Tax Top Tips - Three “must do” things…

Business Owners

1

COVID and Finances

With Lockdown 3.0 still taking grip, have you considered all available COVID measures and grants to help your business survive?

There is still a wide range of Government support available to businesses; including the Self-Employed Income Support Scheme, the Coronavirus Job Retention Scheme (to claim for employees on furlough) and grants from local councils which are to assist businesses being forced to close. 

The government has also extended the deadline for Bounce Back Loans & Coronavirus Business Interruption Loan Scheme applications until 31 March 2021, therefore now is the time to review your finances and if your business has been affected by COVID-19 then you may be eligible for a government backed loan.

These loans can be used to refinance existing debt, cover overheads whilst your business is under pressure or to fund that next expansion.

2

Financial records

Now more than ever you need to have your accounts and finances under control and in order; the financial insights you can access from your accounts helps you make smart decisions. This may mean just keeping up with your book-keeping, but for those key decisions you will probably want to prepare cashflow forecasts to review those ‘what if’ scenarios.

Don’t forget to utilise the new technology available to help streamline your finances; OCR (Optical Character Recognition) apps can capture your invoices and post them into your accounting software, whilst cloud accounting software can link to industry specific and general apps for workflow, timesheet recording, cashflow forecasting etc. Work smarter not harder!

3

Mental Health

It is easy to say but often difficult to do or put into action when you’re juggling your business, employees, suppliers, your bank/finances with home-schooling and family life. It is vital that you hit the ‘off switch’ and take a break. Mental health is key to you and your business surviving so a well-deserved break with the family this half-term might be in store.

Individuals

1

No Self-Assessment late filing penalty for those who file online by 28 February

A very welcome announcement indeed! However, there are pitfalls so be wary; interest will be charged from 1 February on any outstanding liabilities.

By getting your tax in order sooner rather than later, you are able to take advantage of the HMRC 12-month payment plan, for those who cannot afford to pay their tax bill on time, spreading the tax bill over up to 12 months, however this process can take time to arrange.

Filing late may also impact any open HRMC enquiries, your ability to claim tax credits and have a knock-on impact regarding National Insurance contributions. It is therefore still vital to get your tax affairs in order as soon as possible.

If you would like to find out more click here

2

Ready for the Budget?

The Budget is nearly upon us, but it is not too late to consider tax and succession planning options…

• Is your Will up to date?
• Do you have adequate insurances in place?
• Can you lock in current tax rates now?

3

Improve your Mental Wellbeing

We know it has been a stressful time for everyone, with home schooling, working from home and maybe even being furloughed. There has never been a more important time to look after and make time for yourself.

Make sure you are eating healthy, getting enough sleep, exercising, sticking to a routine and do not forget to reach out to friends, family or experts for help if you need it, you are not alone. Mental health is so important, that’s why we’ve mentioned it twice!