Tag Archives: selfemployed

‘An entrepreneurial Britain? Not anymore!’ – self-employed hit as IR35 problems continue

'An entrepreneurial Britain? Not anymore!' - self-employed hit as IR35 problems continue

IR35 tax issues continue to plague the self-employed sector as recent changes force freelancers to abandon the industry. As the House Of Lords Finance Bill Sub-Committee review the changes, some have called for the Government to reverse certain decisions which have “taken the UK back to the dark ages”.

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Self-employed Covid relief: When is SEISS grant five open for claims?

If the claimant’s turnover has decreased by less than 30 percent, the grant will be worth 30 percent of three months’ average trading profits.

In this case, the grant will also be subject to a cap of £2,850.

To claim, HMRC has asked claimants to calculate two different turnover figures.

Claimants will need to know their turnover for April 2020 to April 2021, in addition to their turnover for either 2019 to 2020 or 2018 to 2019.

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SEISS warning: Self-employed fear ‘freedom day’ as support deadlines near – why?

Self-employed workers were among the hardest hit by coronavirus but despite this, new research showed many freelancers and SMEs are concerned about the economy reopening from tomorrow. From July 19, dubbed by many to be “freedom day”, the majority of lockdown restrictions will be eased and this prospect is creating unease among many workers.

Recently, Simply Business, the small business insurance provider, surveyed 936 small business owners from across the UK.

The results of this survey highlighted “mixed feelings” for freedom day among SMEs and the self-employed.

Over half (53 percent) of those polled believe social distancing restrictions are being lifted too soon and risk another lockdown.

The concern is so great, almost one in three (30 percent) small business owners will retain social distancing and reduced capacity within their businesses.

READ MORE: SEISS alert: Claimants ‘are confused’ about how grants impact returns

Alan Thomas, the UK CEO at Simply Business, commented on these results.

Mr Thomas said: “No business, big or small, has been able to escape the impact of the Covid-19 pandemic. Sixteen months of restrictions, lockdowns, and uncertainty were always likely to take their toll.

“But the scale of the impact felt by the self-employed is abundantly clear from our latest research which shows Covid-19 will cost SMEs an estimated £126.6billion – double what owners predicted it would cost them when asked a year ago.

“Small business owners’ hopes for freedom day are at risk of turning to fears, with over half of SMEs saying restrictions are being lifted too soon.

“Given the rising number of cases, it comes as no surprise that there are strong calls for clearer guidance on how to safely manage a full reopening of businesses.

“Small business owners need clear, consistent guidelines but the onus on personal responsibility breeds confusion.

“SMEs aren’t public health experts with the ability to gauge the threat of a disease.

“SMEs account for over 99 percent of all British businesses and contribute £2trillion to our economy every year. They’ve been among the hardest hit by Covid-19 lockdowns and will prove central to our collective economic recovery.

“With one in 10 small business owners not confident in resuming trading after 19 July, it’s vital that we support small businesses through this latest – and possibly confusing – period of recovery from the pandemic.”

While it remains to be seen how businesses cope following freedom day, it should be remembered self-employed workers can continue to receive support through SEISS until the Autumn.

SEISS claims for the fifth set of grants can be made from late July onwards.

Support from SEISS will be available until September 30, 2021.

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This post originally posted here Daily Express :: Finance Feed

Self-employed to be hit as Boris Johnsons extends lockdown – new 'stimulus package' urged

Self-employed workers have been hit particularly hard by the pandemic, but new employment figures released from the ONS showed freelancers may be recovering from the effects of coronavirus. According to the ONS, the total number of freelancers in March had risen by 21,000 compared to the previous month.

This is the second consecutive month-on-month increase in self-employed numbers since the beginning of the pandemic.

However, IPSE warned there are still 500,000 fewer freelancers now than there were in the same period last year.

Andy Chamberlain, the Director of Policy at IPSE, commented on this and reflected on the additional challenges the self-employed may face in light of the recent lockdown extension.

He said: “The data this morning shows clear and welcome signs the self-employed sector is finally moving in the right direction.

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“Although overall numbers are still down by over 500,000 compared to the same time last year, we have now seen the second month-on-month increase in the number of self-employed since the beginning of the pandemic.

“The halt to the roadmap announced yesterday, however, may be a blow to this progress, and we continue to urge the Government to introduce a sectoral support and stimulus package to protect affected sectors such as events and the creative industry – and also give them the boost they need to get back on their feet once the economy fully re-opens.”

Yesterday, Boris Johnson announced there would be a short extension to reopening the economy in the face of new coronavirus variants.

This was undoubtedly disheartening for the British public but the Prime Minister assured it should be the last extension of its kind as the Government ramps up its vaccine commitments.

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As he detailed: “By Monday 19 July we will aim to have double jabbed around two thirds of the adult population including everyone over 50, all the vulnerable, all the frontline health and care workers and everyone over 40 who received their first dose by mid-May. And to do this we will now accelerate the 2nd jabs for those over 40 – just as we did for the vulnerable groups – so they get maximum protection as fast as possible.

“And we will bring forward our target to give every adult in this country a first dose by 19th July that is including young people over the age of 18 with 23 and 24 year olds invited to book jabs from tomorrow – so we reduce the risk of transmission among groups that mix the most. And to give the NHS that extra time we will hold off step four openings until July 19 except for weddings that can still go ahead with more than 30 guests provided social distancing remains in place and the same will apply to wakes.

“And we will continue the pilot events – such as Euro2020 and some theatrical performances. We will monitor the position every day and if after two weeks we have concluded that the risk has diminished then we reserve the possibility of proceeding to Step fout and full opening sooner.

“As things stand – and on the basis of the evidence I can see right now – I am confident we will not need any more than four weeks and we won’t need to go beyond July 19. It is unmistakably clear the vaccines are working and the sheer scale of the vaccine roll-out has made our position incomparably better than in previous waves.”

For self-employed workers who are still being hit by the pandemic, it is possible to receive continued support through SEISS.

A fifth set of grants, covering May to September 2021, will be open to claims from late July onwards.

These grants, as with the ones that came before them, will be taxable and paid out in a single instalment.

The Government details guidance for claiming these grants will be available by the end of June.

To be eligible for the fifth set of grants, a person must be a self-employed individual or a member of a partnership.

They must also have traded throughout the 2019 to 2021 tax years.

Claimants must also either:

  • 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

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National Insurance contributions changes 'in short-term' predicted for the self-employed

Commenting on the report, Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “The government’s reply to the ‘Tax after Coronavirus’ report was an emphatic ‘not now!’

“Some potential tax changes have been taken off the table entirely, while others have been pushed very firmly down to the other end of it.

“While the economy is still recovering, and we’re still uncertain whether new variants will divert the path out of the crisis, the government isn’t going to make any sudden moves.

“Nobody is going to touch pensions tax relief, capital gains tax, inheritance tax or stamp duty until we’re on a much firmer footing.

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SEISS: Self-employed must claim by June 1 or miss out – act now to get support

SEISS, or the Self-Employment Income Support Scheme as it is more formally known, was designed by the Government to help self-employed individuals affected by the pandemic. Offering a number of instalments, the most recent form of support has been issued through the fourth grant. However, according to HMRC, claims for the fourth grant must be made on or before June 1, 2021.
Before making a claim, self-employed people have been urged to check whether the impact of COVID-19 has indeed caused a significant reduction in their trading profits.

This must have been the case between February 1, 2021 and April 30, 2021. 

The Government explains: “HMRC cannot make this decision for you because your individual and wider business circumstances will need to be considered when deciding whether the reduction is significant.

“You should wait until you have a reasonable belief that your trading profits are going to be significantly reduced, before you make your claim.

“You do not have to consider any other coronavirus scheme support payments that you have received when deciding if you’ve had a significant reduction in trading profits.”

For example, if a cafe owner has had fewer customers due to restrictions and has only been able to offer take-away service, then she may reasonably believe this will significantly reduce her trading profits.

As a result, HMRC confirms, someone in this circumstance or similar will be eligible to claim the fourth grant. 

People who are eligible for the fourth grant will be able to claim their sum online through the Government’s website.

However, they will need certain information to hand in order to make this claim.

This includes:
  • National Insurance number
  • Self-assessment unique taxpayer reference (UTR) number
  • Government Gateway User ID and Password
  • Bank account number and sort code
  • Address

Individuals who are claiming this form of support for the first time, though, may need additional documentation for questions asked.

This could mean providing a UK passport, details of a credit file, a P60 and one of a person’s three most recent payslips.

Once a person has claimed the fourth grant for SEISS, and this has been approved, Britons can expect the money into their account within six working days. 

The fourth grant, however, is not the last form of support for the self-employed which is being offered by the Government.

From July onwards, individuals will be able to receive a fifth grant if they are eligible.

Details on this are set to be released by the Government in due course. 

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This post originally appeared on Daily Express :: Finance Feed

SEISS grant 4: When is the deadline to apply for self-employed grant?

“I’ve spoken about this a lot before, it’s worth up to £7,500, three months average profit from February to April.

“You must declare a reasonable belief of significant Covid profit reduction.

“Remember, for this grant, because they [HMRC] are accepting the most recent tax returns, many people who weren’t eligible for the earlier grants have been eligible for this.”

He added: “If you haven’t checked, do it soon because that deadline is coming.”

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This post originally appeared on Daily Express :: Finance Feed