Updated Information on how small businesses and the self-employed can weather Covid 19 – March 27th, 2020

Ihelm Enterprises Covid 19 March 27 update

I want to try and keep the information as clear and as simple as I possibly can for everyone, so I won’t be writing out everything again, I will just be writing out the highlights.

Last night’s big announcement by the Chancellor of the Exchequer was a support package for the self-employed. This is what we currently know:

– the scheme is only open to those self-employed people who have filed tax returns up to and including the 2018/2019 tax year and are still trading in the 2019/2020 tax year
– are trading when you apply (or would be except for Covid-19)
– intend to continue to trade in the 2020/2021 tax year
– have lost trading/partnership trading profits due to Covid-19
– those who have a trading profit of less than £50,000 in the 2018/2019 tax year, or an average trading profit of less than £50,000 from 2016/2017, 2017/2018 and 2018/2019 are eligible
– more than half of your income has to have come from self-employment
– you will receive 80% of your average monthly trading profit over the last three years (where applicable), up to £2,500/month in grants for at least 3 months; HMRC will add together the total trading profit for the tax years, divide by 3 (where applicable) and use this to calculate your monthly amount
– only those who are already in self-employment and meet the above conditions can apply
– the scheme also applies to members of partnerships
– HMRC will contact all of those who eligible and tell them how to apply
– the scheme is being designed from scratch and will cover the three months to May
– the grants will be paid in a single lump-sum installment covering the three months and will start to be paid at the beginning of June
– this is a taxable grant
– DO NOT contact HMRC – they will be using the existing information to contact those who eligible
– sole director limited companies where the director is paid through a PAYE scheme is not eligible for this scheme
You can read more about the scheme here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

2) HMRC have announced a new helpline number for businesses and self-employed to contact HMRC about tax-related issues due to coronavirus: 0800 024 1222.

3) Job Retention Scheme

The government has published more in-depth information about the job retention scheme and you can read it here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

There hasn’t yet been any clarification on how sole directors are able to access support – according to some of the information provided by the government, sole director companies may be able to access support through the Job Retention Scheme – however, that requires the employee to be furloughed and unable to do any work for the business, so I have reached out to a number of agencies to try and get some clarification on this. As soon as I have had any concrete clarification, I will pass that information on.

I will be doing some fb lives next week on the self-employed support scheme, the job retention scheme, as well as a more general one to cover all of the support available to businesses, so keep an eye out for those on the FaceBook page. I will also be putting together some fact sheets about each of the schemes available so that all of the information is in one place.

The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

Updated Information on how small businesses and the self-employed can weather Covid 19 – March 26th, 2020

I want to try and keep the information as clear and as simple as I possibly can for everyone, so I won’t be writing out everything again, I will just be writing out the highlights.

There were a couple of announcements and additional information provided yesterday for businesses.

1) Support for businesses through deferring VAT payments

HMRC updated the information late yesterday to say that customers who normally pay their VAT via direct debit should cancel the direct debit with their bank if they are unable to pay. Customers are advised to do this in sufficient time so that HMRC doesn’t attempt to automatically collect the payment when the VAT return is received.

2) Businesses who file accounts with Companies House

Businesses that need to file their accounts with Companies House will be able to apply for a 3-month extension to do so. This will allow businesses to prioritise managing the impact of Coronavirus. Even though the company will have to apply, any company that cites issues around Covid-19 (including health issues) will automatically and immediately be granted an extension. The applications can be made through a fast-tracked online system which will only take 15 minutes to complete. If a company has already extended their filing deadline, or shortened their accounting period, they may be ineligible for an extension. As with other policies, the government and Companies House will continue to review and change things as necessary. You can read more about how to do it here: https://www.gov.uk/guidance/apply-for-more-time-to-file-your-companys-accounts

3) Job Retention Scheme

The Institute of Chartered Accountants in England and Wales have created a document about the Job Retention Scheme and how they understand it. It may not be 100% correct but it is based on the information that has been published and shared: https://www.icaew.com/-/media/corporate/files/insights/coronavirus/the-coronavirus-job-retention-scheme-the-furlough-scheme.ashx

The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

Updated Information on how small businesses and the self-employed can weather Covid 19 – March 25th, 2020

Ihelm Enterprises Covid 19 March 25th

I want to try and keep the information as clear and as simple as I possibly can for everyone, so I won’t be writing out everything again, I will just be writing out the highlights.

Yesterday’s announcements by the government dealt mainly with health. It is rumoured that the government is working on a package for the self-employed, but as of yet nothing has been announced. Rest assured that I will share any information that is released as soon as it is available.

1) The government did release information late yesterday about how to claim the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund. It’s a very lengthy document so I am just going to post a link to it, but it tells the local authorities how to provide this grant to businesses and includes further information on the eligible criteria. You can read about it here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/874772/small-business-grant-fund-and-retail-guidance.pdf

2) Information is now available for the Nursery Discount that was announced the other day. It goes through who is eligible and how the local authorities will provide this assistance: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/874284/Nursery_discount_guidance.pdf

The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

Updated Information on how small businesses and the self-employed can weather Covid 19 – March 24th, 2020

Covid 19 Update March 24

I want to try and keep the information as clear and as simple as I possibly can for everyone, so I won’t be writing out everything again, I will just be writing out the highlights.

There weren’t any big financial announcements last night, but the UK Government did announce that the country is now in lockdown and only essential businesses are allowed to stay open. You can read more about what businesses must close by going to: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/874732/230320_-_Revised_guidance_note_-_finalVF.pdf

If there is any way that you can run your business online, I would advise that you do so as this way you can keep your business going.

Thus far, nothing has been announced for the self-employed or the micro-businesses (sole director companies with no other employees), but we are hopeful that a package will be announced to support these types of businesses in a similar way to larger businesses. As soon as anything is announced I will of course share that information.

All of the support out there is meant to be accessible from today – if you are eligible for support due to Small Business Rate Relief you will be contacted by your council.

1) One announcement that did come out is that Nurseries that pay business rates will now get a rates holiday for the 2020 to 2021 tax year. The properties must be occupied by providers of Ofsted’s Early Years Register and be wholly or mainly used for the provision of the Early Years Foundation Stage. You don’t need to do anything to receive this holiday as the council will automatically contact you.

2) A new website has been launched by the Government to provide information on the support available to businesses: https://www.businesssupport.gov.uk/

3) Moratorium on Lease Forfeiture for Commercial Tenants

The government has extended protection to commercial tenants so that landlords cannot evict tenants who are not able to pay their rent due to coronavirus. This will last for a period of 3 months. Tenants are encouraged to talk to their landlords about a payment holiday or a reduction in rent for a 3 month period to allow them to improve their cashflow. The tenant will still be liable for making the payments and the landlord can recover the rent due after the 3 month period.

The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

Updated Information on how small businesses and the self-employed can weather Covid 19 – March 21st, 2020

I want to try and keep the information as clear and as simple as I possibly can for everyone, so I won’t be writing out everything again, I will just be writing out the highlights.

There were some pretty big announcements made last night, but we are still hoping the government will go even further in helping all businesses, no matter the size, right across the UK

1) Coronavirus Job Retention Scheme:

All UK employers will be able to access support to continue to pay part of their employees’ salaries for those who would otherwise have been laid off during this situation.

In order to claim the money, you will need to designate affected employees as “furloughed workers” and notify your employees of the change in their employment status (this remains subject to existing employment law, and depending on the contract, may be subject to negotiation) and submit the information to HMRC about those employees status and their earnings through a new online portal (the information required will be set out at a later date). HMRC will then reimburse the employer 80% of the employee’s salary, up to £2,500/month. This is being backdated to all employees who have been laid off since March 1st. The government has said this is currently for 3 months, but will be continuing to review this scheme and put it in place for longer if necessary. The existing payroll systems are not set up to facilitate this scheme but HMRC are working at getting a new system set up urgently.

2) Deferment of VAT and Income Tax Payments

VAT registered businesses will be able to defer their VAT payments for 3 months. The deferral will apply from 20 March 2020 to 30 June 2020. You don’t need to apply for this to happen – it will be done automatically, you just do not make a payment during this time period and you will be given until the end of the 2020 to 2021 tax year to pay any liabilities accumulated during the deferment period. All VAT refunds and reclaims will be paid by HMRC as normal.

All income tax self-assessment payments due on 31/07/2020 will be deferred until 31/01/2021. You do not need to apply for this to happen as it will be automatically granted. There won’t be any penalties or interest for late payments charged during the deferral period.

3) Cash grants for retail, hospitality and leisure businesses:

This scheme provides all businesses in retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property. For any business in this sector that has a rateable value of under £15,000, they will receive a grant of £10,000. Any business in this sector that has a rateable value of between £15,001 and £51,000, they will receive the full grant of £25,000.

In order to obtain this grant, your business must be based in England and be in the retail, hospitality and/or leisure sector. Your business must be a shop, restaurant, cafe, drinking establishment, cinema, live music venue, for assembly and leisure, or a hotel, guest and boarding premise and self-catering accommodation.

Your local authority will write to you automatically if you are eligible. The guidance for this scheme will be provided to the local authorities shortly.

4) Coronavirus Business Interruption Loan Scheme:

The government has increased the turnover for a business to no more than £45 million per annum and they have increased the time limit for the finance interest free payments from 6 months to 12 months.

5) Support for businesses paying tax:

This scheme is now also open to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities.

6) Support for the self-employed:

It has been announced that the government is increasing the standard allowance in Universal Credit and the basic element of Working Tax Credit by £20.00/week for 1 year from April 6, 2020. Universal credit will increase from £317.82/month to £409.89/month for a single claiming aged 25 or over.

The government is also increasing the Local Housing Allowance rate and it will apply to all private renters who already get Universal Credit housing element or are new to getting it, as well as to those who already get Housing Benefit.

For the self-employed who claim Universal Credit, you will not have to go to the jobcentre to prove you have gainful self-employment if you have to stay at home due to coronavirus, or are ill as a result of it.

The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

Updated Information on how small businesses and the self-employed can weather Covid 19 – March 20th, 2020

I want to try and keep the information as clear and as simple as I possibly can for everyone, so I won’t be writing out everything again, I will just be writing out the highlights.

The government have published some very clear guidelines on what businesses and workplaces should be doing in regards to staff. It’s a very lengthy document so I’m not going to publish all of the information but this is the link to read: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/guidance-for-employers-and-businesses-on-coronavirus-covid-19

Yesterday, further information was released on the various packages the government has created to help support businesses during these uncertain times.

1) Statutory Sick Pay:

If your employer requires evidence, those who have symptoms of Coronovirus can get an isolation note from https://111.nhs.uk/covid-19 and those who are living with someone who has symptoms can get a note from https://www.nhs.uk/conditions/coronavirus-covid-19/self-isolation-advice/. The government is going to work with employers in the upcoming months to set up the repayment mechanism as soon as possible. They have also added new criteria to access this scheme – your business must be UK based.

2) Business rates holiday for retail, hospitality and leisure businesses

A bit of further guidance on this specific relief has been published – your business must be based in England and the properties that will benefit from this relief will be occupied properties that are wholly or mainly used as shops, restaurants, cafes, drinking establishments, cinemas, live music venues, places used for assembly and leisure, and hotels/guest and boarding premises/self-catering accommodation.

You don’t need to do anything to access this grant. It will be applied to your next council tax bill in April 2020. You may find that your local authority will have to reissue your bill automatically to exclude the business rate charge, and they will be doing this as soon as possible.

If you wanted to estimate the business rate charge you will not have to pay you can use the business rates calculator: https://www.gov.uk/calculate-your-business-rates

If you need further guidance on this you can find it here: https://www.gov.uk/government/publications/business-rates-retail-discount-guidance

3) Cash grants for retail, hospitality and leisure businesses:

To find out if you are eligible for this, you need to contact your local authority.

4) Coronavirus Business Interruption Loan Scheme:

The government has published further guidance on the eligibility for this scheme – your business must be UK based and have a turnover of no more than £41 million per annum and your business must meet the other British Business Bank eligibility criteria.

You can find out the full rules of the Scheme and the list of accredited lenders by going here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-scheme-cbils/. All of the major banks will be offering this Scheme once it’s fully launched.

You are advised to talk to your bank or finance provider (not the British Business Bank) as soon as possible to discuss your business plan with them. Your lender can then act quickly once the Scheme has launched. You could also ask for a repayment holiday on any existing loans that you have.

5) Support for businesses paying tax:

The government has released more information about who is eligible for this type of support. Your business must pay tax to the UK government and has outstanding tax liabilities.


The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

Updated Information on how small businesses and the self-employed can weather Covid 19 – March 19th, 2020

I want to try and keep the information as clear and as simple as I possibly can for everyone, so I won’t be writing out everything again, I will just be writing out the highlights.

1) Coronavirus Business Interruption Loan:

It has been announced that the further details about this scheme, including the lenders that will be providing it, will be available from the week commencing March 23, 2020.

2) Larger Firms that can’t access the measures already in place:

The Bank of England is going to provide a new lending facility to provide assistance to larger firms and help them to raise working capital through the purchase of short-term debt. It will support companies that are fundamentally strong but have been affected by the squeeze on short-term funding. It will also support the corporate finance markets and ease the supply of credit to all firms. Information on how to access this funding will be released in the following days and it will be available from the week beginning March 23, 2020.

3) IR35

The government is going to delay the introduction of the new rules applying to IR35 until April 6, 2021 due to Covid-2019.


The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

Updated Information on how small businesses and the self-employed can weather Covid 19 – March 18th, 2020

I want to try and keep the information as clear and as simple as I possibly can for everyone, so I won’t be writing out everything again, I will just be writing out the highlights.

1) Support for Businesses that pay little or no business rates:

The amount of the grant has been raised to £10,000 if your business is eligible for SBRR or Rural Rate Relief. You don’t need to apply for this and should be contacted by your local authority. The funding will be provided to local authorities in early April and the government will provide guidance to them shortly.

2) Support for businesses that pay business rates:

A business rate holiday is being introduced for retail, hospitality and leisure businesses in England for the 2020/2021 tax year. The government has also said that for businesses with a rateable value between £15,000 and £51,000 a £25,000 grant will be provided to retail, hospitality and leisure businesses operating from smaller premises. The government will provide guidance to local authorities for the business rates holiday by March 20th, 2020.

3) Coronavirus Business Interruption Loan:

The amount a business can claim has been increased to up to £5 million in value. The first 6 months of the loan will be finance interest-free as the government will cover the first 6 months of interest payments.

4) Insurance:

If you have appropriate policies based on the government advising people to avoid your business, your insurance firm will payout. Your insurance would need to say that cover is provided for both pandemics and government-ordered closures. Please contact your insurance company to see if you are covered.

The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

Information on how small businesses and the self-employed can weather Covid 19

Like many other small businesses in the UK, I am left wondering what to do and how will my business survive the storm that is Covid-19. I am a firm believer in helping businesses to grow, so I have put together a very quick overview of what help is available out there.

The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/

These are the current measurements that have been put in place to help businesses across the UK.

  1. Statutory Sick Pay Relief Package

    This has been set up to allow small- to medium-sized businesses and employers to be able to reclaim SSP paid for sickness absences due to Covid-19.

    There are certain criteria that the businesses must meet, however:
    – it will cover up to 2 weeks’ SSP per eligible employee off work due to Covid-19 (it cannot be claimed to cover any other SSP)
    – employers with fewer than 250 employees as of 28/02/2020 will be eligible
    – employers can reclaim expenditure for any employee who claimed SSP (according to the new criteria) due to Covid-19
    – employers need to keep records of staff absences and payments of SSP, but employees won’t need to provide a GP fit note
    – also covers those employees who aren’t ill but unable to work because they’ve been advised to self-isolate in line with guidance issued by the Government
    – the eligible period will commence the day after the regulations on extension of SSP to those staying at home comes into force
    – the mechanism for claiming this repayment hasn’t yet been set up but will be set up over the coming months

  2. Business rates discount in England increased to 100% for 2020 to 2021 tax year for properties below £51,000 rateable value. This relief has also been expanded to the leisure and hospitality sectors. All businesses receiving the retail discount in the 2019 to 2020 tax year will be rebilled by their local authority. However, any business eligible for newly expanded retail discount and/or the new pubs discount may need to apply to their local authority to receive the discount.

    Any enquiries on eligibility or provision of rate relief should be directed to your local authority. Guidance given to local authorities on the expanded retail discount will be published by the government by March 20th.

  3. Support for businesses who pay little or no business rates

    The government is providing an additional £2.2 billion funding for local authorities to support small businesses that already pay little or no business rates because of small business rate relief (SBBR) which will provide a one-off grant of £3,000 to businesses currently eligible to help meet ongoing costs.

    There hasn’t yet been any information on how to get this grant.

  4. Coronavirus Business Interruption Loan Scheme

    A temporary scheme delivered by British Business Bank will launch in a matter of weeks to support businesses to access bank lending and overdrafts. The Government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. They will not charge businesses or banks for the guarantee – and will support loans of up to £1.2 million in value. The new guarantee will initially support up to £1 billion of lending on top of current support offered through British Busines Bank.

  5. Support for businesses paying tax

    All businesses and self-employed people with outstanding tax liabilities may be eligible to receive support with tax affairs. Arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities. During the outbreak, the usual 3.5% annual interest of deferred tax payments will be waived.

    If due to Covid-19 you are concerned about paying your taxes, call HMRC’s dedicated helpline on 0800 0159 559. The helpline is open fro 8 am to 8 pm Monday to Friday (excluding bank holidays).

  6. Self-employed

    For those who are self-employed and not eligible for SSP, contributory Employment and Support Allowance will be payable, at a rate of £73.10 per week if you are over 25. This is for those who are eligible and affected by coronavirus or self-isolating in line with advice, from day one of sickness rather than day 8. They have also made it easier to claim Universal Credit. These measures also apply to those who earn below the Lower Earnings Limit.

  7. Mortgage Holidays

    Some banks and mortgage lenders are allowing customers affected by Covid-19 to delay their mortgage payments. Contact your bank or mortgage lender to discuss whether you can delay payments for a month or two in order to help with the cashflow – just remember that you may end up having to pay additional interest and such.

I will do my best to ensure that this information is kept up to date regularly – though there may be a delay of up to 24 hours between what is announced by the Government and getting it onto the blog.

Update as of 17:54pm: I’ve just been catching the highlights in the latest information released during the daily briefing and the government has announced the following:
– government-backed and guaranteed loans of £330 bn to support companies
-£10,000 cash grants for smaller firms
– an extension of the business rate holiday announced in the Budget
-a three-month mortgage payment holiday for homeowners

As more information becomes clear and available, I will update the blog and the fb page.

How do I register as self-employed?

Self-employed

Now that you have decided that you are indeed running a business and you need to register as self-employed; the process is pretty straight-forward. It is important to know that you must register by 5th October of your second year of trading, but it is advised that you register a lot sooner, and preferably within 3 months of starting your business.

To register as self-employed go to https://www.gov.uk/set-up-sole-trader, click on the link within the article, “Register for Self Assessment”, and follow the steps. Once you have submitted the information, HMRC will post out your Unique Taxpayer Reference (UTR) and login details for Government Gateway. After you receive this information, you need to log onto your Government Gateway Account and complete your registration.

You may also need to consider the following:
1) Registering for VAT if your turnover is above the VAT threshold which has been £85,000 since 01/04/2017.
2) Registering for the Construction Industry Scheme if you are working as a contractor or sub-contractor in the construction industry.
3) Registering as an employer if you will be employing staff.

Once you are registered you will need to keep track of all income and expenses for the business so that you are able to file your Self-Assessment Tax Return and pay Class 2 and Class 4 National Insurance Contributions.

To make it easier to keep your business records straight, it helps if you separate them from your personal records. One way to do this is by setting up a separate bank account and/or PayPal account. This will ensure that only business transactions are tracked and make it easier for you to complete your accounts.

The amount of tax you will pay will depend on the profit of the business – this is calculated by subtracting allowable business expenses from your income. You are then taxed on the taxable profit. The tax-free personal allowance for both the 2019/2020 and 2020/2021 tax year is £12,500. After that, you will pay 20% tax up to £50,000, 40% tax on income over £50,000, and then 45% tax on income over £150,000.

Watch for my next blog post which will cover what you can claim as self-employed.