Originally written by Timothy Adler on Small Business
One million of the UK’s 4.5m self-employed face having to prepay tax bills higher than what they actually earned this year.
Many freelancers pay self-assessment tax bills on account twice a year, with the first prepayment falling due this January.
This is despite the Covid pandemic decimating many self-employed profits since March.
>See also: MPs to fight Sunak over move to hike national insurance for self-employed
The problem is that prepayments are based on the previous year’s profits, in this case what the self-employed earned in 2019-20 – before the pandemic hit.
TaxScouts, an online self-assessment tax service provider, estimated 1m people could be hit with an inflated tax bill because payment on account is based on the previous year’s earnings.
“While this is well and good in normal times, it doesn’t take into consideration the huge loss of earnings that so many of the self employed will have faced during the pandemic,” said TaxScouts.
However, anticipating the problem, HMRC has allowed the self-employed to defer payment on account and to request a reduction in their tax bill if they are facing financial difficulty and know their earnings will be down.
>See also: MPs urge Government to do more to help
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1m self-employed face having to pay tax bill larger than what they earnt
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
One million of the UK’s 4.5m self-employed face having to prepay tax bills higher than what they actually earned this year.
Many freelancers pay self-assessment tax bills on account twice a year, with the first prepayment falling due this January.
This is despite the Covid pandemic decimating many self-employed profits since March.
>See also: MPs to fight Sunak over move to hike national insurance for self-employed
The problem is that prepayments are based on the previous year’s profits, in this case what the self-employed earned in 2019-20 – before the pandemic hit.
TaxScouts, an online self-assessment tax service provider, estimated 1m people could be hit with an inflated tax bill because payment on account is based on the previous year’s earnings.
“While this is well and good in normal times, it doesn’t take into consideration the huge loss of earnings that so many of the self employed will have faced during the pandemic,” said TaxScouts.
However, anticipating the problem, HMRC has allowed the self-employed to defer payment on account and to request a reduction in their tax bill if they are facing financial difficulty and know their earnings will be down.
>See also: MPs urge Government to do more to help
Hot Business News Today
Are we witnessing the death of the events industry?
by Natalka Antoniuk • • 0 Comments
Originally written by Natalka Antoniuk on Small Business
As we know, the events industry is suffering at the hands of Covid-19. Let’s not dwell on that.
The #WeMakeEvents campaign has proven the strengths of the industry. The events workforce is highly confident that, in time, the events industry will thrive again. Until then all they can do is wait and hope that the government recognises its value.
But what about those companies that can’t wait?
An industry survey conducted by Feast It found that 61 per cent of businesses operating within the events industry have six months left to survive. Most of these businesses have not raised an invoice since March.
This might be why they are throwing everything they have at what was once believed to be a passing trend. Virtual events have dominated the lives of many event planners this year. And now businesses are adapting their product offering to tailor towards this niche.
As the UK’s most popular venue, ExCel London, announces the opening of its virtual event studio, can we assume that this marks the end of the events industry?
First to close
The events industry was the first to be shut down. In March, when Boris Johnson announced a ban on mass gatherings,
Hot Business News Today
Are we witnessing the death of the events industry?
by natalkaantoniuk • • 0 Comments
Originally written by natalkaantoniuk on Small Business
As we know, the events industry is suffering at the hands of Covid-19. Let’s not dwell on that.
The #WeMakeEvents campaign has proven the strengths of the industry. The events workforce is highly confident that, in time, the events industry will thrive again. Until then all they can do is wait and hope that the government recognises its value.
But what about those companies that can’t wait?
An industry survey conducted by Feast It found that 61 per cent of businesses operating within the events industry have six months left to survive. Most of these businesses have not raised an invoice since March.
This might be why they are throwing everything they have at what was once believed to be a passing trend. Virtual events have dominated the lives of many event planners this year. And now businesses are adapting their product offering to tailor towards this niche.
As the UK’s most popular venue, ExCel London, announces the opening of its virtual event studio, can we assume that this marks the end of the events industry?
First to close
The events industry was the first to be shut down. In March, when Boris Johnson announced a ban on mass gatherings, planners
Hot Business News Today
Just when you thought it couldn’t get worse, business rates return in April
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government needs to say whether the current one-year business rates holiday for retail and hospitality businesses is going to be extended.
So says John Webber, head of business rates of property consultancy Colliers International, which has monitored the number of business rates appeals flooding the Valuation Office Agency (VOA), part of HM Revenue & Customs, which is tasked with processing complaints as part of a three-stage “check, challenge, appeal” process.
According to Colliers, some 170,000 businesses have taken the first step towards appealing against their rates since the pandemic began in the UK in March. That is more than the total number in the three previous years, during which 159,000 queried their rates.
>See also: Chancellor Rishi Sunak may scrap business rates in favour of a land tax
Partly, it’s the government’s own fault that the VOA is so swamped with business rates appeals.
Businesses are being forced into challenging ratings assessments now because the government has yet to announce whether the one-year business rates holiday for retail and hospitality announced in March is going to be extended.
Business rates are a tax on properties that are used for commercial purposes and are charged based on an estimate
Hot Business News Today
Just when you thought it couldn’t get worse, business rates return in April
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government needs to say whether the current one-year business rates holiday for retail and hospitality businesses is going to be extended.
So says John Webber, head of business rates of property consultancy Colliers International, which has monitored the number of business rates appeals flooding the Valuation Office Agency (VOA), part of HM Revenue & Customs, which is tasked with processing complaints as part of a three-stage “check, challenge, appeal” process.
According to Colliers, some 170,000 businesses have taken the first step towards appealing against their rates since the pandemic began in the UK in March. That is more than the total number in the three previous years, during which 159,000 queried their rates.
>See also: Chancellor Rishi Sunak may scrap business rates in favour of a land tax
Partly, it’s the government’s own fault that the VOA is so swamped with business rates appeals.
Businesses are being forced into challenging ratings assessments now because the government has yet to announce whether the one-year business rates holiday for retail and hospitality announced in March is going to be extended.
Business rates are a tax on properties that are used for commercial purposes and are charged based on an estimate
Hot Business News Today
Most banks not allowing small businesses to open bank accounts
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Many banks have stopped accepting new applications for business bank accounts since the coronavirus pandemic surged in the UK.
This is predominantly down to increased demand for government-backed emergency loans like Bounce Back Loans and the Coronavirus Business Interruption Loans. Banks are focusing on providing these and tending to their existing customers’ most pressing needs.
Which banks are still offering business bank accounts?
SmallBusiness.co.uk has spoken to the following banks to find out where they stand on accepting business bank account applications.
HSBC
HSBC closed applications for new business bank accounts on September 30.
An HSBC UK spokesperson said: “Since the introduction of the Bounce Back Loan Scheme, we have given over £12bn of lending to the UK’s businesses, as part of an overall £20bn package supporting our business and personal customers. As one of the only banks that remained open to applications from all UK businesses since the scheme’s launch, we received a huge level of demand. With the scheme closing on 30 November, we need to focus our resources on fulfilling existing applications. We are no longer accepting new applications for Bounce Back Loans from companies that don’t have an existing HSBC business account and we will
Hot Business News Today
Most banks are not allowing small businesses to open bank accounts
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
Many banks have stopped accepting new applications for business bank accounts since the coronavirus pandemic surged in the UK.
This is predominantly down to increased demand for government-backed emergency loans like Microbusiness Bounce Back Loans and the Coronavirus Business Interruption Loans. Banks are focusing on providing these and tending to their existing customers’ most pressing needs.
Which banks are still offering business bank accounts?
SmallBusiness.co.uk have spoken to the following banks to find out where they stand on accepting business bank account applications.
HSBC
HSBC closed applications for new business bank accounts on 30th September.
An HSBC UK spokesperson said: “Since the introduction of the Bounce Back Loan Scheme, we have given over £12bn of lending to the UK’s businesses, as part of an overall £20bn package supporting our business and personal customers. As one of the only banks that remained open to applications from all UK businesses since the scheme’s launch, we received a huge level of demand. With the scheme closing on 30 November, we need to focus our resources on fulfilling existing applications. We are no longer accepting new applications for Bounce Back Loans from companies that don’t have an existing HSBC business account and we
Hot Business News Today
£40m funding for hospitality firms in Scotland – what we know so far
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The Scottish Government has confirmed that there will be a £40m funding package for hospitality businesses affected but the latest restrictions.
“We have decided to put further restrictions on hospitality, but to offer significantly more financial help,” said First Minister Nicola Sturgeon in her announcement yesterday (7th October).
Details of the package haven’t been laid out yet, but we’ll update this article when we know.
What are the new COVID-19 restrictions in Scotland?
Pubs and restaurants in the central belt will be forced to close from 18:00 from Friday for 16 days (from 10th-25th October). They will only be able to offer takeaways.
This applies to the Greater Glasgow and Clyde, Lanarkshire, Ayrshire and Arran, Lothian and Forth Valley health board areas.
As for the rest of the country, hospitality businesses will only be allowed to operate between 6am and 6pm and no alcohol is allowed to be served inside. Evening meals can be served.
Licensed premises can still serve alcohol outdoors until the 22:00 curfew that was announced last month.
The rule of six still applies indoors and outdoors for hospitality venues.
Alcohol can still be served at weddings and funerals, but attendance is limited to 20 people. They must take
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Rishi Sunak plans grants for small businesses hit by hard lockdown
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Chancellor Rishi Sunak is drawing up plans for new Treasury support for small businesses who find themselves closed because of hard lockdown.
Pubs and restaurants would be forced to close, as well as possibly non-essential retailers, at the top level of a “three-tier” lockdown strategy, which could be announced as soon as tomorrow.
Prime Minister Boris Johnson is expected to announce a simplified three-tier system of local, regional and even a national lockdown. The system has yet to be finalised, with sources telling the Times that it was “stuck in No 10”, despite hurdling coronavirus infection cases in the North and scientists urging a national “circuit-breaker”.
>See also: HSBC will not accept any more Bounce Back Loan applications
According to the draft traffic-light-style plan, obtained by the Guardian, the top-tier lockdown would include closure of hospitality and leisure businesses.
Mr Sunak has already provided grants of £1,500 to businesses forced to close under local lockdowns and said this week the government was prepared to move with “pace and scale” to deal with new problems as they arose during the crisis.
Lockdown grants
In September, the government announced that small businesses affected by a local lockdown could claim for a £1,000