July 2020 Newsletter | Cylchlythyr Misol Gorffennaf 2020

On Monday 29 June, the Welsh Government re-opened their Economic Resilience Fund. This fund offers grants of up to £10,000 for microbusinesses that have seen a reduction of at least 40% in turnover since 1 March 2020. Visit the Business Wales website to check your eligibility and to apply:
https://fundchecker.businesswales.gov.wales/

 

Many individuals have been re-assessing their careers during lockdown and decided to launch a new business. We now offer a free 30 minute consultation to anyone establishing a new business and who is seeking advice.

 

Ken Skates, Welsh Economic Minister, has confirmed a new bursary for new businesses set up since 1 March 2019. No further details have yet been announced. This is great news for those not eligible for self-employed support to date.

 

The option to defer VAT payments has come to an end. If you have cancelled Direct Debits with HMRC during the deferral period, these need to be reinstated.

 

HMRC have recently sent out statements detailing tax amounts due. Due to Covid, HMRC have allowed the deferral of income tax payments due by 31 July 2020 to 31 January 2021. These statements have contained a number of errors, causing a great deal of confusion. Please contact us if you require clarification.

 

Huw's probate practice is offering a new service for the preparation and submission of Health and Financial Powers of Attorney, alongside the will planning and Inheritance Tax planning reviews.

 

Beware of fake calls from scammers purporting to be from HMRC stating that they will issue a warrant for your arrest. Threatening calls are a clear indicator that they are not from official sources. Hang up the phone.

 

We deal with many expat clients and recently had a query from Oman. In a letter to the Welsh language Tax Office on behalf of the client, we required a translation of "The Sultanate of Oman". Imagine the shock of seeing the translation that read "swltanad o fenyw" ("sultanate of a woman")! Online translation results need to be checked carefully!

 

Ask Huw & Aled: I've recently become a full-time professional singer and have earnt money via competition winnings. Are the singing competition winnings taxable now that I am fully professional?

During the period of being a student, relatively small prizes can probably be regarded as non-taxable. However, if competition prizes are substantial and regular, they will be regarded as trading income.

This is a grey area within HMRC guidance and judgement is required to assess whether this income is taxable or non-taxable. Ask your accountant.

Contact Huw Aled Accountants