Biz Extra

Published: August 10, 2020 | Updated: August 10, 2020

Top advice for your business from the experts at Inspire in our monthly Questions & Answers

By Andrew Diprose, editor

Chris Downing, Director of Inspire, the business and tax advisers, answers your questions.

Q: I hear that the there’s a tax review on the horizon, how can I best prepare?

A: Last month the Chancellor, Rishi Sunak, ordered a review of Capital Gains Tax (CGT), fuelling speculation that there could be an increase on the taxes paid when an asset is sold, such as property and shares.  This is likely to have an impact on small business and individuals, for example in the sale of shares or other assets which have increased in value between the point of purchase and sale.

Mr Sunak has also asked the Office for Tax Simplification to report on how CGT compares with other taxes.  One thought is that there is an alignment coming between Income Tax and CGT in the near future, seemingly creating a level playing field, and further impacting higher rate tax payers with assets to sell.

What we don’t know yet is any details on the timings; whether any CGT increases will be effective in the coming weeks, later in the autumn, or at the start of the next tax year.  But, what we do know is that any review rarely results in a decrease in tax.

Our advice is to review your plans, bearing in mind that the tax rates in place at the moment may not be around even in the next few months or next year.

Q: I’m self-employed, when can I submit my next claim for support?

A: The Self-Employment Income Support Scheme (SEISS) has been extended – in line with the Coronavirus Job Retention Scheme – to support self-employed individuals or a member of a partnership, if your business has been impacted by the pandemic.

The scheme allows you to claim a second and final taxable grant worth 70% of your average monthly trading profits, paid in a single instalment covering 3 months’ worth of profits, capped at £6,570 in total.

From 17 August you will be able to claim for the second grant, if your business has been adversely affected on or after 14 July 2020.  You can make a claim for the second grant if you’re eligible, even if you didn’t make a claim for the first grant.

You can check your eligibility for SEISS here.  As with the first grant, HMRC will contact you if you are eligible and work out how much you will receive.

In order to claim, you will need the following:

  • Unique Taxpayer Reference (UTR)
  • National Insurance number
  • Government Gateway ID and password
  • UK bank details

If you have any questions about SEISS or the claims process, the team at Inspire will be happy to help you.

Q: I’m looking to take on an apprentice in my business, but it’s a big commitment – are there any additional incentives available?

A: In short, yes there are – and there are a couple of options to consider:

As part of the government’s recent Plan for Jobs, the Chancellor announced a raft of measures to encourage employers to either bring employees back from furlough (the Job Retention Bonus), or create new jobs – specifically for younger people.

The new ‘Kickstart Scheme’ will provide funding for those age 16-24 claiming Universal Credit and at risk of long-term unemployment. The funding will be available for six-month job placements and will cover 100% of the national minimum wage (£4.55 for under 18s, £6.45 for 18 to 20-year-olds, and £8.20 for 21 to 24-year-olds), for 25 hours a week – with employers able to top-up this wage if they wish.

For apprenticeships, businesses will be given £2,000 for each new apprentice they hire under the age of 25, in addition to the existing £1,000 payment that the government already provides for new 16-18 year old apprentices.   You can read more about the funding available for apprenticeships here.

We’re continuing to run our free webinar programme – do take a look at details of our forthcoming webinars