CKLG BLOG

Reaching out to individuals affected by Covid-19

31.03.2020

Private Client

We’re all grappling with the new norm, life as we once knew it has changed exponentially – we’re embracing new technology, flexible working and our children’s homework.  We may also be quietly worrying about financial matters. 

The government have announced a number of measures to help individuals during this challenging time.  

• If you’ve not completed your 2018/19 Tax Return by now and are self-employed (as a sole trader or a partner in a partnership), get it done by 23 April 2020 otherwise you’ll lose out on the Self-Employed Income Support Scheme.
• The 31 July 2020 payment of tax on account can be deferred to 31 January 2021 without interest or penalties being levied.
• If you are struggling financially and owe tax, make use of HMRCs Time to Pay facility.  

Don’t forget that

• If you think you’re due a tax refund for 2019/20, complete your 2020 Tax Return early.
• If you pay Income Tax at 40% or above, don’t forget to claim additional tax relief for Gift Aid payments to charity and independent pension contributions in your Tax Return.
• Are you eligible to claim tax relief for home working at £4 per week (to be increased to £6 per week from 6 April) plus the actual costs of any business calls made?
• Could you bank a tax refund by claiming the Marriage Allowance for the past five years?
• If both you and your partners income has dropped to below £50,000 each, consider claiming Child Benefit to help your cashflow.

Non-UK Residents:

Non-UK residents should count the number of days spent here in the UK, every tax year, to ensure there is no liability to Income Tax and Capital Gains Tax on worldwide income.  Fortunately HMRC have recently updated their ‘Statutory Residence Test’ guidance for days spent here due to exceptional circumstances, beyond your control, to take account of Coronavirus. 

If you find yourself here as a result of being quarantined or by self-isolating, are advised by the government not to travel or are unable to leave as a result of closures of international borders, these additional periods of time may be regarded as exceptional.  The same will apply if you are asked to return temporarily to the UK by your employer. 

Please note that the maximum number of days spent in the UK on one trip, or several trips in any tax year, that can be ignored due to exceptional circumstances is 60.  

You must keep a record of all the days you spend here in the UK every tax year.  If you complete UK Tax Returns, this information will be required to complete the  ‘Residence, remittance basis etc.’ supplementary page to support your Tax Return. 

All CKLG advisers are working from home and are keeping in touch with clients, contacts and colleagues by using the latest technology such as Zoom, WhatsApp and by phone.  Please do call us on 01223 810 100 for support