TaxCalc Blog

Self-Employed Income Support Scheme: “one of the most significant economic interventions”

Last night the Government announced a scheme that assists the self-employed across the country during the COVID-19 pandemic. The Self-Employed Income Support Scheme will provide self-employed individuals a taxable grant worth 80% of trading profits, up to £2,500 a month for the next three months. It will also apply to members of partnerships.

An update from our CEO – Friday 20 March

First and foremost, I hope this post finds you and your respective colleagues and families well.

I’m pleased to inform you that Team TaxCalc is still very much fighting fit as I write.

How to make the home office work for you

The COVID-19 outbreak is forcing many to convert their home into a professional workspace. Take these steps to ensure it is an opportunity, not a burden.

An update from our CEO – Support Hours and TaxCalc 2020 Release

Our continued updates on what’s happening at TaxCalc:

• We are in the final stages of testing for the 2020 release with a view to the release landing by the end of this month.
• Our Customer Support Team is now set up and working from home, dealing with calls as if they are in the office.

At the time of writing, we are all OK. We have had a few of the team self-isolating but now that we are working from home, we have reduced the risk of infection considerably. Long may this continue. Plans are in place to ensure minimal disruption to you and your firm regardless of staffing levels.

COVID-19 and TaxCalc

TaxCalc, like all business is having to implement a change to how we currently work in light of the rapid acceleration of the COVID-19 pandemic. As you would expect of a family business, we have prioritised the wellbeing of our employees and their collective families. As we navigate these uncertain times together, I want to keep you updated and assure you that it’s business as normal at TaxCalc.

Are tax-free EVs a no brainer for company car drivers?

The growing range of zero emissions vehicles presents a real opportunity to cut expenses, but there are drawbacks to consider.

With few models to choose from and a frustrating ownership experience, the first wave of electric vehicles (EVs) was a tough sell. But heading into 2020, things are changing.

Company car tax is not only based on CO2 emissions, but also electric driving range. Prior rules stipulated that cars with an electric driving range of 130 miles and above would fall into the 2% car tax band, but these rules were recently scrapped. Pure electric vehicles—those without a tailpipe—will now benefit from an even lower 0% tax rate between 2020-2021. The following two years will see rates rise to 1% and 2% in 2021-22 and 2022-2023 respectively.

TaxCalc News February

HMRC Update on off-payroll (IR35) rules

Whilst a review of the IR35 implementation plans continues in the House of Lords until the end of this month, HMRC have announced changes to the draft legislation.

 HMRC has confirmed that the new rules for contractors, working for medium and large-sized companies, will affect services provided after 6 April 2020 and will not be applied retrospectively regardless of payments made after this date. Where the services are performed by the contractor before 6 April 2020 it will continue to be the responsibility of the contractor and their personal service company (PSC) to decide if the work falls within IR35 and pay the right amount of tax to HMRC.

Important information regarding NIC calculations

Possible issue with HMRC calculations for Self-Employed National Insurance Contributions (NIC)

If your clients receive a revised assessment of tax due for 2018/19, which includes an adjustment for reducing or eliminating class 2 and/or class 4 National Insurance contributions, it may be incorrect.

If the individual in question is not set up on HMRC’s self-employed database, this could occur because the system will not expect to collect class 2/4 NIC.