MYCALC LTD

Don't be part of the 600,000+ who missed the deadline for self-assessment for the 23/24 tax period. Get ahead of the game, file early, and enjoy peace of mind while avoiding penalties.

A record 11.5 million tax returns filed by the deadline 11.5 million Self Assessment customers submitted their tax returns by the 31 January deadline

SEISS - 5th Grant for the self-employed will be available from early July 2021. This will cover May 2021 to September 2021

The grant is taxable and will be paid out in a single instalment.

The grant does not need to be repaid if you’re eligible, but will be subject to Income Tax and self-employed National Insurance and must be reported on your 2021 to 2022 Self Assessment tax return.

SEISS Update

Thankfully, and after yet another turnaround, the Government have confirmed that they have revisited the calculations on which the next SEISS grant will be based. Furthermore, the Chancellor has also confirmed that these grants will run up to April 2021.

So.... the upshot is that the next taxable grant will be enhanced and will be equivalent to 55% of average trading profits (as per previous calculations) and will cover November, December and January 2021 and will be capped at a maximum of £5160.

There are eligibility criteria as always, but to keep it simple – if you were eligible for the previous grants, then you are still eligible this time round. You don’t need to have claimed previously to claim for this grant.

The portal for making the new SEISS claims will be open on 30 November.

As always, please get in touch with us if you’d like to ask any questions – we’ll do our best to help.

Deferred July 2020 Self Assessment Payment on Account

HMRC has identified that some Self Assessment customers, who chose to defer payment of their July 2020 Payment on account due to COVID-19, may receive a Self Assessment statement, showing that payment is due and interest is accruing.

HMRC have confirmed that they will not impose any late payment interest or penalties on the deferred July 2020 Payment on Account, provided it is paid in full by 31 January 2021. Any customers who may have difficulty in making their payment
can access support on GOV.UK.

-assessment

We can take away the stress and hassle of sorting your self-assessment and tax! Give us a call for a quote on 0333 344 6820

There’s still time to apply for the second grant of the Self-Employment Income Support Scheme. Make your claim by 19 October.

Business Mileage

Do you claim business mileage through your business?

HMRC's rules are as follows:
You are allowed up to 45p per mile tax free for every business mile you travel in your car.
* 45p for the first 10,000 miles
* 25p for every mile thereafter

This is only claimable on BUSINESS miles so ensure you keep a detailed record!

Have you started a business recently? If so you will need to register for self-assessment.
If you need help filing your self-assessment then please drop the team an email or give us a call.

Email - [email protected]
Phone - 0333 344 6820

Everyone at MYCALC!

Register for and file your Self Assessment tax return Register for Self Assessment, sign in and send your Self Assessment tax return online

There are only 114 days until your 19/20 Self Assessment needs to be filed to HMRC.

The government has announced that any tax liabilities that become apparent from this are not due until 31st January 2022.

If you need help filing yours, please drop the team an email or give us a call.

Email - [email protected]
Phone - 0333 344 6820

Everyone at MYCALC!

TAKE CONTROL OF YOUR BUSINESS FINANCES!

It's nearly month end again!!

What plans have you put in place to monitor your business finances and performance?

The below steps will help make the process easier:

1 - Schedule time to complete your month end accounts.
2 - Review your monthly sales.
3 - Record your monthly expenses.
4 - Track your monthly mileage.
5 - Reconcile your business bank account/ credit card and paypal accounts.
6 - Review your finances.
7 - Set new targets.
If you need help with any of the above steps then give us call! 📞0333 3446820

Self Employed Income Support Scheme - Second and Final Grant
Two days ago, the SEISS opened for claims for the second and final grant. Applicants can make their claim any time from today (19th August) until 19 October when the scheme closes.
Eligibility is the same as the first grant, and as part of the process claimants will be required to confirm that their business has been adversely affected by COVID-19 at any time since 14 July (basically, you have received lower income or experienced higher costs). HMRC expect applications to be made honestly and in good faith, and they are also insistent that applicants keep a record of evidence to support how the business has been adversely affected.
The second grant is not as generous as the first, and is worth 70% of the average monthly trading profits (capped at £6570). HMRC will calculate the amount you are entitled to based upon previous returns that have been submitted.
To make a claim - search http://GOV.UK/ for 'Self-Employment Income Support Scheme) and have the following information handy....
1. National Insurance Number
2. Personal UTR Number (you can find this on any correspondence from HMRC)
3. Government Gateway User ID and Password
4. Bank/Building Society account number and sort code and address details of where the statements are sent for the account
HMRC will verify the claim and make payment to the account within 6 working days.
IMPORTANT - there are an increased number of scams at the moment, if you receive an email from HMRC asking you to click a link or asking for name, credit card/bank account details - do not respond. Only make your claim via logging into your Government Gateway account via the http://GOV.UK/ page.

Welcome to GOV.UK GOV.UK - The place to find government services and information - Simpler, clearer, faster

Meet the team at My Calc: Paul, Louise and Steve.

Thinking about hiring an accountant?

As your business grows there’s no escaping the fact that at some point, you’ll need to consider whether you need an accountant to help you along the way.

Although cost is clearly important, what matters more is that you look at the bigger picture. Like all small business owners who are looking to save money, you may think you can’t afford an accountant but look at how long it would take you to do certain tasks (such as taxes/submissions/reconciliations), and ask yourself, is that a good use of your time? Is that what you want to spend your time doing instead of spending your time and skills with your customers?

Your personal relationship with your accountant counts for a lot, and you’ll do well to find someone who shares the same outlook as you.

Once you've handed over your company's finances to someone more experienced in accountancy matters, it will free up more of your time to concentrate on other aspects of your business!

If you are looking for a qualified professional accountant with more than 20 years of experience then please give us a call.
📞 0333 3446820

HMRC SCAMS

Happy Monday Everyone!

Unfortunately, there are more HMRC scams than normal at the moment. A lot of scam emails are so obvious they get deleted straight away however some are so convincing its hard to tell if they are genuine or not.

Please remember that HMRC will NEVER email you out of the blue asking you to click on links or complete forms (like the attached) - nor will they ring you telling you that you will be arrested if you dont make a payment over the telephone.

If HMRC (or someone pretending to be HMRC) ever call you out of the blue, tell them that you will call them back on 0300 200 3310.

Stay alert, keep your wits about you and if you already have an accountant who acts as your agent then get in touch with them straight away - they are your link to HMRC and will deal with this type of thing on your behalf.

Have a great week!

PAYMENT ON ACCOUNT (in simple terms)

We have received quite a few enquiries recently regarding the HMRC Payment On Account arrangement, so we thought it may be helpful if we shared with you what it means, and also who is affected.

OK, so first things first - this applies to everyone who completes a self assessment (either yourself or via an agent) - not just self employed workers. Essentially, everyone who doesn't pay tax via PAYE.

Now I expect you are sitting up and taking notice. Good.

How it works is pretty much like your electricity and gas bill. Imagine HMRC are a 'tax supplier' and by submitting your self assessment you are providing a 'tax meter' reading. You provide the reading and the lovely commissioners will then tell you how much you owe based upon how much 'tax' you have used.

You then ring them up to make payment. Imagine the following conversation;

Client: "I'd like to pay my 2019/20 tax bill please? I owe you £1200 by my meter reading"
*gives card details and account details etc...
HMRC: "Thank you very much, that's gone through now"
Client: "OK, well thanks - goodb...."
HMRC: "WOAH! Hold your horses......."
Client: "Sorry? I've paid my bill - is there something wrong?"
HMRC: "As you owe over £1000, we reckon you will owe similar amount next year too - and we don't want to wait until Jan 2022 for it neither."
Client: "Oh. So what do I need to do?"
HMRC: "You will need to pay us an amount equal to half of your 2019/20 amount before 31 Jan 2021 and the other half before the end of July 2021"
Client: "But I may not have submitted my return by then and the tax may not be the same!"
HMRC: "Yeah, we get that. But we will sort out any balances when you do submit your return. So the earlier you get your return to us next year, the better."
Client: "But what if I cant pay it? It means my tax bill is actually 50% higher than I was expecting!!"
HMRC: "We'll add penalties and interest"
Client: "Oh. I'll make sure I pay it then"
*Client hangs up*
Client (walking away from phone): "Kids! Change of holiday plans!"

Ladies and Gentlemen, this is the premise of Payment on Account in a nutshell. So if you don't want any nasty surprises in January 2021, you need to get your return completed sooner rather than later - especially if you think you may owe more than £1000 for 2019/20.

Our advice
If you have already completed your 2019/20 tax return, you will know already whether you need to make a payment on account. Give yourself a gold star.

If you haven't already completed your return, then act now. Get your 2020 return done and find out NOW if you need to change your holiday plans.

As always, if you want to ask any questions or if you need our help with completing your return then give us a call.

Tax Returns for High earners - From £125+VAT!

If you are earning over £100,000 a year, you must file a self assessment tax return with HMRC. High earners must include income such as employment income, employment benefits, dividends, interest etc.

We will ensure you are claiming the right relief which will in turn reduce your tax liability!

In our experience, there are 8 golden questions for anyone considering starting up on their own...

⭐ What business structure is best for me?
⭐ Who do I need to register with?
⭐ Why would I need a separate bank account?
⭐ What expenses are allowable?
⭐ What records should I keep, and for how long?
⭐ How do I pay myself?
⭐ How do I take money out of the business?
⭐ Should I need it, who will be there to hold my hand through this process?

It can be a minefield. Confusing, overwhelming and not to mention stressful!

If you want some gentle support or guidance through the early stages (and beyond) please contact us to arrange a free initial consultation by either giving us a call or dropping us a line. 📞0333 3446820

SEISS - Self-Employment Income Support Scheme

The 2nd instalment of the Self-employment income support scheme will be available in August. To claim the 2nd grant your business must have been adversely affected on or after the 14th July 2020.

For more information see the link below or contact us on 0333 3446820!

How different circumstances affect the Self-Employment Income Support Scheme If you're self-employed or member of a partnership find out how your circumstances can affect your eligibility for the scheme.

MYCALC LTD added a button to help you learn more about them.

Temporary VAT reduction for the hospitality industry!

The Chancellor has just announced a VAT reduction from 20% to 5% on food, accommodation and attractions. This will begin on 12 July and run until 12 January 2021!

https://www.gov.uk/government/publications/reduced-rate-of-vat-for-hospitality-holiday-accommodation-and-attractions

Reduced rate of VAT for hospitality, holiday accommodation, and attractions This tax information and impact note is about the reduced rate of VAT for hospitality, holiday accommodation, and attractions between 15 July 2020 and 12 January 2021

Do you want more time, save money, reduce expenses, removes tax worries and have an experienced business advisor?

This will happen once you've handed over your company's finances to someone more experienced in accountancy matters.

National Living Wage

Since the introduction of the CJRS (furlough) scheme, there are lots of people who have not undertaken any work since March.

If you have been furloughed and you are now returning to work, or if you are an employer who has staff that you are bringing back from Furlough Leave then please make sure that you increase staff wages in line with the new National Living Wage.

New rates from April 2021

£8.72 per hour for ages 25 and over
£8.20 per hour for ages 21 to 24
£6.45 per hour for ages 18 to 20
£4.55 per hour for under 18
£4.15 per hour for apprentices

Defer your second payment on account which is due in July'20!

You have the option to defer your second payment on account if you’re:

* Registered in the UK for Self Assessment and
* Finding it difficult to make your second payment on account by 31 July 2020 due to the impact of coronavirus
You can still make the payment by 31 July 2020 as normal if you’re able to do so.

If you chooe to defer you do not need to tell HMRC that you’re deferring your payment on account, however, it must be paid by 31st January 2021.

What this pandemic has shown us is that face-to-face meetings aren't necessary. As an online accountancy firm we provide our services via email, telephone and zoom calls makiing life easier for you. This also helps us to keep our fees down!

Give us a call on 0333 3446820 for a chat.

File your 2019/20 Self-Assessment early! Here's why!
So many people wait until closer to the deadline to file their self assessment and we completely understand why. A lot of small businesses have their busiest period in the run up to Xmas and need the income from then to pay any tax liability.
However, this year things are different.
We have had lots of clients who have had their self-assessment submitted already and used some/all of the SEISS grants to pay the tax that is due.
By doing this, there is less pressure to save between now and January 31, and there are no self-assessment deadlines to worry about until 2022!
In addition to the above, there is also the below to consider.....
📌 Gathering information
While everything is fresher in your mind, its easier to pull your information together rather than rushing around at the end of the year trying to find receipts from months ago.
📌 Budgetting
If your tax bill is higher than you expected, it's better to know as soon as possible so you can budget over the coming months if you need to.
📌 Payment
You can file early and still pay closer to the deadline - the money just needs to be with HMRC by the 31st January deadline.
As always, if you need an accountant to help you through everything then drop us an email at [email protected]

More information regarding the Self-Employed Income Support Scheme

Now that the window for the first grant has closed, the countdown is on to the 17 August when the second and final grant can be claimed. The window for making the claim will remain open until 19 October 2020. The second grant is less generous than the first, capping the total at 70% of the average monthly trading profits up to £6750. The criteria for eligibility is the same as the first grant.
DONT FORGET - self-employed individuals can also avail of the Business Interruption Loan scheme and also the Bounce Back loans.
Clearly, these are loans that will need to be repaid - however they are available to self-employed and not just limited companies.
Finally, if you have been overpaid on the first grant, made a claim in error or would like to voluntary repayment of some or all of the first grant - you can now do so.

If you are making a repayment due to the first two scenarios, then you will avoid any future penalties - however there is also a case to be made for making a voluntary payment of the grant ; these grants are taxable and subject to national insurance. Put simply, if you should find yourself in a position whereby you can afford to make a repayment - you should do so in order to remove some of the additional tax that will have arisen from the receipt of the grant.
Some large businesses have already made plans to return payments that they have received under the CJRS scheme - very probably because the payments received from the government are taxable as income.

As always, we are here to help - email at [email protected] or pop us a message via facebook.