Chancellor extends Self-Employed Income Support Scheme

29.05.20 / Insight posted in Articles, Coronavirus, covid-19, Tax

Unexpectedly the Chancellor has extended the Self-Employed Income Support Scheme (SEISS) for a further three months to 31 August 2020. Under the original SEISS covering the period from 1 March to 31 May, self-employed individuals were able to claim a grant worth 80% of their average monthly trading profits, paid out in a single instalment…

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Chancellor’s phased exit from furlough announced

29.05.20 / Insight posted in Articles, Coronavirus, covid-19, Tax

The rules covering the final three months of the Coronavirus job retention scheme have finally been announced. There are three key areas: The amount of the grant will be reduced on a phased basis from 1 August as follows: The job retention scheme will be closed to new entrants on 30 June. For an employee…

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FT live Q&A: Tim Stovold on wealth tax implications post-crisis

20.05.20 / Insight posted in Tax, MKS News

FT Money calls on Tim Stovold to answer readers’ questions on the Coronavirus bailout by the government. Responding to a question on defined benefit pension schemes, Stovold said: “If a wealth tax were implemented based on the capital values of assets, it wouldn’t really work with DB schemes so a possible alternative would be to…

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Supporting homeworking employees: tax reliefs available to them

19.05.20 / Insight posted in Articles, Brochures, Tax

With the announcement that schools will close to most pupils, almost everyone who can work at home will be doing so from 23 March if they are not already. This follows the PM’s call to “stop non-essential contact with others and stop all unnecessary travel”. Setting aside the logistical, technological and data security issues of…

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Not for profit VAT update for Coronavirus

14.05.20 / Insight posted in Articles, Operations, Tax

Coronavirus VAT changes Several VAT relaxation measures have been implemented by HMRC to reflect the current Coronavirus pandemic. If you are a UK VAT-registered organisation and have a VAT payment due between 20 March 2020 and 30 June 2020, you have the option to: defer the payment until a later date, or pay the VAT…

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Coronavirus: new 100% government-backed bounce back loan scheme

29.04.20 / Insight posted in Articles, Coronavirus, Operations, Tax

In another measure designed to ease pressure on businesses affected by the Coronavirus crisis and keep small businesses operating, the government announced on 27 April a new 100% government-backed loan scheme for small and medium businesses. Eligible businesses will be able to borrow between £2,000 and £50,000 Loans will be interest-free for the first 12…

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Mitigating the impact of Coronavirus on earn-outs

22.04.20 / Insight posted in Articles, Coronavirus, Operations, Tax

Many shareholders of marketing services and media businesses will be familiar with the concept of an earn-out in the context of a company sale. An earn-out arrangement involves the buyer paying a certain percentage of the overall deal value at completion, with the remainder due to be paid over a period of time. Normally, this…

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Low asset values affecting inheritance and capital gains tax

21.04.20 / Insight posted in Articles, Coronavirus, Tax

The current economic climate has seen the value of businesses, investments and property fall. While the future is still uncertain, it would be good to consider how to take advantage of depressed asset values. When market values are low is a good opportunity to gift assets to family members that may have otherwise attracted a…

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Managing EMI options in the current crisis

21.04.20 / Insight posted in Articles, Coronavirus, Tax

Now that another three weeks of lockdown is under way, it is a good time to consider the impact that this will have on company valuations, particularly in connection with share options. Private company values in virtually all cases will undoubtedly have fallen. Here, we explore four key issues and offer suggested actions. In the case…

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Understanding and maintaining company credit score

20.04.20 / Insight posted in Articles, Coronavirus, Tax

The amount of credit SMEs can obtain is usually linked to its credit rating. Exactly how credit reference agencies (CRAs) calculate ratings for business has always been a closely guarded secret and results in either joy or frustration depending on rating results. SMEs know all too well that having a good credit rating should allow…

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