Monthly Archives: January 2021

Hot Business News Today

You should file your tax return by January 31, despite HMRC extension

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Originally written by Anna Jordan on Small Business
Self-employed people have an extra month to file their tax return without penalty, but experts warn that you should stick to the original deadline.
Now you have until February 28 to file you return, as HMRC has decided to give businesses ‘breathing space’ amid COVID-19.
HMRC chief executive Jim Harra said: “We can reasonably assume most of these people will have a valid reason for filing late, caused by the pandemic.”
Why you should file your tax return by January 31 anyway
Warning about the potential outcomes of this news, Nimesh Shah, CEO at Blick Rothenberg, said: “There may be certain claims and elections that need to be submitted by January 31 (usually done via the tax return), and taxpayers need to be clear on the wider implications of filing after January 31 – they may not receive a £100 late filing penalty but there could be other consequences in relation to their tax affairs.”
He added: “I would still urge self-employed individuals to file their return by January 31, as they risk being excluded from future government support. The government has not yet announced the eligibility criteria for the fourth SEISS grant, but I expect that HMRC

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Hot Business News Today

Self-employed should pay equal tax with employees, says top thinktank

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Originally written by Timothy Adler on Small Business
The self-employed and small business owners should pay as much tax as the employed, influential think-tank the Institute for Fiscal Studies argues.
The current tax system does not really work for anybody, says the IFS in its report published today. The self-employed pay National Insurance and income tax at lower levels than their employed counterparts – often when they are doing the same job for companies.
The government is losing £15bn in tax revenue annually through the self-employed paying less tax, said the IFS.
>See also: You should file your tax return by January 31, despite HMRC extension
“There is a large, unjustified and problematic bias against employment and labour incomes and in favour of business ownership,” said the report. “The differential tax rates create inefficiency, unfairness, complexity and revenue loss.”
The IFS report said that for a job earning £40,000, a full-time employee could pay up to £4,300 more in tax than if the same work was done by someone with their own company.
And if you’re a self-employed partner in the financial services industry on a £308,000 average salary, you pay £20,000 less tax each year than someone doing the same job as a full-time employee.
Tax policy

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Hot Business News Today

The benefits of applying for a second CBILS loan

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Originally written by fundingoptions on Small Business
The Coronavirus Business Interruption Loan Scheme (CBILS) is proving to be a lifeline for businesses across the UK. Initially designed for those who’ve lost revenue or experienced cash flow disruption due to Covid-19, the scheme can also be used by businesses to grow and develop too. CBILS is part of a broad package of government support for UK businesses and employees.
CBILS loans of up to £5m are available on repayment terms ranging from three to six years. Businesses with a turnover of up to £45m can apply, and £4.97 billion of finance has been approved since the scheme began in March 2020.
If you’re one of the 82,000 plus companies who’ve already received a CBILS loan, did you know that you could be eligible for a second facility?
Who can apply for a second CBILS loan?
To be eligible for a second CBILS loan, you’ll have to meet the same criteria as you did for the first. For instance, you’ll need to show that your business would be viable were it not for Covid-19 and that it’s been negatively impacted by the pandemic.
Applying for a second CBILS loan can provide your business with the cash flow boost

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