soletrader Archives - Page 8 of 9

Did your pregnancy affect your claim?

Posted on August 12, 2020 | by Jade Donno

Ask HMRC to verify you had a new child which affected your eligibility for the self-employed income support scheme.

If you are self-employed or a member of a partnership, and having a new child affected the trading profits or total income you reported for the tax year 2018 to 2019, use the HMRC form to ask them to verify that you had a new child.

If you are already eligible for the grant based on your 2016 to 2017, 2017 to 2018 and 2018 to 2019 Self-Assessment tax returns, how HMRC will work out your grant amount will not be affected.

If you are not already eligible you can ask HMRC to check if you had a new child which either:

affected your trading profits or total income you reported for the tax year 2018 to 2019
meant you did not submit a Self-Assessment tax return for the tax year 2018 to 2019

For this scheme having a new child is any of the following:

being pregnant
giving birth (including a stillbirth after more than 24 weeks of pregnancy) and the 26 weeks after giving birth
caring for a child within 12 months of birth if you have parental responsibility
caring for a child within 12 months of adoption placement

You must have been self-employed in the tax year 2017 to 2018 and have submitted your Self-Assessment tax return on or before 23 April 2020.

You must also meet all other eligibility criteria.

What is the job retention scheme bonus?

Posted on August 11, 2020 | by Jade Donno

Employers will be able to claim a one-off payment of £1,000 for every employee they have previously received a grant for under the Coronavirus Job Retention Scheme (CJRS), and who remains continuously employed through to the end of January 2021.

To be eligible, the employee must have received earnings in November, December and January, and must have been paid an average of at least £520 per month, and a total of at least £1,560 across the three months.

As the employer, you will be able to claim the bonus after you have filed PAYE information for January 2021, and the bonus will be paid from February 2021. More detailed guidance, including how you can claim the bonus online, will be available by the end of September.

What you need to do now

If you intend to claim the Job Retention Bonus you must:

ensure all your employee records are up to date
accurately report employees’ details and wages on the Full Payment Submission (FPS) through the Real Time Information (RTI) reporting system
make sure all of your CJRS claims have been accurately submitted and you have told HMRC about any changes needed (for example if you have received too much or too little).

Reminder of changes to CJRS

From 1 August 2020 CJRS continues to provide grants for furloughed employees but no longer funds employers’ National Insurance (NI) and pension contributions. You now have to make these payments from your own resources for all employees, whether furloughed or not. HMRC guidance has been updated to reflect these changes.

Making sure your data is right

It is important that you provide the data HMRC need to process your claim. Payment of your grant may be at risk or delayed if you submit a claim that is incomplete or incorrect. HMRC may be in touch to request employee data if it’s missing from your previous claims.

National Insurance numbers

You need to provide a National Insurance number (NINO) for all employees as part of your CJRS claim. The only exception is in the very limited circumstances where an employee genuinely does not have a NINO, for example if they are under 16 years old.

If you are claiming for an employee whose NINO you do not currently know, you can check their number by searching GOV.UK for ‘Check a National Insurance Number using basic PAYE Tools’.

HMRC can no longer accept claims for fewer than 100 employees by phone where you do not have all employee NINO’s unless the employees you are claiming for genuinely do not have these.

Claimed too much in error?

If you have claimed too much for a CJRS grant and have not repaid it, you must notify HMRC and repay the money by the latest of whichever date applies below:

90 days after receiving the CJRS money you’re not entitled to
90 days from when circumstances changed so that you were no longer entitled to keep the CJRS grant
20 October 2020 if you received CJRS money you are not entitled to or if your circumstances changed on or before 22 July.

How to network when you can’t network in person

Posted on August 3, 2020 | by Jade Donno

Small to medium-sized businesses have to go the extra mile to stand out from competitors, particularly when those competitors can afford the best advertising campaigns. In the past we could compensate with networking, by attending conferences, trade fairs, or local groups. Now those options have gone, how can you compete with bigger businesses?

In many ways, the principles of virtual networking and prospecting are the same, but unlike a crowded coffee break, you have to work harder to strike up a conversation. Online you need to build up small talk, such as likes and shares, over a longer period of time.

The best place to network depends on who you need to talk to. People tend to use LinkedIn to sell professional services, but if your target market is people and businesses in your area, you should be able to find Facebook groups covering the parts of the country that you would like to sell to. Instagram and Twitter can be more difficult to network on, so we’ve focussed on Facebook and LinkedIn.

Get your profile right

Use a photo that shows your face clearly, or if you’re very shy, something innocuous. In person we all build rapport by talking to faces, whether we’re good at reading body language or not. When people interact with posts and comments, they’re building a rapport with your photo, so pick an image that you’re comfortable with as your work persona and you’ll attract the kind of people you want to work with.

You should also have a look at your profile as other people will see it and think about what it says to potential clients.

Follow any group administrator rules

When you know who you’d like to interact with and where, you can find and join as many groups as possible on LinkedIn and Facebook. The first rule for any social media platform is to make sure you follow the rules of any group you join. If a group states that you aren’t allowed to advertise your business, be careful about how your posts might appear. You could leave a bad impression if you get told off or banned by group administrators!

It’s still worth joining groups so you can see your competitors, find out what your potential clients are interested in and contact those that you’d like to work with.

Be visible

Whichever platforms you use, it’s best to post regularly. Not posting on a social media platform is worse than being a wallflower at an in-person event, because no one can see you at all virtually.

On LinkedIn and Facebook, the usual advice is that it’s better for your visibility if you write a new post on your own newsfeed, but to build relationships with potential clients, you need to be more generous. Sharing, liking and commenting on the posts of people you’d like to network with helps their visibility at the same time as introducing you to their circle.

Comment sections are a great way to network with people that you aren’t already connected with. They’re a little like small talk in the queue for refreshments, except that you don’t need to find your business cards while holding a coffee. Having had a discussion, it’s much easier to send a message to talk further.

Show them that you’re worth talking to

Since you can’t usually post traditional adverts in virtual groups, being helpful is a more subtle way of advertising your expertise. People won’t read a long explanation and you don’t want to give your expertise away for free, so a brief answer followed by “if you need more help, please contact me” is enough.

Remember to specify how they should contact you, so it’s as easy as possible for them to follow up. If they have to stop and think “did they mean email or private messaging?”, they’re less likely to follow through.

Look for mutual contacts

All of the main social media channels allow you to see friends of friends, or second connections, if those people have opted in. 15 years ago someone might have hesitated to ask a contact to introduce them to a new contact virtually, but it’s normal now that so many businesses use social media platforms for marketing and networking.

Return favours and share goodwill

Offline it can be difficult to make introductions unless the two people you think could work together are in the same room. The beauty of online networking is that it takes seconds to tag someone in a comment and say “this person could help you”. It may seem a small gesture at the time, but every little introduction is a step on the way to success for you and anyone that joins your network.

Business bounce back loan - boy on trampoline

Business Bounce Back Loans

Posted on August 3, 2020 | by Jade Donno

Business Bounce Back Loans – what are they and should you apply for one?

Since the scheme launched in May 2020 (just 3 months ago), more than 860,000 bounce back loans have been issued. This means that thousands of small businesses who are struggling due to the coronavirus have applied for and received financial help; help of which will hopefully get them through this turbulent time. So what are bounce back loans? Here is what you need to know about them including a list of questions to help you decide whether you should apply for one.

Business Bounce Back Loans

While there has been a lot of financial support being dished out due to the impact of the Coronavirus, there are small businesses that can’t access this funding quickly enough; self-employed people who don’t qualify for the Self-Employment Income Support Scheme, and limited company directors who have fallen through the cracks.

For these businesses and individuals, the ones who aren’t covered by other schemes, bounce back loans are a saving grace.

So what are bounce banks loans?

Bounce back loans are 100% government-backed loans which include the following:

Loan amount from £2,000-£50,000 or 25% of your annual turnover (whichever is lower)
No interest charged in the first 12 months (the Government covers the first year)
No repayments needed in the first 12 months
After 12 months, all banks charge a fixed 2.5% interest rate/year
6-year loan with no early repayment charges
Straightforward application and quick access to funds

Obviously, your business will always remain responsible for the repayment of the whole debt amount, but bounce back loans will provide you with significant support over the next 12 months.

Should I apply?

To help you decide whether you should apply for a bounce back loan, here are some questions for you to consider. If your answer is yes to a number of these questions then you are eligible to receive support.

Am I a UK-based business that has been impacted by Covid-19?
Was my business established before 1 March 2020?
Is this the only support that I am applying for (with the exception of personal support)?
Do I need financial help in addition to the self-employment income support grant and universal credit?
Do I need to repay existing finance, i.e. lenders?
Do I need help to pay investments or working capital for the business – including bills, running costs and wages?
Do I need capital immediately (within 24 hours)?

Things to note

If you would like to apply for a bounce back loan, all you have to do is contact a bank directly and fill in a short online application. You will need details of your annual turnover, your account number, the amount you wish to borrow, a copy of your tax return, and proof that your business has been negatively impacted by Covid-19.

In terms of repayments, there are no interest or repayments in the first year but after those 12 months, you will need to make 60 repayments of the amount borrowed. Unlike a personal loan, however, you won’t have fixed payments. Each month, you’ll repay 1/60^th of the capital plus the interest that has accumulated that month. This means that the amount you owe will decrease over time and in turn, your repayment amount will decrease too.

If you would like to know more about the Business Bounce Back Loans book in a no-obligation free meeting TODAY!

How to deal with nit-picking clients who are asking for a discount

Posted on July 20, 2020 | by Jade Donno

Are you finding that some of your clients, some who have previously been good clients, have suddenly become quite fussy? Maybe they have been getting obsessed with the tiniest of mistakes when previously they would have just breezed over it, or maybe they are finding new issues that have never come up before. Whatever problems that are arising, here is how to deal with nit-picking clients, especially if they are asking for a discount.

The global pandemic has caused a considerable amount of stress. Some obvious, such as financial and health problems, and some not so obvious, emotions that can bubble and brew under the surface affecting our daily lives without us even realising.

As you can imagine, the net result of 3-4 months of anxiety and stress is starting to take its toll and people are trying to take control of what they can to ease some of that pressure.

Finances is a big one. Many people are worrying whether their businesses will bounce back, whether they’ll have a job to go back to, and their financial future, and to try and take control of this, many are now looking for that discount where they can. They are looking to shed overheads and for any opportunity to lighten the pressure of such a tight cashflow.

If you have clients who are asking for discounts, who are highlighting mistakes that you’ve made or who are trying to get more out of you, here are 3 things that you should do:

Apologise – if you’ve made a mistake, acknowledge it. Put your hand up and own it and reassure them that you are investigating how it happened as well as putting in the necessary measures to prevent it from happening again.
Offer additional value – don’t offer a physical discount, unless you’ve made a mistake that is of great magnitude. Always look to offer extra value instead. Is there any other way that you can help your client? Is there an add-on or service that doesn’t require too much from you that you can offer to the client for the same price?
Listen and empathise – with how stressful it’s been, everyone is having a difficult time in their own way and they just want someone who can empathise and acknowledge this. If you can show them that you care and maybe even help them to see that this small mistake or issue they see is causing no material loss to them overall, that might be all they need.

It’s a difficult situation to be in, to have clients asking for discounts, but be strong. You are providing a service and you deserve to be paid for that service. It might only take an apology or for you to show your client that you want to help them in other ways.

If you start offering discounts, you will start training your clients to ask for discounts every time they see a mistake or if they’re not completely satisfied. Appeasing them now will only cause further issues for you down the line, so offer additional value and listen to their worries. They’ll soon start to value what you’re doing for them and you’ll be remembered for it when you need it most.

Businesses Need To Reinstate VAT Direct Debits

Posted on June 18, 2020 | by Jade Donno

The deferral of VAT payments due to coronavirus comes to an end on 30 June and businesses need to take action to reinstate their direct debit mandates.

The Institute of Chartered accountants in England and Wales (ICAEW) Tax Faculty has reminded its members.

The VAT payment deferral means that all UK VAT-registered businesses have the option to defer VAT payments due between 20 March and 30 June 2020 until 31 March 2021.

However, ICAEW is reminding businesses that they need to take steps to reinstate their direct debit mandates so that they are in place in time for payments due in July 2020 onwards. Any outstanding returns should be filed, and three working days should be allowed to elapse before reinstating the direct debit mandate.

HMRC will issue guidance on the end of the VAT deferral period very soon but, to be effective, direct debit mandates usually need to be set up three working days before a VAT return is filed.

We cannot set up direct debit mandates on behalf of our clients; the business needs to set up the mandate through their business tax account.

HMRC has confirmed that it will not collect the outstanding balance of deferred VAT when the direct debit mandate is reinstated. HMRC has made the necessary systems change to avoid this happening for businesses in MTD for VAT.

Click here to find out more

C19 Business News Update

Posted on June 15, 2020 | by Jade Donno | Leave a Comment

What’s Going On Now?

As time goes on it is getting harder and harder to keep track of all the Government changes. We have put together this blog to summarise the latest changes.

STAYING ALERT AND SAFE (SOCIAL DISTANCING)

Everyone’s actions have helped to reduce the transmission of coronavirus in our communities. Fatalities and infection rates continue to fall.

The government has set out its plan to return life to as near normal as we can, for as many people as we can, as quickly and fairly as possible in order to safeguard livelihoods, but in a way that is safe and continues to protect the NHS. The most important thing we can continue to do is to stay alert, control the virus, and, in doing so, save lives.

This guidance applies in England – people in Scotland, Wales and Northern Ireland should follow the specific rules in those parts of the UK.

Click here for more information

NEW FUNDING CONFIRMED FOR LOCAL AUTHORITIES TO HELP THOSE STRUGGLING FINANCIALLY AS A RESULT OF CORONAVIRUS

An additional £63 million has been confirmed by government to be distributed to local authorities in England to help those who are struggling to afford food and other essentials due to coronavirus.

Local authorities are already working to support those who are vulnerable, and this additional funding will contribute to that work.

Many have existing mechanisms to provide this support in a way that suits the needs of their community. This includes provision of cash payments, food vouchers, or alternative means of support.

Click here for more information

MANAGEMENT OF STAFF AND EXPOSED PATIENTS AND RESIDENTS IN HEALTH AND SOCIAL CARE SETTINGS

This guidance provides advice on the management of staff and patients or residents in health and social care settings according to exposures, symptoms and test results. It includes:

staff with symptoms of COVID-19
staff return to work criteria
patient exposures in hospital
resident exposures in care settings

Please note that this guidance is of a general nature and that an employer should consider the specific conditions of each individual place of work and comply with all applicable legislation, including the Health and Safety at Work etc. Act 1974.

There may be further information specific to each country in the United Kingdom, as this guidance was written by Public Health England primarily for an English health professional audience. To see if country specific information is available, please refer to Health Protection Scotland, Public Health Wales, or Public Health Agency in Northern Ireland.

Click here for more information

WHAT YOU CAN AND CAN’T DO FAQs

This guidance has been updated 12 June.

Click here for the guidance

Today is going to be a good day coffee cup

How to stay positive for your family and your team

Posted on June 3, 2020 | by Jade Donno | Leave a Comment

How to stay positive for your family and your team (even if you are scared and worried too)

Do you run a business where you’re responsible for your employees’ wellbeing? Do you manage a team at work? Do you have children or vulnerable family members who depend on you?

Whether you said to yes to just one or all of the above, having people depend on you, especially during such a difficult time as now, can quickly lead to burnout. If this happens, who will you be able to help then?

To help you stay strong so that you can be there for others during this time, here is how to stay positive even if you’re scared and worried too.

3 steps for staying positive

Step 1: Deal with your fear and anxiety first

You need to let go of the negative feelings draining your energy first before you’re able to feel positive and expend this energy for others. Here are a few ways that you can do that:

Seek community and support by talking to friends and family or joining a support group online.
Get your news and facts from reputable resources but limit your exposure to news and social media.
Plan your daily routine and stick to it to maintain a sense of structure and normality.
Prioritise your own self-care and practice mindfulness activities such as yoga and meditation.

Step 2: Train your brain to think positively

Our brains are wired to protect us, therefore sensing ‘threats’ and thinking ‘negatively’ are often a reflex response. To overcome this, you need to train your mind to think differently. Here are a few ways that you can do that:

Believe a positive attitude is a choice and start to focus on positive thoughts.
Rid your life of negativity by limiting your exposure to the news and people who think negatively.
Practice positivity every day by writing down things that you are grateful for.
Look for positivity to reinforce it in your life. You can do this by re-framing things that happen in a positive way (e.g. finding the silver lining).

Step 3: Share this positivity with others

Only when you let go of negative feelings that are a drain on your energy can you be there for others. Here are some of the best ways you can help others:

Check-in regularly and really listen to them.
Be empathetic and share what works for you.
Help them to be more positive in their lives too.
Spread kindness as much as possible and show your appreciation for people with words and gestures.

SELF-EMPLOYED GET SECOND GRANT FROM GOVERNMENT

Posted on June 1, 2020 | by Jade Donno | Leave a Comment

Sole Traders to get second grant from the Government.

The government’s Self-Employment Income Support Scheme will be extended, giving more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months, the Chancellor announced on Friday 29 May 2020. Rishi Sunak announced the Self-Employment Income Support Scheme will be extended – with those eligible able to claim a second and final grant capped at £6,570.

Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.

Further guidance on the second grant will be published on Friday 12 June and we will keep you up to date with the details when we know them.

See: https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme?utm_source=95036a42-e8c3-49f3-8f73-6300a69ea34a&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

What has changed?

Posted on May 26, 2020 | by Jade Donno | Leave a Comment

On Sunday Boris Johnson addressed the UK and gave a speech that confused the nation. Stay alert, control the virus, save lives. Full of contradictions the speech lacked clarity and direction leaving the UK feeling lost. Yesterday, in parliament we gained a little more clarity on the road map, however each step is conditional to the spread of the virus and still lacks detail on how business will be able to reopen and when people will be able to see their families. So what has changed? We have written a summery of the changes so far in the roadmap, all of which are subject to change if the virus escalates. For the full documentation please click here.

Phase One – Effective from 13th May

For the foreseeable future, workers who are able to work from home should continue.
Workers who are unable to work from home should travel to work where possible.
Sectors of the economy that are allowed to be open, should be open. This includes food production, construction, manufacturing, logistics, distribution & scientific research in laboratories. These business should follow the new “COVID-19 Secure” guidelines that will be published this week.
People should aim to wear a face-covering in enclosed spaces where social distancing isn’t always possible. If your business would like branded face masks please contact Kiiwii Clothing.
People may exercise outside as many times each day as they wish. Making sure social distancing is still in effect.
People may drive to outdoor open spaces as long as social distancing is adhered to.
People can meet up with one other person not from their household to exercise with, providing they stay two metres apart. Paul will be happy as he will be able to play golf again.
Vulnerable people to continue to minimise contact with others outside their households, but do not need to be shielded.

Phase Two – Effective from June 1st (at the earliest)

A phased return for schools. The department of education will engage closely with schools and nurseries to develop detail and guidance on how schools can facilitate this.
Opening non-essential retail. Hospitality and personal care are not included in this phase.
Permitting cultural and sporting events to take place behind closed-doors to be broadcasted.
The re-opening of more local public transport. Subject to strict measures.
Potentially allow people to expand their household group to include one other household.
The Government is also looking into how to facilitate small weddings.

Phase Three – Effective from July 4th (at the earliest)

To open personal care businesses, such as hairdressers and beauty salons.
To open hospitality, such as restaurants, pubs and accommodation.
To open public places, such as places of worship.
To open leisure facilities, such as cinemas.

These steps are all subject to following the COVID-19 secure guidelines. Venues that are naturally crowded and cannot execute social distancing may still not be able to open.

Each phase will be monitored and the Government have expressed that they will not hesitate to lock everything down again if the virus escalates. Social distancing must be followed to be able to move forward with the roadmap.

Going ‘back to normal’ seems a long way off. But the most important thing, is for everyone to stay safe and healthy.

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Did your pregnancy affect your claim?