Tax-Efficient Savings Update | Lall Ondhia

As the new tax year progresses, now is a good time review some of the tax-efficient savings incentives available which may help maximise potential returns.

Help-To-Save

The Help-to-Save scheme offers working people on low incomes a 50% bonus, rewarding savers with 50p for every £1 saved. Over four years, a maximum bonus of £1,200 is available on savings of up to £2,400. Savings limits are flexible and it is not necessary to pay in every month to get a bonus.

How much is saved and when is up to the account holder — the rules stipulate that investors can save between…


This guidance page was updated on 12 June to include details on how the scheme will change from 1 July. The first time you will be able to make claims for days in July will be 1 July, you cannot claim for periods in July before this point. 31 July is the last day that you can submit claims for periods ending on or before 30 June.

The Coronavirus Job Retention Scheme will close on 31 October 2020.

From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still…


Making Tax Digital For VAT: Second Phase Delayed

HMRC have announced the postponement of phase two of their Making Tax Digital (MTD) for VAT project.

This ‘phase two’ required businesses to digitally link their software all the way from entry of each transaction at one end of the process through to submission of the VAT return at the other, irrespective of how many pieces of software were used.

This means the rules on maintaining digital links from original transaction to tax return will not be enforced until 1 April 2021.

Businesses now have until their first VAT return period starting on or after 1 April 2021 to put…


The start of the new tax year often marks the beginning of an extremely busy time for those using the construction industry scheme (CIS). HMRC have issued a reminder of some of the help that is currently available to help ease the workload. Here is a summary of the top tips HMRC provide:

Digital repayments

HMRC offer a digital repayment offer for CIS customers. Claims can be made through the CIS I-form.

The I-form can be completed by either the agent or the taxpayer. They need to provide their name, address, employer references, the amount of repayment they are claiming…


The Housing Secretary on the government’s response to COVID-19 and the plan to safely restart, reopen and renew the housing market.
When the lockdown was announced in March, we changed the rules so that people could only move home if they thought it was “reasonably necessary”.

That meant that more than 450,000 buyers had to put their plans on hold.
And each month 300,000 tenancies come up for renewal as well.
A significant proportion of these will result in people needing to or wanting to move home. …


Chancellor Extends Furlough Scheme Until October 2020

The government’s Coronavirus Job Retention Scheme will remain open until the end of October,

The key points announced by Chancellor Rishi Sunak are:

  • Coronavirus Job Retention Scheme will continue until the end of October
  • furloughed workers across the UK will continue to receive 80% of their current salary, up to £2,500
  • new flexibility will be introduced from August to get employees back to work and boost the economy

The Government stated as we reopen the economy, we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work…


TOP-UP TO LOCAL BUSINESS GRANT FUNDS SCHEME

The Government has announced a discretionary fund has been set up to accommodate certain small businesses previously outside the scope of the business grant funds scheme.

The Business Secretary Alok Sharma and Minister for Regional Growth and Local Government, Simon Clarke spoke to local authorities in England yesterday to set out that up to £617 million would be made available.

This is an additional 5% uplift to the £12.33 billion funding previously announced for the Small Business Grants Fund (SBGF) and the Retail, Hospitality and Leisure Grants Fund (RHLGF), so up to £617 million. …


Corona Virus (COVID-19) Update

The Coronavirus (COVID-19) outbreak has brought an unprecedented array of challenges for businesses and their agents. Information is changing on an almost daily basis, making it difficult to keep up-to-date with business support measures and where to find the necessary guidance.

The first port of call for Covid-19 guidance for employees, employers and businesses is on the gov.uk website at https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19. In particular, this guide will help employers and businesses in providing advice to their staff on:

  • the Coronavirus Job Retention Scheme;
  • the Self-employment Income Support Scheme;
  • deferring VAT and Self-Assessment payments;
  • statutory sick pay relief package for small and…

Government Support For Businesses

The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.

This includes a package of measures to support businesses including:

  • a Coronavirus Job Retention Scheme
  • deferring VAT and Income Tax payments
  • a Statutory Sick Pay relief package for small and medium-sized businesses (SMEs)
  • a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
  • small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
  • grant funding of £25,000…

HMRC has announced that it will increase the maximum flat-rate tax deduction available where employees incur additional household costs where they work at home under homeworking arrangements, from £4 per week to £6 per week. This will take effect from April 2020.

Broadly, no tax liability arises where employers make payments to employees for reasonable additional household expenses, which the employee incurs in carrying out duties of the employment at home under ‘homeworking arrangements’.

‘Homeworking arrangements’ are arrangements between the employee and the employer under which the employee regularly performs some or all of the duties of the employment at…

Dhiren Mistry

Helping businesses grow through Digital, Media and Technology Solutions https://dmtsolutions.co.uk

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