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Newsletter 27/11/2020

Hello and a happy new tier!

I know I have clients in both tier 2 and 3 so whatever tier you are moving into, I wish you the best for you and your business. I have seen so many of you adapt your businesses to ensure you can keep trading. Your resilience is commendable. What ever the next few months has in store for you, hang in there, you’ve got this!


This newsletter has quite a lot to cover following various announcements.


Self Employed Income Support Scheme Grant No.3

What period does the grant cover?

  • November to January 2021 inclusive.

How is the grant calculated?

  • It is 80% of your average monthly trading profits for the three tax years ended 5th April 2019, covering a 3 month period.
  • The maximum claim is restricted to £7,500.

What is the eligibility criteria for the 3rd Grant?

  • You must have been eligible for the first and second SEISS claims. You can still be eligible even if you did not make a claim.
  • You must have traded in the 2018/19 and 2019/20 tax years.
  • You must now be trading but are impacted by reduced demand due to the Covid-19 pandemic.
Or
  • You have been trading but are temporarily unable to do so due to Covid-19 pandemic.
  • You intend to continue to trade.
  • You reasonably believe that there will be a significant reduction in your trading profit covering the period 1st November to 29th January 2021.
  • When deciding whether the reduction is significant, you need to consider your wider business circumstances.

What is meant by ’reasonably believe’ and ‘significant reduction’?

  • You have reason to believe that you will suffer a significant reduction in trading profit due to reduced business activity, capacity or demand or an inability to trade due to Covid-19 restrictions covering the 3 month period to the end of January 2021.

What is not deemed to be a significant reduction?

  • A reduction in profit due solely due to an increase in costs such as buying masks, cleaning supplies, screens and other PPE equipment will not be sufficient for a claim to be made.
  • If you have gone on holiday and have had to self-isolate for 14 days and this is the only thing to impact your business.

HMRC examples of what is and what is not allowable can be found on the link below:

How your trading conditions affect your eligibility for the Self-Employment Income Support Scheme - GOV.UK (www.gov.uk)

When can the SEISS claim be made?

  • The Gov.UK online portal will open on 30th November 2020.
  • You will have until 29th January 2021 to make a claim.
  • HMRC state that you should only make your claim when you have a reasonable belief that your trading profits are going to be significantly reduced.

What will you need to make the claim?

  • Your Unique Taxpayers Reference number.
  • Your National Insurance number.
  • Government Gateway ID and password.
  • Bank account and sort code.

What records should be kept

  • Keep a copy of the amount claimed.
  • The claim reference number.
  • Evidence that at the time of making the claim you had reason to believe that the trading profits were going to be significantly reduced.
  • Evidence to show the impact and reduction in their business activity across the period from November to January 2021 inclusive.

Important to note

  • The grant will need to be reflected within your self-employed accounts and will be liable to tax and national insurance.
  • The eligibility criteria is tighter than in respect of the first two SEISS claims and so you may want talk to us before you make the claim.
  • Keeping a copy of evidence backing up the reasons for your claim will help should HMRC look to review your claim in the future.



National Minimum Wage (NMW) and National Living Wage (NLW) 2021/22


Rishi has announced the NMW and NLW rates for the 2021/21 tax year along with the accommodation offset . They are:

 


The ‘accommodation offset’ is where the employer provides free accommodation either directly or through a third party to the worker and an element of that ‘deemed cost’ to the employer goes towards counting as part of the minimum wage.



2021/22 allowances and rate bands

Although an exact figure has not been stated, Rishi has announced that, in respect of the 2021/22 tax year, the personal allowance and the higher rate tax threshold will increase in line with the September Consumer Price Index (CPI). Please note that Scotland and Wales can, of course, set their own higher rate tax threshold.

The September CPI will be used to set all national insurance limits and the rates of Class 2 and Class 3 national insurance.




Coronavirus Job Retention Scheme (CJRS) claims

  • Please remember that 30th November is the last day to be able to make a CJRS claim for periods up to and including 31st October 2020. Therefore, if you would like TWC to make a claim for 31/10/20 then we need you info ASAP.


As always, should you have any questions or would like to discuss your personal circumstances then please do not hesitate to get in touch.


Take good care,


Aaron


info@togetherwecount.co.uk
www.togetherwecount.co.uk
https://g.page/Together-We-Count-Limited?gm

01273 569088
0114 400 0119



 


 

 

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