COVID-19 Tax news for small business

I hope as many of you as possible that run small businesses have had the opportunity to take a break from work and to spend much-needed time with friends and family.

It's been a tough 18 months and we're not out of the woods yet, although it is good to see many things in our communities returning to normal.

In this month's Blog, we've rounded up the latest COVID-19 tax news to help you and your team keep up to date.

If you've fallen behind with tax payments

HMRC recently announced it is about to restart tax debt collection work and will be contacting customers who have fallen behind with their tax during the pandemic.

On the positive side, it says it will take an understanding and supportive approach to dealing with those who have tax debts or are concerned about their ability to pay their tax.

Many small businesses and contractors have faced hardship and uncertain financial circumstances. As the state financial support schemes start to wind down, HMRC says it wants to offer practical support.

If you can pay your taxes then you should do so, but if you're struggling, HMRC says it will work with businesses to agree a plan based on your financial position.

What happens if you have a tax debt?

If you have fallen into debt, HMRC will try to contact you by phone, post or text message so that you can agree a way forward. You should respond as quickly as possible because, otherwise HMRC cannot tell if you need support or are simply refusing to pay.

With the number of scams on the rise, customers can check if the contact they receive from HMRC is genuine, by using guidance on how to identify HMRC related scam phone calls, emails and text messages.

Payment plans called 'Time to Pay' are often on offer, where customers pay what they owe in affordable instalments. Even if you cannot pay anything straight away, by getting in touch, HMRC we can understand your circumstances better. Another possible option may be a short-term deferral, which means nothing would need to be paid for a set period of time and they would take no further action until that time has lapsed.

There are also other forms of support available that you may be eligible for. For example, exploring the range of government-backed lending support like Bounce Back loans and Coronavirus Business Interruption Loans, and agreeing repayment holidays or extending repayment terms.

More information about payment arrangements (Time to pay) is available at How HMRC supports customers who have a tax debt.

Check if you need to change the Self-Assessment return for SEISS

If you think you may be eligible for a fifth and final Self-Employment Income Support Scheme (SEISS) grant, it's worth checking the guidance for claiming and checking when you may need to make a change to your Self Assessment tax return for SEISS payments and how to do it.

Claimants will need to work out their turnover to make the claim and must do it themselves, unlike the other grants, you cannot ask an accountant or third party to complete it.

To make a claim or to find out more go to https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme#how-to-claim

New rules for extended loss carry back claims

HMRC has also updated its guidance on the new rules for making extended loss carry back claims for trading losses of both companies and unincorporated businesses.

You can find out more here: https://www.gov.uk/government/publications/extended-loss-carry-back-for-businesses

Accountancy one-stop shop

Whether you're an individual or small business needing advice with personal or corporation tax, we offer a 'one-stop shop for your accounting and business planning.

The services we offer include:

• Tax Returns
• Taxation
• Payroll and support services
• Compliance
• Business Start Up support.

Being independent enables us to provide objective business and advisory services and our services are tailored to our clients' exact requirements - not a national model.

Our close-knit, experienced team has many years' experience in the challenges facing small and medium-sized firms, as well as larger concerns.

We also provide a complete financial management service, with the benefit of calling on our wide range of professionals.

We can:

• ensure you save on tax costs and pay competitive fees for your accounts
• provide a complete, objective, service
• be proactive, ensuring we are up to date with the latest changes and legislation
• offer a fixed fee tax return service to help you budget.

We work in partnership with many businesses, charities and individuals across West Sussex and beyond. Please feel free to get in contact with us for an informal chat about your business finances on 01403 337490 or learn more at https://www.giltinan-kennedy.co.uk/services/tax-advisers