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Helping clients to maximise cash flow

Coronavirus has led to an increased need for cash in hand. The government has deferred the second payment on account due in July 2020, but should self-employed clients automatically do this, and what other options should you be looking at?EndFragment EndFragment EndFragment CSS END CSS FavIcon JS INCLUDES END JS INCLUDES EndFragment StartFragment EndFragment StartFragment EndFragment StartFragment StartFragment Payment deferral The coronavirus crisis has seen unparalleled government support in terms of grants and loans, but there are also a number of tax easements, something also without precedent. The second payment on account for 2019/20 can be automatically deferred from 31 July 2020

An update regarding COVID-19

(credit to Advance Tapes International for images) Prime Minister Boris Johnson has announced a further easing of lockdown restrictions, including allowing some businesses to move to 1 metre social distancing. This has provided us with an opportunity to assess what we do and whether we should change any of the processes that we currently have in place. Our assessment concluded that we do not currently plan to make any changes at the present time. In fact, we believe that we now need to be more vigilant. The easing of the lockdown increases the risk of transmission as we all begin to meet more people and visit settings with 1 metre social distancing rather than 2 metre social distancing. This

Flexible furloughing details released

Late on Friday evening (12 June) details were released concerning part-time working and much more besides. What do you need to know? Flexibility: From 1 July, you can bring back to work employees who have been furloughed before this date for at least three weeks for any amount of time and any shift pattern, while still being able to claim a grant for any normal hours not worked. In other words, you have full flexibility over which hours furloughed staff work. If you flexibly furlough employees, you’ll need to make sure that you agree this with your employee (or reach collective agreement with a trade union) and keep a new written agreement that confirms the new furlough arrangement. You’ll a

End of a Business and Termination Payments

META Start Top Articles Row You’re closing your company as it’s barely covering its costs. You’ve been told that the company can pay you a tax-free termination payment. Is this right and how will it affect the company’s tax position? What’s a termination payment worth? You might have read or been told that the most tax-efficient method of getting the money out of your company when it closes down is to wind it up and take its cash and other assets. That way the maximum rate of tax on what you receive is 10%, assuming that capital gains tax (CGT) entrepreneurs’ relief (ER) applies. (Note that ER is now called business asset disposal relief; BADR). This is true but it overlooks what you might b

New Guidance on Salary Deductions

META Start Top Articles Row There’s new guidance about deductions from pay for employees furloughed under the Coronavirus Job Retention Scheme (CJRS). What’s the full story? Grant-funded pay Since the Coronavirus Job Retention Scheme (CJRS) began HMRC has fielded thousands of questions about whether deductions from salary are allowed to be made from scheme payments. HMRC has now amended its guidance, but is it any clearer? Is that clear? Our view is that HMRC’s apparent clarification could be better. It says “Your employer must pay you all the grant they receive for your gross pay in the form of money. Your employer cannot enter into any transaction with you which reduces the amount you r

Exemption for homeworking expenses

The government has announced a new tax exemption for employees who work from home and need to buy equipment to do their job. What’s the full story? Homeworkers: The government has drafted new rules in a move to help employees who are working from home as a result of the coronavirus pandemic. HMRC has created a temporary exemption so that if an employee buys equipment, e.g. a PC, so they can do their job at home their employer can reimburse them the cost tax and NI free. Employees would be entitled to claim tax relief anyway but NI (employers’ and employees’) may still have applied to the reimbursed amount. The new exemption ensures neither tax nor NI applies. Conditions: To qualify for the e

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