Self-employment Income Support Scheme (SEISS)

An initial grant was made available to support self-employed individuals or partnerships, worth 80% of their profits up to a maximum of £2,500 per month. Like the JRS, the scheme was open initially for a period of 3 months. A further grant will now be open for claims in mid-August although it will be worth 70% of profits rather than 80% up to a maximum of £6,570 for the 3 months. Profits will be calculated by reference to your profits in the last 3 years of trading as declared on your tax returns. If you have been trading for less than 3 years then the shorter period will be used as long as you have at least submitted a tax return for 2018/19 showing your self-employed income.

 You will only be eligible if you have lost trading profits due to Covid-19 but you do not have to have stopped work completely. You will not be eligible if your average income exceeds £50,000 per annum or if self-employment is not your main source of income (ie >50%). Claims can be made from 17 August.

Click on the link below or paste the address into your browser, it will take you straight to the relevant page on the gov.uk website.

https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme?utm_source=0c40359d-5a02-4692-86d6-3651cae8807d&utm_medium=email&utm_campaign=govuk-notifications&utm_content=daily#claim

Capital Gains on Residential Property

Sales of residential property must now be reported to HMRC, and any tax paid, within 30 days of completion of the contract. No return is required where CGT is not chargeable, for example where the property is exempt as a main residence or where the gain is less than the annual exemption. The return is made online through a special portal and penalties for late reporting started in August. Please get in touch if you have made, or are about to make, any disposals which could fall foul of these new regulations.

Job Retention Scheme (JRS)

The new version of the JRS came into effect on 1 July. The revised scheme allows employers to furlough staff on a part-time basis as long as they had been furloughed for a full 3 week period under the original scheme by 30 June. Thereafter any pattern of work can be agreed with the employee. The employer pays for the working time as usual and the remainder of their normal hours are covered under the furlough scheme. As before, the employee must be paid at least 80% of normal pay for furlough periods.

From August the employer will have to pay national insurance and pension costs related to periods of furlough and from September only 70% of salary will be refunded dropping to 60% in October. The scheme will end on 31 October. Do remember that employees retain all their usual employment rights during furlough including accruing holiday entitlement. They can be required to take holidays while on furlough although they would need to be paid at their usual holiday rate not just 80%.

Welcome

 We have decided to venture into the world of blogging to try to deliver a faster and more comprehensive source of useful information for our clients. Our website will still be there to provide a stable platform for technical information which doesn't change too quickly, contact details, and legal notices. However, if we have learned nothing else from the pandemic, circumstances can change very quickly and we all need to be ready to adapt at very short notice. 

So, a blog where we can add technical information, useful tips, and anything else that comes to mind just as easily as writing a letter (or so they tell me). We'll have to wait and see.