Increase in corporation tax expected

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The chancellor is expected to announce a rise in corporation tax from 19% to 23% at the next budget.

Clearly the government has to raise money to pay for the furlough scheme, but is this the right way to do it?

SME companies have been going through a tricky time as it is already, and now profits will be squeezed further going forward.

If you want to discuss how this will impact your business, give us a call on 0203 151 2354.

AllianceCA – keeping the taxman away

 

Grants for small businesses

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Are you aware of all the grants and funding that are available for small businesses like yours?

At times like these it’s worth looking at all the grants that you may be eligible for. And there are a number of ways you can see what’s out there.

For instance, you could hire a external consultant to help you. Alternatively, you could go to one of the excellent third party websites out there like www.moneysavingexpert.com and see what they have for you there.

Sometimes the best answers are the simplest – you can find all grants on the government’s own website, specifically at Finance and support for your business – GOV.UK (www.gov.uk)

So if you have some free time in the lead up to Xmas and the new year (and given that lots of shops are closed and we can’t visit family and friends), take a look and see what funding is out there, and whether it has your name on it.

AllianceCA are there to help clients apply for funding and grants. Firstly, we can provide support in the form of business plans, cashflow forecasts and any other ad hoc financial analysis that you need. Secondly, we have experience of supporting funding applications from everything from bounce back loan to VC funding.

At times like these, funding for small businesses is key to helping SMEs survive 2020 and thrive in 2021.

If you’d like to find out more then get in touch with us here London Accountant | Chartered Accountant London | AllianceCA

 

Want to find out why it’s a good time to buy a house?

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As part of the ongoing support during the COVID-19 crisis, the Chancellor announced a temporary reduction to Stamp Duty Land Tax (SDLT) on residential property in England and Northern Ireland. Want to know the details? Then read on…⁠
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The new measures apply from 8 July 2020 until 31 March 2021.⁠
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The current Residential SDLT threshold of £125,000 will rise to £500,000. This means that taxpayers who do not already own a residential property will pay no SDLT if they purchase a house for £500,000 or less.⁠
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The residential property Higher Rate of SDLT will be reduced to 3% for buyers of second properties costing up between £125,001 and £500,000.⁠
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The higher rate applies to residential property purchases made by companies as well as individuals.⁠
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With mortgage rates at record lows, and now this reduction in stamp duty, its a great time to get on the property ladder. ⁠
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At AllianceCA we love speaking about property tax – give us a call if you would like to discuss it too. ⁠
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#HMRC #stampduty #AllianceCA #tax #charteredaccountants

Self Employment Income Support Scheme Extended!

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Great news for if you are self employed. ⁠SEISS support scheme has been extended. Self employed support extended ⁠

The Self-Employment Income Support Scheme has been extended by a further, and final, three months at a reduced rate of 70% of average monthly trading profits.⁠ ⁠

The scheme initially ran for three months to cover profits lost by the self-employed during March to May 2020.⁠ ⁠ Under the second and final round, intended to cover June, July and August, claims are to be reduced to the lower of £6,570 and 70% of average monthly profits.⁠

⁠ You do not need to have made a claim for the first period to be able to make a claim for the second grant, but as with the first, your business must have been adversely affected by Coronavirus.⁠

Full details can be found by clicking here

AllianceCA makes sure all our clients get useful and practical tax advice that they can act on. ⁠ ⁠

Come and have a word. ⁠ ⁠

#AllianceCA #tax #SEISS #greatadvice #thankyouNHS

Government Bounce Back Loans are now available

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It’s finally hereFollowing the criticism of the difficulty in applying for the government’s earlier Coronavirus Business Interruption Loan, the government has now launched it’s bounce bank loan scheme, which is reputed to be far quicker and simpler to apply for.

The attractive points of this loan is that it is interest free for 12 months, and 100% guaranteed by the government with no personal guarantees required. Full details are below:

Please find below details of the government’s bounce back loan scheme. You can approach the majority of high street bank with regards to borrowing.

 

What is it and how can I get hold of the money?

The Bounce Back Loan Scheme (BBLS) provides lenders with a government-backed guarantee of 100% to offer loans of up to £50,000 to businesses across the UK that are losing revenue as a result of the COVID-19 outbreak.

It is administered by the British Business Bank and made available to businesses via the majority of high street banks. It is currently open until 4 November 2020.

 

Key features of the scheme

  1. From £2,000 to £50,000 facilities, up to 25% of turnover, for eligible businesses, regardless of annual turnover.
  2. Facilities: term loans
  3. Repayment terms: six years, and early repayment is permitted
  4. Interest rate: 2.5% per annum. No interest is payable in the first 12 months.
  5. Personal guarantees: No personal guarantees. No recovery action can be taken over the borrower’s main home or primary personal vehicle but, for sole traders or partnerships, other personal assets may be at risk of recovery action.
  6. 100% guarantee: The scheme provides the lender with a government-backed guarantee (100%) against the outstanding facility balance (principal and interest).
  7. The borrower always remains 100% liable for repayment of the debt.
  8. The borrower must self-declare they meet the eligibility criteria and make certain confirmations.

 

Eligibility and additional features

Be careful as some of the usual consumer protections do not apply, including those under the Consumer Credit Act 1974.

 

A business must confirm:

  1. It is a UK limited company or partnership, or tax resident in the UK, that was carrying on business on 1 March 2020
  2. More than 50% of its income is derived from its trading activity
  3. The loan will not be used for personal purposes but as an economic benefit for the business
  4. Whether or not on 31 December 2019 it was a ‘business in difficulty’ and does not breach state aid restrictions. If it was a ‘business in difficulty’ then, in addition, the facility will not be used for export-related activities. Get in touch if you want more details on this.
  5. It is not in bankruptcy, debt restructuring proceedings or liquidation
  6. Its understanding of losses that may be incurred, impact on credit rating, reduced consumer protection and that the lender will not assess affordability
  7. A business will be subject to standard checks such as customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. A lender may require other information eg self assessment tax returns.

Businesses that have utilised the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Coronavirus Corporate Financing Facility (CCFF) cannot also use the BBLS unless that loan will be refinanced in full by the BBLS.

If you’d like to find out more, please get in touch with Sharon, 0203 151 2354 .