Tax Returns & COVID-19 Update
As we move into another week of lockdown, I hope that you are all safe and well.
The Chancellor announced this week on an additional support measure for small businesses so we are providing some information on that below, along with an update on a number of other items, COVID-19 and more general.
Chancellor unveils ‘bounce back’ micro-loans scheme
Yesterday afternoon, Chancellor Sunak announced the Government was implementing a new micro-loan scheme for UK businesses. Businesses will be able to apply for new ‘Bounce Back’ loans for up to 25% of their turnover, up to a maximum of £50,000 – with the Government paying the interest for the first 12 months. The loans will be 100% backed by the Government and will be available from 9am next Monday (4th May). The Chancellor has insisted that the process for getting this loan would be quick and simple: “There will be no forward-looking tests of business viability and no complex eligibility criteria… There will just be a simple and quick standard form for businesses to fill in.”
Artema welcome this (let’s hope pain free process) announcement made by the government as many businesses are slowly running out of cash. Please remember that unlike various grants, the loan will need to be repaid and further borrowings may not suit all businesses.
Many of you eligible for the Local Authority grant funding will have received this. If you have still not applied you should contact your local authority and send in the application form.
If you have applied over two weeks ago we suggest that you send a polite email to the relevant council asking for an update on your application.
This fund will be available for start-ups that can match a minimum of £125,000 from investors. This will be paid as convertible loans and we are expecting further announcement from the government regarding this and the effect it has on EIS / SEIS this week.
Postponement of Corporation Tax and PAYE payments
There is a useful HMRC webchat facility for those who wish to agree the postponement of Corporation Tax and/or PAYE payments in the short term. Please follow this link – HMRC
As a reminder, VAT payments due up to 30 June 2020 have been deferred until 31 March 2021 and there is no need to agree this with HMRC. Do cancel your direct debit if you have one set up, to make sure no payments are taken automatically.
Tax return – 6 April 2019 to 5 April 2020
Moving on to “usual business” . . .
We have now started to process tax returns for the above year so please get in touch with the team so we can plan together how you can send us the relevant paperwork.
What to bring in?
Here is a list of things we need from you to complete your tax return:
- Details of any bank interest received including foreign income and income from trusts.
- Your P45 / P60 and P11d (income from employment where applicable).
- Any private and state pension details.
- Any rental income from property you receive.
- Details on Gift Aid, allowances, capital gains and student loan if applicable.
- If you have a limited company or partnership please also provide the information for the business so that we can complete the accounts. This will be needed for your personal tax return.
Please get in touch with the office if you have any questions by email or telephone (01425 470 044). We will do our best to nag you about your tax return but we can’t be held responsible if we don’t receive your paperwork on time.
Receipt Bank – save time managing your paperwork and send us your tax return information remotely.
The move to cloud-based accounting software has helped to automate some of the time consuming manual bookkeeping processes for many businesses.
If anything – it will save you the trip down to our offices during lockdown. Let us know if you wish to embrace a new way to capture your receipts and paperwork in an efficient way.
All data is stored securely on the cloud so you don’t have to keep a physical copy of your paperwork.
Please let us know if you need any further clarification on any of the above.