Covid-19: HMRC provides more detail re self-employed support scheme
HMRC has published guidance on how it will calculate total income and trading profits for the support scheme, designed to provide help for the self-employed who have lost profits due to coronavirus.
To be eligible for the scheme applicants must have trading profits of no more than £50,000 which make up more than half of their total income for either the tax year 2018/19, or the average of the tax years 2016/17, 2017/18 and 2018/19.
Total income is the sum of monies received from earnings, trading profits, property income, dividends, savings income, pension income and miscellaneous income including social security income.
HMRC will use the figures provided on tax returns for the total trading income (turnover), then deduct any allowable business expenses and capital expenditure. However, they will not make deductions from trading profits for any losses brought forward from previous years, or for an individual’s personal allowance.
If an individual has more than one trade then all profits (or losses) will be added together to work out the trading profit.
We will update you further & of course assist you with this, as we learn more.
More time for 30-day reporting of CGT
HMRC has confirmed it will not charge late filing penalties for reports of (CGT) on disposals of UK residential property by UK residents made before 31 July 2020.
To help those selling properties familiarise themselves with the changes, HMRC is allowing a period of time to adjust. For UK residents, this means transactions completed between 6 April and 30 June 2020 and reported up to 31 July 2020.
Transactions completed from 1 July 2020 onwards will receive a late filing penalty if they are not reported within 30 calendar days and interest will accrue if the tax remains unpaid after 30 days.
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