HMRC had already allowed people to defer payment of their 31st July 2020 second payment on account until 31st January 2021.Now, that is being extended through a new time to pay arrangement that will enable people to set up their own online payment plan to cover any or all of the below liabilities:1) The deferred 31st July 2020 payment on account2) The balancing payment due 31st January 20213) The … [Read more...]
The Winter Economy Plan update
The chancellor has announced the winter economy plan, which provides some additional support to individuals and the self-employed:SEISS Grant ExtensionThere are to be two further payments under the Self-Employed Income Support Scheme.These payments are to cover the period from November 2020 to April 2021.Payments are to be made in two lump-sum amounts, each one to cover a period of three … [Read more...]
Countdown to HMRC Digital Income Tax in 2023
HMRC has recently announced the proposed timescale to introduce the next stage of Making Tax Digital (MTD) for Income Tax.Who does it affectPreviously MTD applied to those that were VAT registered - from 2023 it will expand to include an additional two groups of people:1) Those with rental income above £10,000 per year. This is per person, so if there is a joint rental property and the … [Read more...]
WFH – Homeworking Expenses for Employees
With many employees currently working from home, there have been two welcome concessions for HMRC regarding the tax treatment of expenses.Personal purchases of equipment to be used for work purposes.Tax relief on homeworking expenses.Personal purchases of equipmentUsually, the purchase of equipment such as monitors, printers, desks, etc personally by an employee and later reimbursed by the … [Read more...]
Remember that SEISS grants are taxable income
This week should see the first payments from the Self Employed Income Support Scheme (SEISS) being made to claimant's bank accounts.However, it is important to remember that this grant is classed as taxable income and will need to be accounted for.How much to set aside?Assuming that you are a basic rate taxpayer, there are two amounts that you may be liable for:1) Income Tax - charged at … [Read more...]