Archive for March 2020

Covid-19 Update

Government has announced a last-minute postponement to the implementation of the Off-Payroll Tax to the private sector in light of the recent Covid-19 epidemic, with the legislation now due to be reintroduced in April 2021.

The decision was taken following significant pressure from contractors and campaigners – and indeed from within the House of Lords – who warned that the inevitable loss of work due to the virus for contractors deemed ‘inside IR35’ and effectively forced into ‘zero rights employment’ would prove catastrophic.

This is a deferral in response to the ongoing spread of Covid-19 to help businesses and individuals,” announced Chief Secretary to the Treasury, Steve Barclay MP to the House of Commons

“This is a deferral and not a cancellation, and the Government remains committed to reintroducing this policy to make sure people working like employees but through their own limited company pay broadly the same amount of tax as those employed directly.”

Introduced in 2000 IR35 is an anti-tax avoidance rule that applies to all contractors and freelancers who do not fall under HMRC’s definition of being self-employed)

OTHER UPDATES

Capital Gains Tax

The tax-free allowance on Capital Gains for the 2020/21 tax year is £12,300, which is an increase from the 2019/20 tax year amount of £12,000.

You pay most types of CGT you owe as part of your annual Self-Assessment.

However, if you have CGT to pay as a result of selling a property which is not your main residence, from 6th April 2020, you must pay the amount you owe to HMRC within 30 days of the date of disposal.

If you don’t already complete a Self-Assessment you will need to register with HMRC by 5th October following the end of the tax year in question to enable you to submit one.