Beverley Wakefield
The extension of the Self-Employed Income Support Scheme (SEISS) to those who have previously been left out in the cold so far is a much-needed boost, says the Co-Founder of a Derby accountancy firm.
Those who can show that they were trading in 2019-20 from their tax returns and had previously been excluded are now eligible for a Government grant, which was announced by Chancellor Rishi Sunak last week in the Spring budget.
“Chancellor Rishi Sunak made some surprising announcements and some less surprising during what is a relatively fair budget overall,” said Beverley, who set up Vibrant Accountancy with business partner Ian Ball in December 2019.
“We saw job and incomes protected via the extension of the furlough scheme to September and certainty over when employers will have to make their contributions – 10 per cent in July and increasing to 20 per cent for August and September – and there are further grants available for those self-employed individuals who missed out last time.
“They must, though, have filed a tax return form for the 2019-20 year. These grants relate to 80 per cent of average profits over a three-month period but the fifth and final grant is capped if your turnover hasn’t fallen more than 30 per cent.”
Those working in the industries who have been hit hardest by the pandemic – including hospitality, leisure, non-essential retail, personal care and gyms – can apply for grants of up to £18,000 while personal tax allowances, bands, VAT rates and capital gains have all remained static.
There were some new initiatives being pushed and one – the introduction of UK-wide Freeports – will benefit businesses right here in the East Midlands.
Goods that arrive into Freeports from abroad aren’t subject to tax charges which are usually paid to the Government. These taxes are only paid if the goods are moved elsewhere in the UK – otherwise, they are sent overseas without the charges being paid.
“If you are local to East Midlands Airport or one of the other seven new Freeports which have been revealed then incentives to trade in the area, including tax breaks and special tax rules, are great for business,” added Beverley.
“We heard of the introduction, too, of a super deduction, which will mean that for the next two years, if you spend money to invest in equipment, then a business can reduce its tax bill by 130 per cent the cost of the equipment.”
The expected Corporation tax increase to 25 per cent came but with some crucial caveats, meaning that businesses with profits of less than £50,000 will be able to keep the current 19 per cent and only those with profits of more than £250,000 attracting the new rate from 2023.
There was positive news, too, for homeowners with the stamp duty holiday being extended by three months and tax suspended on the first £500,000 of all property sales. The £20-a-week Universal credit top-up will continue for a further six months while those eligible to claim Working Tax Credit can claim a one-off £500 payment.
For the consumer, taxes on alcohol and fuel have been frozen for now – although these may well be increased as the Government aims to claw back some of the debt it has accumulated during Brexit and the Coronavirus pandemic.
“There will still be many who will be excluded from Rishi’s recovery budget,” said Beverley, “and we are more than happy to have an informal chat with anyone wondering how the budget may impact you.”
