Moore Accountancy Update

NEW TAX YEAR AND BIRTHDAY GREETINGS

April brings with it a new tax year and the "fun" of changes to payroll guidance as well as thoughts of self assessment tax return planning.

This April is a special one for Moore Accountancy, being our 10 year anniversary.

We had thought about some celebrations, but they have been sidelined for now. Hopefully, we can give it some thought again when we progress from the current social isolation.

The team continues to work remotely, albeit around family, pets and working partners - so don't be surprised if you receive an email outside of conventional working hours!

Finally, we cannot know how long this Pandemic will last and what the effects will be on business
generally. What we can do is stay focussed and committed to rebuilding our businesses.

If you have missed any of our previous newsletters, then our website has a backlog of them here.

TAX YEAR 2020/21

National Minimum Wage increases
These have increased effective from April across all levels.
Please see the link here for the new rates, which have also been communicated by Lucy to our payroll clients:
https://www.gov.uk/national-minimum-wage-rates

Self Employed NIC threshold rise
The level at which self employed workers pay Class 4 NIC on profits has increased to £9,500 (2019/20 £8,632).
9% NIC is payable on profits between £9,500 and £50,000, with the rate remaining at 2% above this.
Class 2 NIC is payable at £3.05pw (was £3.00pw) when annual profits exceed £6,475.

Capital Gains Tax Allowance
This has increased to £12,300 from £12,000.
Note also that from now you have 30 days to inform HMRC of any capital gains owing from the sale of a residential property which has a chargeable capital gain on it. Let us know if you are looking at selling a buy to let, an inherited property or a holiday home.

Self Assessment Tax Return planning
Clients will have received an email from Susie last week regarding planning for tax returns.

Some of you have already mentioned that you are planning on using the extra time that you have at home; to collate information earlier than prior years.
Please let us know if you are hoping to do this, so that we can book you into the planner.

If you are due a tax refund, or believe your 2019/20 profits were less than 2018/19 then filing early may give you a cash flow advantage.

Below is a link to our post about self assessment, if you are unsure as to whether one is required. https://mooreaccountancy.co.uk/self-assessment-tax-return-2019-20/

Finally note that there is currently the option to defer your second payment on account, due in July 2020 towards your 2019/20 liability. Instead this will be payable with your January 2021 payment.
No penalties or interest for late payment will be charged in the deferral period.

COVID-19 UPDATES

You should have been emailed a link to our regularly updated website page.

https://mooreaccountancy.co.uk/moore-accountancy-covid-19-support-update-small-business-and-individuals/

This details information provided by the Government on schemes which you may be able to access during this difficult time.

Links are provided to:

VAT Deferral scheme
Job Retention Scheme
Self Employed Grants
Universal Credit
The various other support options

Keep an eye on the page as it is updated as and when the Government provide the detail behind their headline notices.

If you have any questions, please email us at info@mooreaccountancy.co.uk

IR35 “OFF-PAYROLL” RULES DELAYED

The new rules for workers providing their services through personal service companies (PSCs) that were due to start from 6 April 2020 have been delayed by a year, due to Covid-19.

This would have represented a significant additional administrative burden on large and medium-sized businesses and would have resulted in more income tax and national insurance being deducted from workers affected.

Please let us know if these changes affect any plans we may have discussed earlier in the year.

KEY DATES

05/04/20 - End of the 2019/20 tax year

06/04/20 - Beginning of the 2020/21 tax year

19/04/20 - PAYE & NIC deductions for month ended 05/04/20 (March payroll)

30/04/20 - Corporation tax due for year to 31/07/19

07/05/20 - Final submission of VAT return under MTDfVAT for quarter ending 31/03/20

19/05/20 - PAYE & NIC deductions for month ended 05/05/20 (April payroll)

31/05/20 - Corporation tax due for year to 31/08/19

For any businesses struggling with payments, please contact HMRC to see if they will agree a Time To Pay arrangement - https://www.gov.uk/difficulties-paying-hmrc

Copyright © 2020 Moore Accountancy Limited, All rights reserved.

Our mailing address is:
info@mooreaccountancy.co.uk

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Moore Accountancy · 1 Northway · Altrincham · Cheshire, WA14 1NN · United Kingdom