Express Trusts and the Trust Registration Service (TRS)

Express Trusts and the Trust Registration Service (TRS)

Express Trusts and the Trust Registration Service (TRS)

You might well have heard by now that per new government anti-money laundering directives, that trustees of most express trusts, including those that do not have to prepare tax returns, are required to submit information about the trust to the government via the Trust Registration Service by 1st September 2022.

As such, if you are involved in any trust arrangement and are unsure whether or not you need to take action by 1st September we would strongly recommend that you either read our brochure (linked here), or you can watch our brief Q&A video on the subject as shown below!

If you have any questions on this subject, or require any help with the registration process then please get in touch. You can call on 01243 782 423 or head to our contact form!

We also update our YouTube Channel regularly with new content, see here: Lewis Brownlee YouTube channel

Paying Back A Self-Employment Income Support Scheme (SEISS) Grant

Paying Back A Self-Employment Income Support Scheme (SEISS) Grant

Paying Back A Self-Employment Income Support Scheme (SEISS) Grant

There is a new section in the SEISS guidance called ‘If you still need to make a claim’. If you’ve not been able to make a claim due to an HMRC error or other exceptional circumstances, you must contact HMRC by 28 February 2022. If you think your grant amount is too low, you must also contact HMRC by 28 February 2022.

You must tell HM Revenue & Customs (HMRC) if, when you made the claim, you were not eligible for the grant. For example:

  • for the first or second grant, your business was not adversely affected
  • for the third, fourth or fifth grant, your business had not been impacted by reduced activity, capacity or demand or inability to trade in the relevant periods
  • you did not intend to continue to trade
  • you have incorporated your business

You must also tell HMRC if you:

  • received more than HMRC said you were entitled to
  • amended any of your tax returns on or after 3 March 2021 in a way which means you’re no longer eligible or are entitled to a lower fourth or fifth grant than you received
  • made a mistake reporting your turnover in your claim for the fifth grant which means you are entitled to a lower grant than you received
  • have received a letter or email from HMRC that says you need to pay back some or all of a grant

When you must tell HMRC
In most cases, if you are not eligible and have to pay the grant back, you must tell HMRC within 90 days of receiving the grant.

For the fourth and fifth grants the rules for when to tell HMRC are different if amending your return affects your eligibility or grant amount.

If your return has been amended
You must tell HMRC if there is an amendment to any of your tax returns on or after 3 March 2021 which either:

  • lowers the amount of fourth or fifth grant you’re eligible for
  • causes you to no longer be eligible for the fourth or fifth grant

If your return has been amended before claiming your grant, you must tell HMRC within 90 days of receiving your grant.

If your return has been amended after receiving your grant, you must tell HMRC within 90 days of making the amendment.

If you do not tell HMRC, they will write to you to recover the grant and you may also have to pay a penalty. Find more information on how HMRC will recover your overpaid grant.

You do not have to tell HMRC if the grant amount:

  • you are eligible for has lowered by £100 or less
  • was £100 or less

If you are not sure, you should still tell HMRC about the amendment using the online form.

If you made a mistake when reporting your turnover
You need to tell HMRC if you:

  • made a mistake reporting your turnover in your claim which means you are entitled to a lower grant than you received
  • later realise you should have reported a different turnover figure in your claim which means you are entitled to a lower grant than you received

Voluntary repayments
You can also tell HMRC if you want to voluntarily pay back some or all of the grant you received. You can do this at any time.

You will need your:

  • Government Gateway user ID and password that you used when you made your claim
  • grant claim reference – you’ll find this in the online service or on your copy of the grant claim
  • Self-Assessment Unique Taxpayer Reference (UTR) number.

You can find further details on the GOV.UK website: Return to your claim for the Self-Employment Income Support Scheme – GOV.UK (www.gov.uk)

If you have any questions or would like to discuss your situation with one of our team, then please get in touch. You can call us on 01243 782 423, or email [email protected] 

SEISS 5th Grant Deadline – 30th September 2021

SEISS 5th Grant Deadline – 30th September 2021

SEISS 5th Grant Deadline – 30th September 2021

 

The deadline for claiming the fifth SEISS grant is 30 September, so quickly approaching.

Please be aware that you will need to know the turnover of your trade during the year ended 5 April 2021 when making a claim. Also please bear in mind that the qualifying criteria for this claim is different to the first four grants. This means some who were not previously eligible to claim might now be, and vice versa.

The most important criteria to meet is that you are able to confirm that the trading profits of your business will have suffered a significant reduction during the period 1st May 2021 to 30th September 2021 due to the impact of COVID-19 as well as prove that your turnover has reduced significantly.

You also need to have been in business during the 2020/21 tax year, a business which has carried on into the 2021/22 tax year (or that you intend to carry it on), and you also meet the profit requirements applicable to previous years (average of below £50,000 per annum).

Please let us know urgently should you have any queries about your eligibility for the grant or require any assistance with preparation of any information that needs to be submitted with a claim.

For further information about the fifth SEISS grant you can refer to our previous blog or go to the GOV.UK website: Self-Employment Income Support Scheme fifth grant – GOV.UK (www.gov.uk)

 

If you have any questions or would like to discuss your situation with one of our team, then please get in touch. You can call us on 01243 782 423, or email [email protected] 

The fifth SEISS Grant

The fifth SEISS Grant

The fifth SEISS Grant

Claims for the fourth SEISS grant have now closed, as the last date for making a claim was 1 June 2021. However, a fifth grant covering May 2021 to September 2021 will be open to claims from late July 2021.

The grant is taxable and will be paid out in a single instalment. Guidance for claiming the grant will be available by the end of June 2021.

To be eligible for the grant you must be a self-employed individual or a member of a partnership.

You must have traded in the tax years:

  • 2019 to 2020 and submitted your tax return on or before 2 March 2021
  • 2020 to 2021

You must either:

  • be currently trading but are impacted by reduced demand due to coronavirus
  • have been trading but are temporarily unable to do so due to coronavirus

To work out your eligibility for the fifth grant, HMRC will first look at your 2019 to 2020 Self-Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.

If you’re not eligible based on your 2019 to 2020 tax return, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020.

You must declare that:

  • you intend to continue to trade
  • you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from May 2021 to September 2021

You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.

How the fifth grant works

The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021. HMRC provide more information and support by the end of June 2021 to help you work out how your turnover was affected.

The amount of the grant

Turnover reduction How much you will get Maximum grant
30% or more 80% of 3 months’ average trading profits £7,500
less than 30% 30% of 3 months’ average trading profits £2,850

 

When can you claim the grant?

The online claims service for the fifth grant will be available from late July 2021.

If you are eligible based on your tax returns, HMRC will contact you in mid-July 2021 to give you a date that you can make your claim from.

You can find further details on the GOV.UK website: Self-Employment Income Support Scheme fifth grant – GOV.UK (www.gov.uk)

If you have any questions or would like to discuss your situation with one of our team, then please get in touch. You can call us on 01243 782 423, or email [email protected] 

The LB Roundup – The Fourth SEISS Grant

The LB Roundup – The Fourth SEISS Grant

The LB Roundup – The Fourth SEISS Grant

Thank you to those who attended our roundup webinar! The recording is at the bottom of this blog 👇

The focus of today’s webinar was on the fourth SEISS grant, which is now open to claimants!

The fourth SEISS grant covers the period from 1 February 2021 to 30 April 2021, and to claim you must have:

  • Submitted your 2019/2020 tax return on or before 2 March 2021
  • Traded in both tax years 2019/20 and 2020/21

You must also be trading but impacted by reduced demand OR was trading but temporarily unable to do so.

You must declare that you intend to continue to trade and you reasonably believe there will be a significant reduction in trading profits.

Significant reduction in profits

  • Before you make a claim, you must decide if the impact on your business between 1 February 2021 and 30 April 2021 will cause a significant reduction in your trading profits for the tax year you report them in
  • You should wait until you have a reasonable belief that your trading profits are going to be significantly reduced, before you make your claim
  • You do not have to consider any other coronavirus scheme support payments that you have received when deciding if you’ve had a significant reduction in your trading profits

 See here for examples on the GOV.UK website.

The fifth and final grant coveting the period from May 2021 to September 2021 will be available in due course…

If you have any questions or would like to discuss any topics further, then please get in touch. You can call us on 01243 782 423, or email [email protected]

To see our other Roundup webinars head to our Videos and Podcasts page, or you can subscribe to our YouTube Channel.

The next LB Roundup is on 30th April at 9.30am – To register head to: https://LBLink.uk/WKLYRNDUP_REG 

The LB Business Broadcast – Podcast

You can also listen to our Weekly Roundup recordings on our Podcast!

It’s available on Apple, Spotify and Google – just search for ‘The LB Business Broadcast‘.

Pre Year End Tax Planning – 2021

Pre Year End Tax Planning – 2021

Pre Year End Tax Planning – 2021

See the webinar recording at the bottom of this blog 👇

As we’re coming towards the end of the tax year, we are very conscious that time is running out and that at some point, the Chancellor will inevitably have to put measures in place to help pay back money that has been borrowed due to COVID-19.

In this webinar, our Tax Director Tom Foster and Senior Tax Adviser Shaun Dodson will go through some Pre Year End Tax Planning tips and areas which you may wish to review before the end of the tax year!

Topics covered in the webinar include:

  • Payroll Considerations – (skip to 00:57)
  • P11d Benefits – (skip to 04:46)
  • Working From Home – (skip to 09:21)
  • Inheritance Tax – (skip to 14:43)
  • The Self Employed – (skip to 19:18)
  • Company Owners – (skip to 24:32)
  • Pension Planning – (skip to 28:10)
  • Capital Gains Tax – (skip to 31:07)
  • General Tax Planning Points – (skip to 34:43)
  • The Budget – (skip to 38:36)

We have also put together a guide, which explores these Tax Planning Tips further.

You can download the guide here: https://www.lewisbrownlee.co.uk/tax-planning-tips-2021/ 

If you wish to speak to one of our tax team about your situation and the options you may have for efficient tax planning, you can call us on 01243 782 7423 or email [email protected]