July 29. 2020
There is no doubting that the last few months have been extremely
tough, and as we move through the restart and recovery there will be more changes
to come. Hopefully, you are back in the passenger seat, raring to go and let’s
hope we move through the rest of 2020 in a more positive way.
The lockdown saw the driver training industry come to a halt and home-schooling
became a reality for many, as did the growth in Tik Tok challenges and baking
banana bread! Many took to keeping themselves busy and it was also great to
hear about driving instructors putting their skills to great use, I mean there
is no one better than a driving instructor to take on a driving role for a supermarket,
courier or the NHS.
With the mix of getting back to your day job and making
lessons as safe as possible, we know you will have a lot to think about
now. We wanted to make sure you have not missed any support that is available
to you, especially as things are ever-changing. We do know a lot of
self-employed fell through the cracks of the Government support and the mini
Budget on the 8th July was the last chance saloon for some freelance
sectors. There has been a lot to take in over recent months so here are a few
areas to recap:
SEISS SECOND GRANT
- Based on 70% of your trading profits
- Your business must have been adversely affected from 14th July
- Applications for the second and final grant are due to go live on
the 17th August
- If parents and those who adopted, took time out of trading to care
for children within the first 12 months of birth or 12 months of an adoption
placement they will now be able to use either their 2017/2018 or both 2016/2017
and 2017/2018 self-assessments for the basis of their SEISS eligibility. All
other eligibility criteria remain the same.
DEFER TAX PAYMENTS
- HMRC automatically deferred the July payments that were due
- You must pay by the 31st Jan 2021 if you deferred your July tax
payment
- Remember your tax bill for the 2019/2020 tax year is also due 31st
Jan 2021
BOUNCE BACK LOAN
- Provides access to borrowing that is between £2,000 and up to 25%
of your turnover (up to a maximum of £50,000).
- No repayments for 12 months
- Make sure you have your 2019/2020 tax return done so the latest
figures are included
- Always seek financial advice prior to borrowing
TAX TIPS
You might not have done your 19/20 tax return just yet (don’t
worry, you have until the 31st Jan 21 to file online) but we wanted to
highlight a few things ahead of your 20/21 return and to help you give your
business that self-care that it needs.
Making Tax Digital (MTD) is still on
the horizon, MTD is HMRCs plan to mandate digital record keeping. COVID-19 and
the support provided by HMRC has been priority over recent months, but we are
monitoring Making Tax Digital updates. Small changes now will mean it is an
easier transition when the time comes. If you are not used to keeping digital
records or operating through software it is best to get comfortable ahead of
the change. A bookkeeping routine is important, yes you will likely prefer to
watch the latest Netflix release, but it will help you to understand your
businesses cashflow. It is one of the most important financial management tasks
so that you know the income and outgoings of your business. This way you know
if you have any cash reserves, vitally important when you see a period of
reduced income. The best way to put it:
Both SEISS grants are taxable and need
to be recorded as income on the 20/21 tax return, make sure you record the
amounts you received on the dates you received them.
Do not forget to include all PPE
expenses, that relate to your business, in your tax returns. You are unlikely
to have ever purchased such items for your business before, but the costs of
such items will quickly add up.
We always advise clients to have
separate business and personal bank accounts, it will make your life easier in
the long run. Especially when looking for transactions or if an HMRC
investigation ever pops up. You might also want another account to set aside
your savings for your tax liabilities, out of sight and out of mind hopefully
means it is easier to keep that pot of funds available.
There is no one size fits all approach
to this recovery, do what is best for you and your business. Reach out for help
when you need it, stay safe, be aware of scams and most importantly try not to
panic.
May 14. 2020
The online service is now available for the SEISS. You will need to apply through your Government Gateway ID. HMRC have said if you cannot claim online, there will be an alternative way to claim, as yet we don’t know what this will be. If you are eligible, HMRC will give you a date from which you can complete your claim. We would advise you to use the Government Gateway to do this, using this online service is beneficial to access other tools such as pension forecasts and National Insurance contributions
As soon as you complete your claim you will be advised if it has been approved and you should receive your payment within 6 working days.
If you haven’t already checked your eligibility you can do so via this link https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
To complete your claim, you will need the following information:
- Self-Assessment UTR
- National Insurance number
- Government Gateway user ID and password - if you do not have a user ID, you can create one when you check your eligibility online via the above link
- bank account number and sort code you want the grant to be paid into
You will also have to confirm to HMRC that your business has been adversely affected by coronavirus.
As always be vigilant, if you receive texts, calls or emails claiming to be from HMRC, offering financial help or a tax refund and asking you to click on a link or to give personal information, it is a scam. You should email it to phishing@hmrc.gov.uk and then delete it.
This process and the guidelines surrounding it are new and constantly evolving, we will continue to share relevant updates with you as information is released.
March 27. 2020
The Chancellor has announced support for self-employed individuals. The main points to note are:
- A taxable grant will be available equal to 80% of your annual profit averaged over three years, up to a maximum of £2,500 per month
- To be able to claim this grant your annual profits must be below £50,000
- The majority of your income must come from self-employment
- You must have been trading before 5th April 2019 and filed at least 1 annual tax return
- Your 2018/19 Tax Return, if not already submitted (normal submission deadline 31st January 2020) must be submitted within four weeks from today
- HMRC hope to have the facility in place by June 2020
- HMRC will contact all those eligible to make a claim directly
- The claims will be back dated from the beginning of the lock-down and paid in a single lump sum
HMRC are aiming to contact all eligible individuals by mid-May and process payments by early June. HMRC will confirm the amount that you are due to receive. HMRC have confirmed that you will need to have a Government Gateway ID to apply for the
grant. If you do not already have one, you can register when HMRC contact you
regarding your grant application. If you would prefer to register now, follow this
link https://www.gov.uk/personal-tax-account
In the meantime in addition to making a claim for the grant, you can claim Universal Credit, continue to work self-employed or seek employment in a PAYE role.
If you need any support during this difficult time do reach out to the support that is out there;
Your GP
Stay safe!
March 13. 2020
The Chancellor of the
Exchequer presented his Budget on the 11th March 2020. Said to be a ‘people’s
budget for the people’s government’ there was a key topic throughout, COVID–19.
Mr Sunak stated the NHS will get ‘whatever it needs, whatever the cost’.
COVID – 19
The Budget
announcements bring numerous temporary measures which are set to assist with
the current worldwide pandemic. The measures have been put in place to help
support those affected by COVID-19, whether that be as an individual or a
business.
The
chancellor also commented on those advised to self-isolate, even if they do not
show symptoms, they are to receive statutory sick pay (SSP) if eligible.
Those who are not
eligible for SSP, such as self-employed individuals, will see Employment
Support Allowance (ESA) paid quicker with the qualifying number of sick days
reduced from 8 to 1. This means that once you have got your sick note
from 111 you can then contact the Department of Work & Pensions and begin
the process of claiming ESA. Click here to find out more about ESA.
ESA is paid to those
who are too sick to work, provided they meet certain conditions. It is worth
£73.10 a week, or £57.90 for the under-25s.
If you do find
yourself in a position where you need to access such benefits, we would always
advise taking the medical advice from 111 and contacting the Department for
Work & Pensions who can advise you fully on the processes you need to
follow.
A 100% reduction in
Business Rates for Small business’s was also introduced in the Budget, more
interesting for a lot of very small business was a £3,000 grant which appears
to be aimed at all small businesses. There is very little guidance available on
this at the moment, we will follow up on this once information on who can apply
and how to apply has been issued.
Finally, HMRC have
been asked to assist taxpayers with payments to them, to that end a new team to
deal with Time to Pay arrangements for business’s affected by Coronavirus has
been set up. If you find your capital reserves are running low and you are
worried about paying your next bill, we strongly recommend you call them on 0800
015 9559.
As Mr Sunak stated,
‘the current situation is temporary’, ‘life will return to normal’. However,
‘for a period, it is going to be tough’.
Will we see more
money in our pockets?
The honest answer,
probably not but the following are factors that provide an element of
positivity.
- From the 1st April the National Insurance threshold is increasing from
£8,632 to £9,500, meaning you can earn more profit before paying Class 4
National Insurance.
- Fuel Duty
will be frozen for the 10th
consecutive year and there will also be a freeze in duty rates for beer,
ciders and spirts.
- Another tax
to be cut is VAT on digital books, newspapers and magazines.
- The 5% rate
of VAT on sanitary products - referred to as the "tampon tax" -
will be abolished from January.
- People
can put a lot more into tax-free savings for children. The allowance for
Junior ISA’s (Individual Savings Accounts) and Child Trust Funds will be
increased from £4,368 to £9,000 in April. However, the typical amount
saved is only about £1,000.
The
personal allowance will remain at £12,500 and there will be no changes to the
tax rates. Additionally, for the self-employed there will be a slight increase
in Class 2 payments, from £3.00 per week to £3.05.
Once
thing we won’t need to brace ourselves for is the mammoth number of potholes in
our roads. A massive £2.5bn is set to be invested within our local roads. Let’s
see how that one pans out!
So,
from supporting businesses, highlighting green priorities and supporting those
in need it was a budget delivered in challenging times and one that saw some substantial
spending commitments.
February 3. 2020
FBTC Accountancy Services are thrilled to have won
the Feefo Platinum Trusted Service award. This is an independent seal of
excellence that recognises businesses for delivering exceptional experiences,
as rated by real customers. Feefo have given the Platinum Trusted Service award
to FBTC as they have achieved Gold standard for three consecutive years.
Alan Gott, FBTC Manager, commented: ‘We greatly appreciate clients taking the
time to leave us feedback. Here at FBTC we take pride in supporting clients to
the best of our ability’.
Congratulating FBTC on winning this year’s award, Steph Heasman,
Director of Customer Success at Feefo, commented: “The Trusted Service
award has always been about recognising companies that go way beyond the norm
in customer experience and generate great feedback from happy
customers.
Well done team!
January 21. 2020
FBTC are excited to share another year’s analysis on the Driver Training
Industry. The report focuses on the key areas of Driving Instructors’ workload,
earnings and levels of job satisfaction. A continued trend from last year is the
presence of a smarter working week and high levels of job satisfaction.
The overall findings of this year’s survey show
another positive year;