibility and apply for loan please click here

Affinity Associates Limited is committed to provide advice and support that is required in sustaining your business. We provide impeccable service in evaluating business and preparing management information (including projections). Call now for consultation on 02089032077 or submit your request in contact us.

Covid – 19 Sustainability measures for Restaurants, Pubs and ClubsContact us

Professional Small Business Tax Accounting Services in London, UK

Professional Small Business Tax Accounting Services in London, UK

Unless you are an accounting firm, there are higher chances that you might not have adequate knowledge about accounting and bookkeeping. That’s perfectly fine, as your expertise lies elsewhere. But the fact that you might be not aware is that accurate bookkeeping and accounting is extremely crucial for maintaining a financially sound business.

However, most small business owners across the United Kingdom are too busy running a business to spend countless hours educating themselves on the ins and outs of accounting. That’s where Affinity Associates of London comes in. Being a reputable small business accounting firm, we offer small business accounting and bookkeeping services to businesses throughout London, Harrow, and Wembley. When you hire small business tax accountants from our team in London, you’ll be able to invest your valuable time and energy on your own business activities knowing that your company’s finances are in the hand of experienced professionals.

At Affinity Associates, our certified accountants have been in the small business accounting services for many years. With that amount of experience and knowledge, we are enormously savvy at a full spectrum of small business accounting services. You can definitely hire our small business tax accountants in London to provide you with sharp attention to detail, efficient work, and personalized accounting service. Additionally, our comprehensive approach to accounting for small and medium-sized businesses means you get the best value for your investment.

When you hire the small business tax accountants from Affinity Associates, you can trust us to perform the following duties either monthly or quarterly:

  • Tax reduction planning
  • Cloud accounting and bookkeeping
  • Financial statement preparation
  • Budgets
  • Business plan development
  • Cash flow management
  • Payroll processing services
  • Succession planning
  • Retirement planning for you and your employees
  • Business loan assistance
  • College savings planning
  • QuickBooks set up and training
  • Compilations and financial reviews

In the stance of fierce competition around your small business in London, our small business accounting services can offer you the competitive edge. You can benefit from having highly qualified tax accountants in London to take care of your business finances. Affinity Associates work with business owners in a wide range of industries to help them stay on top of their accounting, tax and general business planning functions.

When you decide to work with Affinity Associates, you are getting much more than an accounting firm. You are gaining a reliable partner who will understand your business, evaluate your requirements, and offer the kind of advice that will help you succeed even when you face stiff competition. Call us at +44-020-8903-2077 to learn how we can help you.

Covid -19; Extended Support by UK Government

Covid -19; Extended Support by UK Government

Considering the unprecedented worldwide epidemic, UK government promised wide variety of benefits for their citizens and Businesses. We at Affinity Associates, are committed to serve our clients within this struggled time. Considering that we have done research at our end to provide you the maximum information that is available to claim benefits.

A package of measures were announced and taken to support businesses, below are some;

  • Coronavirus Job Retention Scheme

Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. These are described as ‘furloughed workers’. The scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary.

  • Deferring VAT and Income Tax payments

For VAT, payments are deferred for the next 3 months (from 20 March 2020 until 30 June 2020) and Taxpayers will be given until the end of the 2020 to 2021 tax year to pay any liabilities that have accumulated during the deferral period. However, VAT returns are required to be submitted on time through MTD. Thus, taxpayers with Direct Debit Setup are advised to instruct their banks to cancel it if struggling to make payments.

For Income Tax Self-Assessment, payments due on the 31 July 2020 may be deferred until 31 January 2021.

  • The Coronavirus Business Interruption Loan Scheme

Under this scheme, small and medium sized businesses will have access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to six years. Further, Government will pay the interest for first 12 months and any other fees levied by lender at initial stage. To be eligible for the scheme, your business turnover should be below £45 million and your business meets the other British Business Bank eligibility criteria

  • Time to pay

If you are self employed or in Business and facing financial distress with outstanding tax liabilities, then HMRC may arrange a payment plan to support you in these times. The arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. You need to contact HMRC helpline for advice on 0800 0159 559

  • 3-month extension period to file accounts at Companies House

Businesses will be given an additional 3 months to file accounts with Companies House to help companies avoid penalties as they deal with the impact of COVID-19.

  • Self-employment Income Support Scheme

If you are self-employed or a member of LLP, and suffered due to loss of trade you will be able to get benefit from this scheme. An application cannot be made for the scheme as HMRC will contact you if you are eligible for the scheme and invite you to apply online. The Amount of grant will be calculated based on an average total trading profits of last three years (2018/19, 2017/18 and 2016/17) declared as per your Self Assessment Tax returns. However, the maximum grant available is £2,500 per month for three months. Basic criteria to qualify is that you should have traded in last year, should be trading in current year and should verify your intent to trade in forthcoming year. Further this grant is restricted to a person having total trading income less than £50,000 per year.

At Affinity Associates, we have a team of certified and experienced tax accountants in London, who are hardworking and well-versed with the tax compliances in the UK and are happy to support you in these difficult times. For further information on any matters about benefits, please contact us at info@affinityassociates.com

About Covid -19; Extended Support by UK GovernmentClick Here

COVID 19 – How HMRC is Supporting Businesses?

COVID 19 – How HMRC is Supporting Businesses?

In the Budget (11 March 2020) the Chancellor announced a package of measures to provide support for public services, individuals and businesses to ensure the impact of COVID-19 is minimised. These measures will really help small Business and Individuals working for them to survive through tough times. Below are some highlights of benefits that small businesses can claim –

  • 6 months interest free loan to cover up to 80% of losses from British Business Bank under Coronavirus Business Interruption Loan Scheme
  • 14 days (starting from 1st day off work) Statutory Sick Pay for all employees
  • Pay arrangement programme with dedicated support line (0800 0159 559) to help financially distressed tax payers (Business and Self-employed)
  • £10,000 cash grant for small business that are eligible for small business rate relief / Rural rate relief
  • Business rate holiday for retail, hospitality and leisure businesses for tax year 2020-21
  • Additionally, £25,000 grant for retail, hospitality and leisure businesses operating from smaller premises

Further the UK government has decided to delay rollout of IR35 tax reforms until 06 April 2021.

About Covid -19; Extended Support by UK GovernmentClick Here