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Self Employed Income Support Scheme (SEISS) Grants
Tax Accountancy

Self Employed Income Support Scheme (SEISS) Grants

Self-Employment Income Support Scheme (SEISS)


What is the Self-Employment Income Support Scheme (SEISS)?

The Self-Employment income support scheme, also known as SEISS, was introduced by the government to support self-employed employees throughout the coronavirus outbreak. The scheme offers a grant payment worth 80% of someone’s monthly trading profit, for a three-month period, worth up to £7500 in total.

The first round of the grants opened for applications on 13th May 2020 and then closed on 13th July 2020, as more lockdown followed in 2020, two more grants were made available to apply for.

On 3rd March 2021 it has been announced a fourth grant will be available to apply for from the end of April and thereafter a fifth grant to cover up until September 2021. The Fifth Grant is likely to be capped at a higher amount due to it covering a longer period.

Each grant covers the following periods:

1st Grant: April 2020 to June 2020 (3 Months)

2nd Grant: July 2020 to October 2020 (3 Months)

3rd Grant November 2020 to January 2021 (3 months)

4th Grant: February 2021 To April 2021 (3 months)

5th Grant: May 2021 to September 2021 (5 months)

 

How is the SEISS Calculated?

The first 3 grants that were available for self-employed individuals to apply for, was based on their total income for 2018/19 tax year, this would be the amount on their 2018/19 tax return that was submitted to HMRC. However, each grant then multiplies the profit figure by a certain percentage (dependent on the grant applied for), and then the amounts paid are capped.

Unlike the first three grants, the fourth grant, available to apply for in April, will be based on the individual’s total income on their 2019/20 tax return. This has been good news to the 600,000 self-employed individuals who missed out on the first three grants because they had only become self-employed in the 2019 tax year.

If you are not eligible based on your 2019 to 2020 Self-Assessment tax return, HMRC can then look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020.

 

Who was eligible for the first 3 SEISS grants?

In order to be eligible for a grant under SEISS, all of the following must apply (please note that when we refer to self-employed this includes a partner in a partnership and when we refer to self-employment income/profits this includes partnership trading income/profits):

  • You submitted a Self-Assessment tax return for the 2018/19 tax year, which included self-employment profits, by 23 April 2020 (see What if I have not submitted my 2018/19 tax return yet? and exceptions for certain groups of individuals).
  • You were self-employed in the 2019/20 tax year and traded for at least part of that year
  • You intended to continue trading in this tax year (2020/21) for at least part of the remainder of the year (or would do so but for coronavirus)
  • You carry on a trade which has been adversely affectedby the coronavirus. For the first grant, you needed to have been adversely affected at some point on or before 13 July 2020. For the second grant, you needed to have been adversely affected at some point on or after 14 July 2020 up to the closure of claims for second grants on 19 October 2020. There were additional conditions for the third grant.

Please note you can no longer apply for the first three grants.

 

Who is eligible for the fourth and fifth grants?

Unlike previous SEISS grants, the fourth and fifth grants are also open to people who became self-employed for the first time between 6 April 2019 and 5 April 2020. With the fourth grant they will look at your 2019 to 2020 Self-Assessment tax return, trading profits must be no more than £50,000 and at least equal to your non-trading income.

  • To be eligible for the fourth grant you again must be a self-employed individual or a member of a partnership.
  • You must have traded in tax year 2019 to 2020 and submitted your tax return by 2 March 2021, and still have been trading in tax year 2020 to 2021
  • be currently trading but are impacted by reduced demand due to coronavirus
  • have been trading but are temporarily unable to do so due to coronavirus
  • you intend to continue to trade
  • you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus

Please note you can no longer apply for these two grants.

 

How to claim

The fourth SEISS grant will be available to claim through the government’s website from late April 201 until May 2021, this is so HMRC can process any tax returns submitted for the 2019/2020 tax year.

HMRC will contact anyone who is eligible in Mid-April to give you your personal claim date, this will be the date you can make your claim from.

 

What do we know about the Fifth and final Grant?

There will be a fifth and final grant covering May to September, claims for this grant can be made from late July if you are eligible.

The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.

 

How SEISS payments should have been reported

Payments from the first, second and third SEISS grants (received on or before 5 April 2021) should have been included on your 2020 to 2021 return in the box for Self-Employment Income Support Scheme grants. These can be found:

 

  • on page 2 of the ‘other tax adjustments’ section, within the Self Employment (full) page (SA103F) – this is Box 70.1 on the paper return
  • in the ‘other tax adjustments’ section of the Self Employment (short) page (SA103S) – this is Box 27.1 on the paper return
  • on page 2 of the ‘trading or professional profits’ section of the partnership page (SA104) – this is Box 9.1 on the paper return
  • at section 3.10A of the SA200 tax return

HMRC are correcting returns where SEISS grants have been reported incorrectly.

If HMRC have corrected your return, you must check whether you used the correct boxes or not.

 

If you reported SEISS payments in the correct box

If the amount of SEISS payments you reported did not match HMRC records, HMRC will have adjusted your tax return to match their records and send you a revised tax calculation.

You must check the figure HMRC put on your revised tax calculation against your records.

You can do this by signing in to the SEISS online claims service, which will tell you how much you received for each grant. Alternatively, you can check the bank account you used to receive payments.

If the figures do not match, phone the Coronavirus (COVID-19) helpline for businesses and self-employed people.

 

If you reported SEISS payments in the incorrect box

If you did not use the approved box (for example, you put your SEISS grants in the ‘turnover’ or ‘any other income’ boxes instead), you need to update your return to remove the SEISS amount from the incorrect box or boxes.

If you do not correct your return, you’ll be charged twice for tax and self-employed National Insurance on the payments you received. If you’re expecting a repayment and do not correct your tax return, you will receive a reduced amount or may have a bill you were not expecting.

You can update your return online or talk to your tax adviser about correcting the error.

If you included your SEISS grants in an incorrect part of your return (such as the ‘turnover’ or ‘any other income’ boxes), you can make amendments by phoning: 0300 200 3310.

Amendments for other reasons must still be made online or by writing to HMRC.

 

If you did not report SEISS payments

If HMRC records showed you received SEISS payments, but you did not report them in your return, HMRC will add the amount shown in their records and send you a revised tax calculation.

 

This adjustment may mean:

  • your expected repayment is reduced
  • your tax bill is increased
  • you have an unexpected bill

The updated tax calculation shows how the change has affected your payments on account. You need to pay any tax owed by 31 January 2022.

You can access your bill online or talk to your tax adviser to understand how your payments have been affected.

 

If you did not submit a self-employment or partnership page

If you did not need to submit a self-employment or partnership page with your 2020 to 2021 Self-Assessment tax return, you will not have been eligible to claim SEISS grants.

 

If your HMRC records show you did receive SEISS payments, HMRC may have added the amount of these payments to your return and sent you a revised tax calculation. HMRC will expect you to recover any SEISS payments you were not eligible for.

If you were eligible for SEISS but forgot to submit a self-employment or partnership page, you need to update your return to include those pages, or talk to your tax adviser.

 

Further support

If you have any questions regarding the SEISS grant, or how to now declare these in your tax return, then please contact Rebate My Tax direct where one of our experts can help you out.

All other information regarding the SEISS Scheme can be found on the government’s website here.

UTR Number
Tax Accountancy

UTR Number (Unique Tax Reference Number)

What is a UTR number?

Unique Tax Reference numbers, more commonly known as UTR’s are 10-digit codes that uniquely identify you or your business. Not everyone has a UTR number, but if you are carrying out self-employed work then you will need to register for one as soon as possible. The 10-digit number will be used by HMRC when dealing with your tax, you will not be able to submit a tax-return or claim a refund without one.
UTR numbers are especially necessary for CIS (construction industry scheme) tax refund registration, without a valid UTR number, your self-assessment tax return won’t be submitted correctly and this can result in a potential fine.

Why do I need a UTR number

The only people who need UTR numbers are those who file Self-Assessment tax returns.
If you do file self-assessment tax returns, you need a UTR number so that:
1. HMRC can monitor your tax obligations
HMRC will use this reference to track your tax obligations, which could help you also get a tax refund if you’ve overpaid your tax.
2. You can file tax returns
You’ll need it for your 2019/2020 self assessment tax return if you’re self employed.
3. You can partner with accountants
Accountants like Rebate My Tax Ltd will need to know your UTR to help with your filings and financial affairs.

 

How do I get my UTR number?

You are automatically sent a UTR number when you register for self-assessment, you should receive the number in the post from HMRC within 3-4 weeks. If you have yet to register for self-assessment and need your UTR number to submit a return, you can use this easy form on our website to apply for one here.

In order to register for your UTR number, you’ll need to provide:
• Your full name
• Your current address
• Your National Insurance Number
• Your date of birth
• Your phone number
• Your email address
• The date that your self-employment began
• The type of business you’re starting
• The address of your business
• The phone number for your business

What happens if I cannot locate my UTR number?

If you have lost your UTR number, you do not need to panic, your UTR should be quoted on any of the following documents listed below from HMRC.
• Your SA250, or your “welcome to self-assessment” letter
• Previous self-assessment tax returns
• Reminders of payment
• Your notice to file a tax return
• Your statement of account
If you do not have any of the above letter’s then you can call HMRC directly and they will again send your UTR number via post.

 

Still can’t find your UTR number?

 

Then visit this HMRC site for more info on how to get your UTR number

 

The importance of registering for a UTR:

If you are working as self-employed and have not notified HMRC – and have therefore not received a UTR number – this can be dangerous. If HMRC find out, you may have to pay a hefty fine and potentially face criminal prosecution, that is why it is important to apply for a UTR number as soon as you carry out any self-employed work. It is also important as your accountant that we have your correct UTR number, as we will use your unique number to track work carried out and claim back the maximum refund for you.
If you require any more information regarding your UTR number please contact us via phone, email or whatsapp.

Need more help with a UTR number?

Get in touch and we can try and help you further. CONTACT US TODAY

 

 

Tax Code
Tax Accountancy

Understand Your PAYE (Pay As You Earn) Tax Code

HMRC Pay As You Earn (PAYE)  Tax Codes

Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension, you will be able to see your tax code on your payslip provided by your employer. It is a good idea to check you are currently on the right tax code as it will determine the amount of Pay As You Earn (PAYE)  tax you are charged on your salary.

Every tax code is made up of letters and numbers. The number 1250, for example, should reflect how much tax-free pay you are allowed to earn in each tax year – as a general guide, you need to multiply the number by 10 to get the total amount of income you can earn each year before being taxed. If your tax code is 1250 then you will not pay tax on the first £12,500 earned on your salary.

The amount of tax you are due to pay can be affected by your tax-free allowance, these can include

  • Pensions contributions
  • Personal Allowance
  • Gifts to Charity
  • Blind persons allowance
  • Interest payments on qualifying loans

 

You can read about the certain payments that can reduce the amount of tax you pay here

If you notice your tax code has changed, this could be for any of the following reasons

  • If you have started a new job, your new employer may not have received your P45 yet, this will trigger an emergency tax code. Once the employer has the P45 your code will then be adjusted and the right amount of tax deducted.
  • If there is a change in your income, if your income increases or decreases there can be a change in your tax-free allowance.
  • State benefits such as employment and support allowance, state pension, widows pension etc can affect how much income you receive on your payslip, if you stop and start these benefits they can affect your tax code.
  • Benefits from your employment such as private health care, car allowance, if you opt in and out of these benefits then this again can affect your tax code and pay.

 

You will usually receive a PAYE code notice in the post from HMRC if your tax code is updated, always carefully check that these details implement your current tax-free allowance.

HMRC will need to be contacted if you believe your tax code is wrong, as this means you could have either underpaid or overpaid in tax. In the case where you have underpaid, HMRC will bill you for the amount owed, with an over payment they will either adjust your tax code so that you pay less tax and receive more wages or sometimes if it is for a previous tax year they will pay you the amount owed in full into your bank account.

As a client of Rebate My Tax we will be the ones to contact HMRC for you regarding any issues with your tax code. We pride ourselves on taking any stress away from our clients, whilst giving the most professional 5* service.

If you require more information on tax codes, please contact us directly. You can also check out the different types of tax codes here

 

 

 

 

Tax Accountancy

Self Assessment Deadline & Late Penalties

Self Assessment Deadline 31st Jan & Late Penalties

31st January is an important date, it is the deadline to complete and submit your tax return to HMRC.

If you receive a tax return from HMRC then you are legally obliged to complete it, even if you think it is not relevant to you. If you are asked to do a return and are 100% sure you do not meet the criteria, then contact HMRC on 0300 200 3310 as soon as possible to withdraw. Please note you have 2 years only to withdraw a return.

Your Tax Return must normally be filed (completed and submitted to HM Revenue and Customs) by 31 October following the tax year end (5 April) if you file on paper, or by 31 January following the tax year end if you file on-line. So the 2017 Tax Return (for the tax year 2016-2017) is due by 31st October 2017, if filed by paper, or by 31st January 2018, if filed on-line. You will be sent your Tax Return – or a notice to file on-line – about May after the end of the tax year.

Even if you do not owe tax you still need to submit your return, not submitting a return will result in fines, they also may issue an estimated bill, this will stand until you submit your completed tax return.

Penalties for not submitting Self-Assessment on time:

1. The first penalty you receive will be for late filing, this will be £100

2. If another 3 months go past still without a return, you when then be charged a daily penalty of £10 per day up to a maximum of £900

3. Once you get to six months past the deadline date there will be a penalty of £300 (or 5% the tax owing if this is greater)

4. You will then be charged another £300 (or 5% the tax owing if this is greater) once you get to the 12 months late mark.

Even if you do submit your return but payment is made late, you will be charged the following:

1. 5% of tax unpaid after 30 days

2. Another 5% of tax unpaid after 6 months

3. Another 5% of tax unpaid after 12 months

If you have a lot of outstanding Tax Returns, please do not feel worried, contact us at Rebate My Tax and we can start looking at your current and previous tax years. We will require information as to why your returns were not completed, and if you have a reasonable enough excuse then we can do our best to get your fines and penalties reversed and get your taxes back up to date.

To avoid hefty fines, it is always advisable to submit your return as soon as you can, as a client of Rebate My Tax we will always make sure your taxes are completed efficiently and on time to avoid any stress and always getting our clients the maximum rebates guaranteed.

Tax Accountancy

CIS – Construction Industry Scheme

CIS – Construction Industry Scheme

 

What is CIS?

If you work for a contractor in the construction industry as a self-employed individual then, under the CIS, the contractor is obliged to withhold tax on its payments to you. This is different from other self-employed individuals, who normally receive their payments gross.

Registered CIS workers receive their payments net of 20% tax. If a subcontractor is unregistered, they will receive their payment net of 30% tax. It is also possible to apply to receive payments gross.

There is more information on the CIS on https://www.gov.uk/what-is-the-construction-industry-scheme

How to claim back tax under the Construction Industry Scheme (CIS)?

Are you taxed under CIS? If so then your contractor is obliged to withhold tax on its payments to you. Many people under CIS overpay tax as a consequence and need to claim a refund, here at Rebate My Tax we can guide you on what expenses you can put through and get you the biggest rebate, but below is more information on the construction industry scheme.

When will a refund be due?

Where tax is deducted under CIS and you are on a lower income, a refund will normally arise because of the expenses of the trade and because you will normally have personal allowances available.

You can check with us here at Rebate My Tax on the types of expenses that you may be able claim in your tax return. The general rule is that any expenses must be wholly and exclusively incurred in relation to your work. This is why it is important to keep your receipts and either upload them to the Rebate My Tax app or send them via post to us.

It is worth bearing this in mind, because you may be asked to provide evidence by HMRC that firstly, you actually incurred an expense and secondly, the expense was wholly and exclusively for your business. You should not just make them up or put in private expenses just so you can reduce your taxable profits and get a bigger refund – it is illegal and penalties are severe.

How do I get the refund?

If you work under the CIS, we will file your Self-Assessment tax return and your refund will be reconciled as part of this.

 

Should I use an agent to file my tax return and get my refund?

Under CIS, you are faced with having to complete and submit an annual tax return to claim what may be a fairly significant tax refund.

Completing and submitting a Self Assessment tax return can be complex and daunting, that is where we come in, we will go through your income and expenses and get the best possible refund for you.

You should be aware that when it comes to CIS, there can be problems with certain tax agents, for example some agents might inflate the tax refund adding more expenses to maximise the percentage they will take. While you may be tempted to turn a blind eye to such a thing, as this will mean a higher refund in the first instance, if HMRC check your tax return, it is you rather than the agent who will have to account for the underpaid tax, perhaps some years later. In such cases, on the basis that a fee will have been deducted already by the tax refund organisation, the HMRC debt may well be more than the financial benefit you received in the first place.

In these instances, we have also heard of severe penalties being charged for the submission of an incorrect tax return.

At Rebate My Tax, we specialise in CIS workers, we pride ourselves in being able to offer a totally bespoke service, giving our clients the most personal and professional service. We provide a fast, hassle-free, honest tax refund service and build relationships with our customers so we can provide them with the best personal and professional services.

Tax Accountancy

Pay As You Earn (PAYE)

Pay As You Earn (PAYE)

What is PAYE?

For most UK workers, the Pay As You Earn (PAYE) scheme is how they pay the tax they owe on their income. HMRC gives you a tax code, which your employer uses to work out how much tax to take from your pay. They then send that money to HMRC before paying the rest to you. In most cases, you don’t have to do anything about it yourself. However, it’s worth keeping tabs on how much tax is coming out of your pay. It’s possible for your tax code to be wrong, or for you to be owed a refund on some of your work expenses.

Can PAYE workers be entitled to a tax rebate?

Many PAYE workers are missing out on possible tax rebates, there are many reasons why they could be owed tax. This could be from either having the wrong tax code & HMRC taking too much tax or as in many jobs you will often be asked to travel to work at other temporary work places or for training, in those cases then you could be due money back for travel, food or even accommodation costs.

The tax year runs each year from 6th April to the 5th April the following year, so make sure your employment is within these dates for the work you believe you were overtaxed on.

The great thing is you can claim back for the past 4 tax years so if you have not done so before then could be due a good amount back. Please speak to one our tax experts here at Rebate My Tax to find out more information and we can get your claim going as quickly as possible.

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Tax Accountancy

Marriage Tax Allowance

Marriage Tax Allowance

What is marriage tax allowance?

The marriage allowance is a government scheme designed to give married couples income tax relief. Essentially, you are able to transfer some of your tax-free allowance to your spouse if you make less than the current personal allowance. In doing this, they can reduce their tax bill by up to £250 over the year.

Am I eligible?

  • You need to be married or in a civil partnership
  • One partner must earn under your personal allowance, usually around £12,500
  • The other must earn between £12,501 and £50,000 (anyone who pays the basic 20% tax rate) 1
  • You both need to have been born after 6 April 1935 1

The non-taxpaying partner can “give” the taxpaying partner £1,250 of their allowance. By adding to their tax-free alliance, they pay up to £250 less. The best way to apply for the marriage allowance is online, where you simply enter your details (or you can also apply by phone if you prefer). The non-taxpayer should complete the application. Once you’ve submitted your application, you’ll receive a letter from HMRC detailing whether or not you’re eligible.

You can use this calculator to work out if you qualify for Married Couple’s Allowance, and how much you might get. You need to be married or in a civil partnership to claim. https://www.gov.uk/calculate-married-couples-allowance

For more information and how to claim visit https://www.gov.uk/married-couples-allowance

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Tax Accountancy

Uniform Tax Allowance

Uniform Tax Allowance

If you’re paying to buy, repair or replace your uniform or protective clothing you need for work, you may be due a tax refund from HMRC. You won’t get it automatically, you will need to claim it back by submitting a tax return. You must have proof of your expenditure so it is important to keep any receipts, you can upload them to our amazing app so it is easy for yourself & us as your agent to keep track. We will then put the expense into your tax return to claim back.

How much could I get?

The amount you’re able to claim tax relief on depends on your industry. The standard flat-rate expense allowance for uniform maintenance is £60 (2020/21) – if you’re a basic-rate taxpayer, you can claim 20% of this back, so £12. Higher-rate payers can reclaim £24 (40% of £60). The great thing is your can claim for within the last 4 tax years if you have no done so before.

You are eligible to claim if you fit any of the following.

  • You wear a recognisable uniform that shows you’ve got a certain job, such as a branded T-shirt, nurse or police uniform. Although even plain clothes which you only wear for work may count.
  • Your employer requires you to wear it while you’re working.
  • You have to purchase, clean, repair or replace it yourself. However, you can’t claim if your employer washes your kit, provides facilities to do so (even if you don’t use them) or pays you for doing this maintenance.
  • You paid income tax in the year you are claiming for.

For more information regarding Uniform Tax Allowance please contact one of our Tax Agents here at Rebate My Tax and see how much you can claim back.

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