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Comments Off on Chancellor’s Economic Update 8 July 2020

Chancellor’s Economic Update 8 July 2020

Chancellor’s Economic Update 8 July 2020

Please find attached our summary of Rishi Sunak’s speech yesterday. We hope you find the summary interesting and if you want to talk through any of the detail please get in touch.

Comments Off on Self-employed grants ‘are liable for tax and national insurance’

Self-employed grants ‘are liable for tax and national insurance’

Self-employed grants ‘are liable for tax and national insurance’

Recipients of self-employed income support grants may not realise they are taxable, a tax group has warned. The grants are worth up to 80% of trading profits, paid in a lump sum to cover three months, and capped at £7,500. More than 2.6 million lump sums worth £7.6 billion had been provided through the scheme … Continued

Comments Off on Government clarifies furlough scheme stance for employers

Government clarifies furlough scheme stance for employers

Government clarifies furlough scheme stance for employers

Only employees who have been furloughed for at least three weeks on or before 30 June 2020 are eligible for the final phase of the scheme.  Employers had until 10 June 2020 to place any workers on the job retention scheme if they wanted to take advantage of it until 31 October 2020. Jeremy Coker, … Continued

Comments Off on Builders’ cashflow chaos prompts further reverse charge VAT delay

Builders’ cashflow chaos prompts further reverse charge VAT delay

Builders’ cashflow chaos prompts further reverse charge VAT delay

The domestic reverse VAT charge for construction services has been delayed until 1 March 2021. The way VAT is collected in the building and construction industry was originally due to change from 1 October 2019. Less than a month before it was due to kick in, the change was put on hold for 12 months … Continued

Comments Off on UK economy slumps into recession after record contraction in April

UK economy slumps into recession after record contraction in April

UK economy slumps into recession after record contraction in April

The UK’s economy experienced the largest monthly contraction on record in April 2020, shrinking by 20.4%.  The sharp fall in GDP came as the UK spent its first full month in lockdown to try and halt the spread of COVID-19. The Office for National Statistics (ONS) said April’s decline was three times deeper than at … Continued

Comments Off on Three Months until Reverse Charge VAT for Construction Services Comes in

Three Months until Reverse Charge VAT for Construction Services Comes in

Three Months until Reverse Charge VAT for Construction Services Comes in

A major change to the way VAT is collected in the building and construction industry comes into force on 1 October 2020 The domestic reverse charge VAT for construction services will put the onus on the customer receiving a service to pay the VAT element to HMRC, instead of paying the supplier. It will apply … Continued

Comments Off on Chancellor extends Self-Employment Support Scheme and confirms next steps

Chancellor extends Self-Employment Support Scheme and confirms next steps

Chancellor extends Self-Employment Support Scheme and confirms next steps

The government’s Self-Employment Income Support Scheme will be extended, giving more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months, the Chancellor announced on 29 May 2020. Rishi Sunak announces Self-Employment Income Support Scheme will be extended – with those eligible able to claim a second and final grant capped … Continued

Comments Off on HMRC relaxes stance on home office equipment until 2021/22

HMRC relaxes stance on home office equipment until 2021/22

HMRC relaxes stance on home office equipment until 2021/22

HMRC has relaxed rules that usually restrict reimbursement for spending on office equipment for the rest of 2020/21. This should help employees avoid receiving a tax bill relating to working from home during the coronavirus lockdown. Since the lockdown restrictions were imposed in the UK on 23 March 2020, homeworking has effectively become the norm … Continued