Some clients have asked us if there is anything they should be doing now, to help themselves or their businesses during the current crisis. We’ll continue to provide advice to our clients on a case-by-case basis; however, we thought some of these practical steps may be helpful to a wider audience.
- Talk to your suppliers about what support they may be able to offer, as you may be able to manage cashflow by deferring certain payments. For example, if you lease a vehicle, some of the large manufacturers are offering payment deferrals.
- Keep a log of the time spent working from home. If this is significantly more than usual, you may be able to claim more costs against your taxable income for home office costs.
- Get your tax return in early, especially if you think you may be due for a refund. Filing your return early doesn’t mean you have to pay any tax due earlier, but it will bring forward any tax refunds due.
- If you are expecting to make a loss in the current year (sole trader or limited company), this could be carried back to the previous year, generating a refund for tax already paid.
- If you are a start-up sole trader or partnership and make a loss in this tax year, this can be carried back and set against general income for the last three tax years. As general income includes employment income, you may be able to claim a refund against tax paid through PAYE in a previous job.
- The self-employed income support scheme, recently announced by the Chancellor will only apply to people who have filed a 2018/19 tax return. Late filers have been given an additional four weeks to file, so if you haven’t yet filed for 2018/19, this needs to be done before April 23rd, for you to qualify for the scheme.
We believe that it’s really important for businesses to have the information they need to navigate their way through this crisis. Should you need information or advice on the above points or any of the recent schemes announced by the government, please contact us.